Savings

Emirates News Agency – Domestic bond growth marks significant shift in savings behavior in UAE

DUBAI, 7th April, 2022 (WAM) — National Bonds, the United Arab Emirates Sharia-compliant savings and investment company owned by the Investment Corporation of Dubai, saw its investments increase by 36% to 11, AED 89 billion in 2021, indicating positive accelerated growth of the savings culture in the UAE.

The company recorded a 64% increase in sales, attributing the growth to its innovative savings programs and services, as well as a growing awareness of the benefits of saving with national bonds, both among nationals than among residents.

National Bonds continued its tradition of delighting clients by delivering exceptional returns to savers despite an environment in 2021 that offered low rates.

Savers have earned returns of up to 3.33% on their savings; one of the highest in the region. Regardless of the size of their savings, all National Bond customers enjoyed healthy returns in 2021. Bondholders also won AED 36.9 million in draw prizes and received additional bonuses from the funds of the Mudarib, depending on their amount invested, their duration and their savings behavior.

So far, long-term national bond savers, who have been with the company since 2006, have earned 64.11% cumulative returns on their savings. The company is also celebrating the success of its digital transformation, with a 62.4% increase in mobile digital savers thanks to the fast, seamless onboarding and operational fluidity it provides.

Commenting on the company’s outstanding performance in 2021, Khalifa Al Daboos, Chairman of National Bonds, said: “The growth of National Bonds is a direct reflection of changing mindsets around the habit of saving. We are pleased to see that more and more people are returning to the roots of sound, low-risk saving to ensure their financial security. National Bonds was founded with a vision to help everyone create and share wealth, and to uplift others, thereby creating financial well-being for the citizens and residents of the UAE. Our key mission is to relentlessly spread the culture of savings in line with the vision of our leadership, meeting the evolving needs of our customers through innovative products and digital solutions.”

Congratulating savers on their extraordinary earnings in 2021, National Bonds Group CEO Mohammed Qasim Al Ali said, “We are very pleased to share the news of an exceptional year’s profit distribution with National Bonds savers. pace in 2021, it is encouraging to see bondholders across all segments able to reap the benefits of a healthy return on investment (ROI) with domestic bonds.

“Accessibility and our efforts to encourage equal opportunity across all segments have also proven to drive inclusivity. I am delighted to see that women now make up 41% of National Bonds total customer base. with junior savers increasing by 9%, it’s equally exciting to see young people choosing to save more.”

“The company has achieved impressive growth, thanks to its constant innovation efforts led by strong leadership. This will build trust with our clients and establish National Bonds as the go-to driver for savings and investment in the UAE” , he added.