7.07% - National Bonds announces the highest annual profit rate in the UAE for its bond holders

Mr. Mohamed Qasim Al Ali, CEO, National Bonds Corporation

National Bonds total bond sales rose to 4 billion and half a million customer base in 2008.

Dubai 24 January 2009: National Bonds Corporation PJSC, the innovative  Sharia compliant National Savings scheme, has announced the highest annual profit rate of 7.07% in the UAE on saving schemes for its bond holders for a second consecutive year in 2008.

In spite of a gloomy global economic outlook, National Bonds has succeeded in achieving the highest returns for 2008 compared to the annual profit rate of 6.03 percent achieved at the end of its first financial year in 2007.

Bondholders enjoyed the highest growth of 17.25% in their profit rate in 2008 as compared to the previous year, along with the opportunity to win worth 5 million dirhams in 26,318 prizes every month. In addition National Bonds Corporation enables one bondholder to become a millionaire every month. National Bonds can be purchased over 400 outlets a cross the UAE with a minimum saving of 100 Dirhams. 
 
Announcing the annual profit disbursement, Mr. Mohamed Qasim Al Ali, the Chief Executive Officer of National Bonds Corporation, 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% is the highest return on 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% increase in sales in 2008 over the previous year.

Remarkably with the achievements of 2008, National Bonds Corporation PJSC has also succeeded in securing 10% of the UAE’s population as its market share in reaching half a million bond holders from over 91 nationalities, a significant 39% percent increase over the previous year. Its total sales reached the 4 billion Dirham’s mark for 2008 and National Bonds Corporation is sure to deliver its promise of becoming “everyone’s favourite place to save” for 2009 and onwards”.
Interestingly more young people are banking on National Bonds, with this customer segment recording a 50% increase in 2008 over 2007. Our female customer segment also showed a remarkable increase of 40% over the same period.  However, institutes have by far been the customer segment that has seen major growth, registering a record 149% increase in 2008 over the previous year.
Illustrating the fact that National Bonds has become the most attractive savings scheme for people from all nationalities and countries, the statistics show a 35 % increase in customers who are non-residents.  
Mr. Al Ali added: “We are committed to nurturing a savings culture by encouraging people to save in National Bonds and by re-investing their savings in development initiatives in the UAE. As a Sharia compliant institution, National Bonds Corporation adheres to strict Shari’a guidelines regarding its investments, while at the same time focusing on generating the highest returns for its bondholders”.
The Mudaraba fund is being invested back into the UAE economy through its initiatives like Taleem an educational initiative to raise the level of education in the region, BCS a Strata Management company specializing in property management, its property development projects, Skycourts and Flamingo Creek and Souk Extra the community shopping chain. 

- ends -

About National Bonds Corporation:
A private joint stock shareholding company, National Bonds Corporation (NBC) is a Dubai-based entity that was launched in March 2006. The Government of Dubai holds a 50 per cent ownership in the company with each of its local shareholders, comprising Dubai Bank, Dubai Holding and Emaar Properties, holding 16.6 per cent ownership respectively. National Bonds Corporation is Sharia compliant, with a dedicated Sharia Board to oversee all financial aspects, including product-related operations and investments.

Since its launch in 2006, National Bonds has come up with various successful initiatives in community development. In December 2006, it launched “Skycourts,” the elegant and affordable freehold residential community in the heart of Dubailand Residence Complex. In 2007, National Bonds launched National Properties, a wholly owned, full-service real estate subsidiary that offers distinctive homes and lifestyle options to the multinational UAE community. They also launched Taaleem PJSC, an initiative aimed at raising quality standards in the region’s education sector.

About National Bonds:
National Bonds is the National Saving Scheme of the UAE that provides UAE nationals, UAE residents and non-residents over the age of 16 with a credible, safe and Sharia-compliant savings opportunity.  Minors can also own National Bonds, provided the bonds are purchased by the parent/guardian. Each bond costs AED 10, with a minimum purchase of AED 100; National Bonds can be purchased from over 400 outlets across the UAE, including exchange houses and banks.

National Bonds offers all participants the opportunity to win prizes worth a total of AED 5 million including a first prize of AED 1 million in monthly draws. The programme is based on the Islamic principle of Mudaraba, whereby at the end of the financial year 20 per cent of the profits made by the National Bonds Corporation (NBC) will be distributed among bondholders.
For more information on National Bonds, please visit www.nationalbonds.ae. Or call Toll free 800-BONDS (26637)