150% surge in National Bonds sales in five months

The surge in sales in due to an increase in awareness on the value of savings among residents. (PATRICK CASTILLO)

National Bonds, the Shariah-compliant national savings scheme of the UAE, yesterday said its sales in the first five months of this year jumped 150 per cent to Dh1 billion against Dh409 million during the same period last year.

Growth from the beginning of the year shows an increase in customer numbers by 21 per cent and total volumes by 58 per cent.

Mohammed Qasim Al Ali, Chief Executive Officer of National Bonds Corporation, said the surge in sales was driven by the company's strategy to increase awareness of the value of savings among all UAE residents.

"The simplicity of investing in our bonds has made us a household name in the UAE. The savings habit is getting ingrained deeper in the UAE society as demonstrated by the growth in the number of bond sales in 2008 compared to the same period in 2007," he said.

Al Ali said the company's performance in 2007 has greatly strengthened investor confidence.

"Earlier this year, we disbursed an annual profit of 6.03 per cent, which is higher than that of any other comparable savings product in the market.

The key value proposition is that our bonds are priced as low as Dh10 and can be purchased from more than 300 locations in the UAE.

"We have invested in several key initiatives to enhance customer experience with National Bonds. Among them is an automation system that once implemented will immediately provide customers bond certificates at the time of purchase," said the CEO.

"This new system of immediate purchase will accelerate bonds' enrollment for the next draw. National Bonds is also looking at other convenient tools by offering customers alternate channels to purchase bonds from the comfort of their home or office," Al Ali said.