UAE millionaires investing where?

Majority of the millionaires made by National Bonds Corporation (NBC) are continuing to keep their prize money (Dh1 million) invested in the savings scheme, according to the company’s chief.

“Seventy five per cent of our millionaire draw winners keep their fund with us. And three of these millionaires have been lucky enough to win other millionaire draws,” Mohammed Qasim Al Ali, Chief Executive Officer, NBC, told Emirates 24|7.

Since its launch in 2006, the Shariah-compliant saving scheme has made nearly 140 millionaires.

 A look at NBC’s facebook page reveals that most bondholders complain of not winning any prizes and so looking to redeem their bonds.

“I understand their frustrations, but remember these critics have won on different fronts,” states Al Ali.

“They became regular savers so that is winning. They have got an annual profit, which is better than any other saving scheme in the country. But if one hasn’t won a prize, it that doesn’t mean he will never win in future.

“We understand people save for something and when that something happens such as paying education fees they will withdraw money. But they do come back. They invest again as they understand that NBC is one of their best options,” he asserts.

Earlier this week, NBC unveiled its new reward strategy, offering 1,440 daily rewards in Dh50 bonds, totaling Dh26 million in annual prize money to bondholders.  Of the total daily prizes, 200 have been reserved for minor bondholders, 200 for female bondholders and 200 for regular savers (direct debit arrangement).

Although NBC distributes nearly Dh46 million in annual prize money, for 2012, it announced an annual profit of 1.5 per cent, which was lower than the two per cent announced in 2011.

When asked about the low proft rate at the press conference, Al Ali had said: "We have to compare an apple to an apple. Our profit rate is higher than what the banks give on saving accounts."

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