Business News
National Bonds’ Investments Increased to Dh8.8 billion in 2020
Apr
National Bonds, the UAE Sharia-compliant savings and investment company, owned by the Investment Corporation of Dubai (the Dubai Government’s investment arm), achieved outstanding growth in its Investments in 2020, despite the coronavirus pandemic and its worldwide economic consequences. This success is largely due to the innovative programs and services the company is offering its bondholders.
According to numbers released by the company, National Bonds’ Investments increased by an exciting 13% in 2020 to reach AED 8.8 billion, up from AED 7.8 billion in 2019.
The increase in investments wasn’t National Bonds’ only achievement; the company also maintained its leading position in terms of the returns it offered to its bondholders last year.
Over the past few years, National Bonds managed to gain the confidence of individuals and institutional savers alike. The last year was no exception: The company has increased its investments by 13 per cent, while also helping more expats and Emiratis adopt the regular savings habit, which means an increase in bondholders’ confidence.
It was also announced that, those with holdings of AED1 million or above earned a minimum return on investment (ROI) of 2.95%, one of the highest in the region. Meanwhile, the current market EIBOR rate for 1-year is 0.50%.
The earnings on holdings were as follows: those with holdings ranging from Dh350,000 to Dh1,000,000 earned a minimum ROI of 2.45 per cent, from Dh150,000 to Dh350,000 earned a minimum ROI of 1.80 per cent, those with Dh100,000 to Dh150,000 enjoyed a minimum ROI of 1 per cent, while accounts ranging from Dh50,000 to Dh100,000 reached a minimum ROI of 0.85 per cent. in addition, bondholders also received enhanced return on investment through National Bonds’ extensive reward program which distributed a staggering Dh35 million worth of rewards during 2020, (From Mudarib’s own funds).
Aside from profits, the company’s number of regular savers rose by 21 per cent year-on-year in 2020; while the digital sales made via its enhanced mobile application and website climbed by more than 217 per cent compared to the year before. Since its inception, the company has distributed 5.66 million prizes worth Dh658 million rewarded to both Expats and UAE nationals.
National Bonds Chairman, Khalifa Al Daboos, expressed his pride at these numbers. “Last year was full of challenges never seen before by the world, at least in the past few decades, with the COVID-19 pandemic, the restrictions on borders and lockdowns in most countries,” he said.
“Despite all these challenges, the company has achieved impressive growth, thanks to its solid foundation, and sound strategy to offer optimized returns on our investments,” he added. “These results reinforce our confidence in the brand and its leadership role in the industry in the UAE and the region. This will also enhance our bondholders’ confidence in saving with National Bonds and encourage those who haven’t yet started this journey to do so quickly,” he said.
“National Bonds is committed to diversifying its investments and maintaining its prudent strategy, believing that it is capable of delivering the best returns to bondholders with minimum risk,” he added.
As for the impact of the Covid-19 pandemic on the savings rate, Al-Daboos said worldwide restrictions have had a positive effect on saving behavior. “The rate of saving increased during this period,” he said. “During crises, especially those where the end is unforeseen, individuals cut their expenses and start building their emergency savings as a precautionary measure for themselves and their families”.
For his part, National Bonds’ Group CEO, Mohammed Qasim Al Ali, commended National Bonds for managing to record significant growth in multiple facets. “It managed over the past few years, to gain the confidence of individuals and institutional savers alike. The last year was no exception: The company has increased its investments by 13 per cent,” he said. “It has also helped more expats and Emiratis to adopt the regular savings habit, which means an increase in bondholders’ confidence.”
This confidence is due to the company’s strategies and pillars, in addition to the pioneering and innovative programs it launches, to suit the varying needs of different individuals, and the competitive returns it gives to savers, which are amongst the highest in the UAE market,” he added.
“All of these are distinctive achievements, but the one we are proudest of is the 217 per cent increase in the percentage of digital sales made through the enhanced mobile app” he added. “This figure means that the company has managed to meet the most difficult challenge of its journey: Technological and digital transformation,” he said. “The brand is continuing to launch, innovate and update programs to meet savers’ expectations,” he added. “The new programs are part of the company’s strategy to support and provide proactive, integrated and secure saving solutions”.