Dubai: National Bonds announced on Wednesday that its savers have been offered up to 4 per cent in annual returns for 2016, unchanged from a year earlier.
The 4 per cent growth, however, does not apply across the board, as actual earnings vary depending on the amount of savings held.
Those that have invested more than Dh50,000 in bonds were allotted an average of 1.76 per cent return, while the ones with bigger savings benefit from higher profits. For savers with bonds valued at Dh150,000 or more, a 2.43 per cent profit was distributed, while those who have a balance of more than Dh350,000 enjoyed 3.37 per cent in profits.
Maria, a Dubai-based expatriate, for example, received less than 4 per cent (Dh92) on her more than Dh25,000 worth of savings certificates purchased years ago, although her total returns since joining National Bonds has so far reached Dh2,000. “But that’s a small amount when you consider that I have been holding bond certificates for about half a decade now,” she says.
National Bonds’ three-year Term Sukuk granted 3 per cent return, while Step-Up bonds offered 4 per cent.
The sharia-compliant investments company admitted that 2016 was indeed a challenging year, but added that its financial results remained impressive. “2016 brought a multitude of challenges due to declining oil prices and market volatility that raised investor concerns and impacted their financial decisions,” the company said in a statement.
“However, thanks to the low-risk, capital preservation investment strategy adopted by the company, the year also saw solid growth and impressive financial results that reinforce the company’s steady progress over the past few years.”
The company also reported a strong uptake among UAE nationals, with the number of Emirati minors holding bonds surging by 99 per cent. The number of Emirati bondholders went up by 80 per cent, while their male peers registered a 78 per cent growth.
More expatriates joined National Bonds, as well, with minors registering a 95 per cent growth, followed by men (88 per cent) and women (74 per cent).
“We measure our success by the strategic results we achieve throughout the year in terms of attracting more savers and investors through innovative plans that provide long-term returns with low risks. Our investments, the majority of which are within the UAE, ensure a sound and sustainable contribution to the local economy, society and the environment,” said Mohammed Qasim Al Ali, Chief Executive Officer of National Bonds.
