Despite the coronavirus pandemic and its global economic implications, National Bonds, the UAE Sharia-compliant savings and investment company owned by the Investment Corporation of Dubai (the Dubai Government's investment arm), achieved excellent growth in its Investments in 2020. This achievement is partially attributed to the company's groundbreaking programs and services for bondholders.

National Bonds' investments rose by a whopping 13 % in 2020, to AED 8.8 billion, up from AED 7.8 billion in 2019. The company also retained its lead in terms of the returns to its bondholders last year.

A minimum return on investment (ROI) of 2.95 % was also declared for those with AED1 million or more in their accounts, making it the highest in the country. Meantime, the 1-year market EIBOR rate is 0.50%.

Those with assets ranging from Dh350,000 to Dh1,000,000 earned a minimum ROI of 2.45 %, those with Dh150,000 to Dh350,000 earned a minimum ROI of 1.80 %, and those with Dh100,000 to Dh150,000 earned a minimum ROI of 1%. A minimum ROI of 0.85 % was achieved on accounts ranging from Dh50,000 to Dh100,000. Furthermore, bondholders benefited from a higher return on investment thanks to National Bonds' robust incentive scheme, which distributed Dh35 million in incentives in 2020 (from Mudarib's internal funds).

Aside from earnings, the company's number of daily savers increased by 21% year over year in 2020, and digital revenues via its improved mobile app and website increased by more than 217% over the previous year. Since its founding, the company has given out 5.66 million prizes worth a total of Dh658 million to both expats and UAE people.

Khalifa Al Daboos, Chairman of National Bonds, shared his pride in the statistics. “With the COVID-19 pandemic, border controls, and lockdowns in most nations, last year was full of problems the world has never seen before, at least in the last few decades,” he said.

“Despite these obstacles, the business has grown significantly, owing to its strong base and sound strategy for providing optimal returns on our investments. These findings affirm our belief in the brand and its leadership position in the UAE and the region. This will also boost our bondholders' interest in saving with National Bonds, encouraging those who haven't started yet to do so as soon as possible. National Bonds is also dedicated to diversifying its portfolio and adhering to a conservative investment policy,” Khalifa Al Daboos said.

In terms of the effects of the Covid-19 pandemic on the savings rate, Al-Daboos claims that global restrictions have positively influenced the saving habit. “During this time, the rate of saving increased as a preventive measure for oneself and their families, individuals cut their expenses and start building their emergency savings during crises,” Khalifa Al Daboos added.

National Bonds' Group CEO, Mohammed Qasim Al Ali, praised the company for achieving tremendous growth in several fields. “Over the last few years, it has earned the confidence of both individual and institutional savers. The previous year was no exception: the firm raised its investments by 13%,” he said. “It has also aided in the adoption of the daily saving habit by more foreigners and Emiratis, resulting in a rise in bondholder trust.

“All of these are noteworthy milestones, but the one we are most proud of is the 217 percent rise in the percentage of digital sales generated through the enhanced mobile app,” says Mohammed Qasim Al Ali. This suggests that the organization has overcome the most daunting barrier on its path: technical and digital transformation. To meet savers' needs, the brand continues to introduce, innovate, and upgrade services, as well as endorse and provide constructive, integrated, and safe saving solutions."