National Bonds, a leading savings and investment firm, has announced an unprecedented return of up to 5.84% on saving bonds for the year 2023, marking the highest return in the company’s history. This significant announcement was made during a press conference on Tuesday, underlining the firm’s success and robust growth in the savings sector.
The company revealed that it offered an average return of 4.2% to its investors for 2023. In a detailed breakdown of the returns, residents who invested more than Dh1 million in saving bonds received a 5.84% return, while those with investments between Dh350,000 and Dh1 million received 4.22%. This tiered return system highlights National Bonds’ commitment to rewarding its investors proportionally to their investment levels.
National Bonds has seen remarkable growth in its investment portfolio, which crossed Dh14 billion, with a distribution of Dh2.9 billion in profit payouts and prizes as of December 2023. This growth is further accentuated by a staggering 215% increase in new savers in 2023 compared to the previous year, indicating a growing trust and interest in the firm’s financial instruments.
On March 27, National Bonds introduced the innovative “Eibor Plus” scheme, which aligns with the Emirates Interbank Offered Rate (Eibor). This scheme provides investors with an expected return of 0.5% above the Eibor’s annual performance, making it an attractive investment option. The scheme requires a minimum investment of Dh25,000 and offers investors the flexibility to choose from Eibor-linked Term Sukuk ranging from 6 to 36 months.
National Bonds’ investment portfolio is well-diversified, with the highest exposure to fixed-income assets at 43%, followed by allocations in real estate, money markets, listed equities, and alternatives. Geographically, the firm’s investments are predominantly in the UAE (55%), with significant positions in international markets (33%) and the GCC region (excluding UAE).
Khalifa Al Daboos, chairman of National Bonds, expressed optimism about the future, citing the momentum generated in 2023 and the UAE’s ambitious economic initiatives as catalysts for further growth. Mohammed Qasim Al Ali, Group CEO of National Bonds, reiterated this sentiment, highlighting the company’s dynamic range of programmes, rewarding prizes, and financial literacy efforts aimed at empowering individuals and organizations toward sound financial planning.
This milestone achievement by National Bonds reflects not only its robust performance but also underscores its role in enhancing financial awareness and retirement planning in the UAE, aligned with the nation’s broader economic objectives.
