Dubai - Mubasher: National Bonds Corporation announced on Wednesday that its consistent message of encouraging a savings discipline has resulted in a 75% increase in its regular savers in the UAE last year.
National Bonds, which is owned by the Investment Corporation of Dubai, Dubai Government’s principal investment arm, said in a press release that the increase clearly reflects the growing confidence in its popular Sharia-compliant savings and investment scheme.
National Bonds’ customers have earned annual returns of up to 4% in 2016, according to the statement.
“These numbers demonstrate the success of the company’s capital preservation strategy, its focus on responsible investments in real and sustainable economic sectors, and investment portfolio diversification while retaining focus on the growth of the local economy through the contribution of its Mudaraba portfolio,” the statement added.
National Bonds’ investments in the UAE constitute 92% of the overall investment portfolio, with 5% placed within the other GCC countries and the remaining 3% spread elsewhere.
National Bonds also distributed its annual returns, including annual profits and donated rewards, among the customers.
Holders of Saving Bonds worth more than AED 50,000 received on average 1.76% return, while those with bonds valued at AED 150,000 or more achieved on average 2.43%.
Meanwhile, customers who had a balance of over AED 350,000 in their accounts enjoyed on average 3.37%.
In a bid to reward loyal customers, bond holders that had invested with National Bonds since inception obtained 54.8% in total returns, the company noted.
The three-year Term Sukuk provided 3% annual returns, compared to 2.25% offered on the two-year Term Sukuk and 1.75% on the one-year Term Sukuk. In addition, the company’s Step-Up Bonds offered 4% annual returns.