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The number of regular savers in National Bonds; a unique UAE-based financial and Shariah-compliant investment company owned by the Investment Corporation of Dubai, the investment arm of the Government of Dubai, edged up to 14% in 2018 as compared to 2017. With savings up by about 18%, Dubai Bonds Customers received annual revenues that reached up to 4% for the third year in a row.
These results underline the company's goal that is focused on a strong and robust investment performance. This is clearly reflected in the revenue rate of up to 4%, which is a competitive rate and helps maintain, as well as develop, the employers' capital. It is also consistent with the company's investment strategy that aims to achieve balance and diversify income sources, as well as provide an opportunity for responsible low-risk investment.
According to data, the number of regular savers increased by 14% at the end of last year to hit 35.8k accounts compared to 31.4k at the end of 2017. Savings surged by 18% to amount to AED 448.8m as compared to the previous AED 381.7m.
The results show a remarkable surge of 12% in minor saver accounts. Accounts held by women increased by 13% to reach 37% of the total accounts on a year-on-year basis. Men's accounts surged by 14% as compared to 2017.
Data also showed an increase in the assets under management in the last year, which went up by about 6% to hit AED 7b. By the end of last year, the company had 480k accounts for individual and corporate customers. These increases are a direct result of the positive efforts achieved by the company in the past years.
According to the announced figures, the company distributed annual revenues of 2.06% among the 50k dirhams bondholders. Bondholders who hold bonds of AED 150k or above received an average revenue of 2.92%, while bondholders who hold bonds of +350k dirhams received average revenue of 3.52%.
Term bond revenues soared in comparison to 2017. The 3-month term bonds hit an increase of 2.65%, while the 6-month term bonds climbed up by 2.85%.
The revenues of 1-3 year term bonds started from 3% to 4%, while regular saving bonds recorded average revenues of 2.42%.
In terms of awards, the data showed that the company distributed more than 480 thousand awards during 2018, among 71.4 thousand customers, which amounted to +37m dirhams. The value of awards since the company's inception in 2006 amounted to 577.2m dirhams, distributed among 351 thousand customers, of whom 29% are UAE citizens.
Commenting on the data, Mohammed Qasim Al Ali, Chief Executive Officer of National Bonds, said that he was "happy with the positive results achieved in 2018, especially the competitive revenues brought to our clients for the third year in a row", pointing out that "The company measures its success based on the increase in saver numbers on an annual basis. This number has remarkably risen due to our programs and campaigns", said Mr. Al Ali.
"The increasing numbers of savers reflect the increased awareness and the spreading popularity of a savings culture. According to the Saving Index Report of 2018 to be issued soon, the UAE is in the lead in terms of the number of savers in the GCC. The report shows that more than 52% of respondents have a positive view on saving in the UAE", he said.
"The increasing minors’ savings accounts signal how parents have become more aware of the necessity of saving for a better future. This concept is repeatedly highlighted by National Bonds, given to the fact that children are the basis of a strong economy and society. Although they’re currently receiving pocket money, they will play the most important role in shaping the UAE’s future", he said.
"The parents' increasing awareness of the importance of saving has a significant impact on children, as they will become more aware of their spending habits and how to save money to create a brighter future for them and their country. This is our goal at National Bonds", said the National Bonds chief.
"The increase in the number of savers came from a variety of programs we launched; including the Employee Happiness Program which added more than 14,000 customers across 130 companies, and the opening of our new fully-equipped branch at Al Wasl, in Dubai. The mortgage program, namely the Casa Familia development project, was a significant contributor as well.
Casa Familia was announced by National Properties, the real estate arm of National Bonds. With one of the best mortgage programs in the UAE, the project has become the most attractive residential location in Dubai. National Properties sold 90% of the development project, which is a part of the Motor City Green Community, through its local award-winning finance lease program. The program enables the buyers to pay 10% of the real estate unit`s price during the construction phase and pay the remaining percentage over 10 years, after hand-over.
"Our vision for upcoming years is to expand the savings’ scope across the UAE. This expansion benefits the whole society as well as the UAE economy. We will commit to our strategic goals that are aimed at maintaining the customers' capital, supporting long-term economic development of the UAE and reducing investment risks in order to protect the interests of bondholders and contributors. This would ensure sustainability and promote customer confidence in the company and its programs.” said Mr. Al Ali indicating that, "The years to come will bear stunning investment offers and opportunities, as well as further success and excellence".
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