National Bonds, the UAE Sharia-compliant savings and investment company, said that its investments increased by 13% in 2020 to reach AED8.8 billion ($2.39 billion), up from AED7.8 billion in 2019.

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 AED350,000 to AED1,000,000 earned a minimum ROI of 2.45%, from AED150,000 to AED350,000 earned a minimum ROI of 1.80%, those with AED100,000 to AED150,000 enjoyed a minimum ROI of 1%, while accounts ranging from AED50,000 to AED100,000 reached a minimum ROI of 0.85%.

In addition, bondholders also received enhanced return on investment through National Bonds’ extensive reward program which distributed a staggering AED35 million worth of rewards during 2020,(From Mudarib’s own funds).

Aside from profits, the company’s number of regular savers rose by 21% year-on-year in 2020; while the digital sales made via its enhanced mobile application and website climbed by more than 217% compared to the year before. Since its inception, the company has distributed 5.66 million prizes worth AED658 million rewarded to both Expats and UAE nationals.

National Bonds’ Chairman, Khalifa Al Daboos, said: “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.”

“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.  

“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 behaviour. “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”.

National Bonds’ Group CEO, Mohammed Qasim Al Ali, said: “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%. 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% increase in the percentage of digital sales made through the enhanced mobile app. This figure means that the company has managed to meet the most difficult challenge of its journey: Technological and digital transformation. The brand is continuing to launch, innovate and update programs to meet savers’ expectations. The new programs are part of the company’s strategy to support and provide proactive, integrated and secure saving solutions,” he concluded.- TradeArabia News Service