National Bonds Investment Portfolio Registers Robust Performance in 2014

Offers up to 4% Annual Returns to Customers

Dubai-UAE: 11 March, 2015 – National Bonds Corporation PJSC (National Bonds), the leading sharia-compliant savings and investments schemes provider in the UAE, has announced that its savings and investments products provided up to 4% annual returns to customers in 2014, outpacing the returns provided by other competitive financial institutions in the UAE.

Providing a clear analysis for 2014, National Bonds revealed that its One Year Term Bonds offered 2.50% annual returns while the Savings Bonds provided 1.20% annual returns in comparison to other savings accounts in the UAE.

The longer the saving period for principal deposits held with National Bonds, the higher the annual returns. For instance, the total returns on saving for nine years with National Bonds amount to 56.81%, while saving for five years awards 13.82% in total annual returns. Savers investing AED100,000 and above enjoy 2.36% annual returns, while those saving amounts of AED10,000 and below receive 1.44% annual returns. National Bonds also offers the three year Step-up Bonds that provide an annual profit rate of 4%.

The tangible benefits offered by National Bonds have encouraged a significant number of people to enroll for its savings and investments programs. The company witnessed a 7% increase in the number of customers in 2014, totaling 786,000 customers from 200 nationalities. These customers enjoy the benefits of National Bond’s accounts such as building a substantial saving for the future, receiving competitive annual returns from the investment portfolio, and enjoying prizes and rewards that are offered by the company to all customers through its richest daily, weekly and monthly draws.

National Bonds is audited by the Dubai government’s audit department and is supervised by an independent fatwa and sharia supervisory board, in addition to external auditing entities.

Commenting on National Bonds’ successful programs, Mohammed Qasim Al-Ali, CEO of National Bonds, said: “National Bonds savings and investment programs are proving year-on-year to be the best of their kind in the market, providing a perfect platform for wise financial planning that ensures security and offers attractive returns. With banks back to lending, and inflation rates reaching 4.5% in the UAE, National Bonds is investing all efforts in adding additonal value to its existing bondholders and encouraging new customers who struggle to start their savings journey to enroll thus adopting a disciplined plan. We believe that sound financial planning protects both individuals and institutions from financial crises and debts.”

National Bonds allocates 94% of its investments within the UAE market as part of ongoing efforts to support the local economy and boost social and economic development in the UAE, a country that has been ranked first in the Arab world and third globally in 2014 for providing the best supportive environment to grow Islamic investments. National Bonds applies a balanced distribution of assets aiming to build a highly diverse investment portfolio to achieve the best returns with low risks. About 80% of the total assets in 2014 were income-generating assets, such as wakala deposits, sukuk, and yield generating real estate.

Al-Ali added: “According to the National Bonds Savings Index that we launched at the end of 2014, there is still a lot of work to be done to turn saving into a lifestyle practice in the UAE, given the fact that only two out of 10 people save regularly. Credit-card spending in the UAE amounted to AED11 billion in 2013, which means that a large portion of the UAE’s citizens and residents are yet to reach a level of financial maturity that provides them with stability and protects them from increasing dependence on debts and loans.

“Individuals need to be responsible and ensure financial stability for themselves, their families and even the national economy. Our role at National Bonds not only focuses on supporting the culture of saving, it also encourages new investments in Islamic economy sectors in order to deal with the current global challenges such as unemployment and poverty. It is indeed a matter of grave concern that half the world lives on less than two dollars a day.”

Licensed by the UAE Central Bank and fully-owned by the Investment Corporation of Dubai, Dubai government’s investment arm, National Bonds is committed to continuously improving its range of products and services through measuring the satisfaction level and understanding the needs of customers. According to the research done for the National Bonds, 74% of customers said that they are satisfied with the overall value that National Bonds adds to their lives, while 50% of the new customers said that they decided to place their savings with National Bonds based on recommendations from existing customers, and 66% expressed keenness to invest in a long term savings plan that offered an income loss protection.