National Bonds Corporation, the shari'ah-compliant savings and UAE investments company, has announced a 20% increase in regular savers in line with its commitment to increase financial literacy and happiness in the UAE. The company also reported up to 4% returns for National Bonds savers for a second year in row.
Mohammed Qasim Al Ali, CEO, NBC said: “We are passionate about increasing savings across the UAE and we measure our success on the number of savers year on year. We incentivise customers to save with us through competitive returns and we are very pleased to report an increase in regular saving by 20% in 2017. This is reflective not only of the growing confidence in National Bonds, but also the growing appetite among UAE residents to invest in their future.
"At National Bonds, we are committed to helping UAE residents save and as the latest results highlight, it pays to save with us. In fact, bondholders who have invested with us since inception have seen nearly 52% in total returns to date - a significant return on investment.”
Looking at annual returns, including annual profits and donated rewards, holders of Saving Bonds valued at more than AED50,000 received on average a return of 1.64%, while those with bonds valued at AED150,000 or more benefitted from an average return of 2.43%. Customers who had a balance of over AED350,000 in their accounts were rewarded with an average return of 3.62%.
National Bonds’ term sukuk also reported strong results for customers last year, with returns ranging from 1.75% up to 4% for customers with a three-year term. Additionally, holders of regular saver bonds saw an average annual return of 2.82%.
National Bonds also reported, in line with the overall growth of private wealth in the UAE, an increase to the numbers saving with their Prestige Programme. As private wealth continues in the UAE and wider region, 2017 saw an 8% increase in the account balance of Prestige customers. Interestingly, there was a 23% increase in customers who joined Prestige last year, 5% of which were new to National Bonds.
“Last year was a great year for our business. Not only did we witness an increase in returns for a second consecutive year, but we also witnessed stable growth across our business. In 2017, we remained bullish in our investment strategy, but always with our stakeholders’ interest in mind. This, in turn, produced strong results which we look forward to continuing into 2018,” said Al Ali.
National Bonds’ investment strategy remained robust in 2017, with a continued focus on capital preservation for customers and the long-term economic development of the UAE. Low-risk investments remained a key priority in 2017, with the aim of protecting the interests of bondholders and shareholders. This approach has ensured year-on-year increases in shareholder equity.
An example of successful investment by National Bonds can be seen through its retail arm, National Properties. In 2017, National Bonds delivered the second phase of Motor City Green Community. Also known as Casa Familia Villas, this project quickly became one of Dubai’s most sought-after residential addresses and was completed within the year, two months ahead of schedule.
Other areas of success in 2017 include National Bonds’ commitment to sustainability. Last year, National Bonds signed a deal with Dubai Electricity and Water Authority (DEWA) in Q417 to set up an AED2.5 billion green fund. The ground-breaking fund will be the first major green fund with a dedicated arm for shari'ah-compliant investments. The fund’s aim is to invest in multiple types of projects including renewable energy, retrofitting existing fossil fuel-based energy systems, energy efficiency and balancing technologies between electricity demand and supply.
Al Ali concluded: “This is a clear testament to the company’s robust financial strategy, clear vison for the future, as well as the hard work and dedication of our people. We have a number of exciting launches and investment opportunities in the pipeline and I am personally excited for what 2018 has to offer.”