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National Bonds distributes 2.89% profit for 2013

By Staff

National Bonds Corporation (NBC), the leading shari’a-compliant savings and investment company in the UAE, has announced a 23 per cent increase in the number of savers in 2013 as compared to 2012, with registered bond-holders climbing to 740,000 across 200 diverse nationalities.

In May 2013, National Bonds Corporation announced a new rewards structure that positioned it as the richest rewards program in the Middle East. The initiative saw NBC giving away 515,223 prizes totaling Dh49 million from the company's own funds (the Mudareb) as daily, weekly, monthly, and annual dividends to bond-holders.

The value of investments among regular savers reached an astonishing 100% in the 2012-2013 period, while the total number of companies participating in the National Bonds Employee Saving Program increased by 67% during 2013. NBC has also announced a distribution of returns of up to 2.89% for 2013 from the Mudaraba fund.

Additionally, NBC witnessed a noticeable increase in the number of individual bond-holders saving through bond certificates across different categories in 2013, with the total number of female bond-holders increasing by 18% and the total number of male bond-holders rising by 21%. The total number of minor bondholders also grew by 40% in comparison to 2012. The number of UAE national bondholders registered an increase by 18% over 2012, validating the increasing awareness on the importance of regular savings within the country.

The NBC rewards included the Dh1 million cash prize in the first week of every month, as well as the weekly rewards of two BMW luxury cars, two gold bars dedicated for female bondholders and school tuition fees allocated to two lucky minors. Additionally, the new rewards structure offered a cash award of Dh50 for every minute of every day. Of the corresponding 1,440 daily cash awards, 200 each were reserved for female and minor bond-holders while another 200 are allocated to regular savers holding either a direct debit arrangement with their respective banks or a payroll deduction arrangement as part of the Employee Savings Program.

Mohammed Qasim Al Ali, CEO of National Bonds Corporation, said: “2013 proved to be a milestone year that saw National Bonds registering a number of successes across services. As an acknowledged pioneer in savings and investments in the UAE, NBC is particularly committed to promoting the importance of building a secure financial future among the public in the country. We achieved this objective through delivering a range of educational programs and awareness campaigns on financial literacy across a number of government agencies and educational institutions in the UAE. Thanks to our efforts, we have been able to offer our bond-holders attractive prizes as well as compound annual returns averaging 57% between 2006 and 2013.”

Al Ali added: “We are pleased to see a positive trend in people’s inclination to save. Through our continuous efforts, we hope to speed up this momentum and provide all the necessary tools to help our bond-holders carve a stable financial future for themselves and their families. This in turn supports our ultimate vision of shaping a better tomorrow equally for locals and residents of UAE.”

National Bonds, which is licensed and regulated by the UAE Central Bank, provides UAE nationals, UAE residents and non-residents with a credible and safe savings opportunity. Minors can also own National Bonds certificates, provided the bonds are purchased by their parent/guardian. Each bond costs Dh10, with a minimum purchase option of Dh100.