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24 April 2024

National Bonds announces annual profit rate of 7.07%

Mohammed Qasim Al Ali (SUPPLIED)_

By Staff Writer

National Bonds Corporation (NBC), a Shariah-compliant national savings scheme, has announced the highest annual profit rate of 7.07 per cent in the UAE on saving schemes for its bond holders in 2008.

It achieved annual profit rate of 6.03 per cent for its first financial year in 2007.

Bondholders posted the highest growth of 17.25 per cent in their profit rate in 2008 as compared to the previous year, along with the opportunity to win Dh5 million in 26,318 prizes every month.

In addition, NBC enables one bondholder to become a millionaire every month.

NBC CEO Mohammed Qasim Al Ali said: "Against the backdrop of a global economic slowdown, the highest return in 2008 has far exceeded peoples expectations for National Bonds as everyone's favourite place to save along with being the safest, innovative and most rewarding saving scheme in the region. The annual profit rate of 7.07 per cent is the highest return against any comparable savings scheme offered by any financial institution in the UAE, and reflects the impressive growth achieved by National Bonds in just over a period of two years since it was launched. Furthermore, we have also registered a 152 per cent increase in sales in 2008 over the previous year."

The firm has also secured 10 per cent of the UAE's population as its market share in reaching half a million bond holders from over 91 nationalities, a rise of 39 per cent over the previous year. Its total sales reached the Dh4 billion for 2008.

More young people are buying National Bonds, recording a 50 per cent increase in 2008 over 2007. Female customer segment also showed a remarkable increase of 40 per cent over the same period. However, institutes have by far been the customer segment that has seen major growth, registering a record 149 per cent increase in 2008 over the previous year.

The statistics show a 35 per cent increase in customers who are non-residents of UAE.