National Bonds, the UAE’s Shari’a-compliant savings and investment company, saw another strong year soaring to an investment portfolio of 13.7 billion dirhams ($3.7 billion) in 2022, higher by 15% compared to the previous year.
Customers’ financial well-being continued to evolve through National Bonds due to its wide range of savings and investment solutions, which have supported their future financial objectives, such as emergency funds and children’s education.
Customers’ positive experience also boosted investment growth in 2022 coming from flexible and convenient solutions that enhanced their returns and the value of their savings.
National Bonds outstanding growth in 2022 included individuals and institutions and remarkable returns given to the bondholders. The company’s performance is an important indicator of customers’ increasing confidence, making it the North Star in the field of savings in the UAE. This comes through navigating customers across diverse solutions and recalibrating their saving behavior toward a sustainable practice.
Read more: National Bonds launches second salary plan for UAE residents
Success in numbers
Given that National Bonds’ success is also measured by the maintained competitive earnings rewarded to customers, returns were up to 5% in 2022, which is among the highest rates in the UAE.
62% of customers have been with National Bonds for over 10 years, demonstrating their long-term loyalty which significantly contributed to the 15% growth in 2022.
In addition, the organization’s rewards program is the largest in the country, with a staggering AED 35 million in prizes, further rewarding customers on their savings behavior. For example, 66% of National Bonds regular savers saw a remarkable increase in their average returns in addition to the profit in 2022.
Growth drivers
The strong growth in 2022 was attributed to several pioneering ideas and solutions, such as the Golden Pension Plan, Global Savings Club, and Sukuk Al Waqf.
The Golden Pension Plan leverages the financial planning solutions provided by National Bonds to nationals and residents, to meet the increased demand from both employers and employees.
The plan saw a positive interaction and growing wholesale trend reflected through the demand by employers to register employees, as more than 10,000 employees have been enrolled in the program currently. Employers are also approaching the Golden Pension Plan scheme to explore its new solutions, ultimately leading to a change in the employees’ mindsets to plan ahead for their end-of-service.
Khalifa Al Daboos, Chairman of National Bonds, said: “During 2022, National Bonds continued to attract all segments of society through the various solutions provided to them. This reinforces the confidence of our customers, stakeholders, and community in National Bonds, reflecting a clear shift in mindsets regarding the saving habit. The outcomes have also shown resilience post-COVID-19 pandemic and its worldwide economic consequences. It is gratifying that we maintained a track record of continuous growth since 2006.”
“National Bonds has remained steadfast in its commitment to provide its customers with diversified plans, serving and guiding their goals for better financial stability, witnessed by our results in 2022. National Bonds will remain a major contributor to the happiness and prosperity of its customers in the UAE, through our constant and innovative saving solutions, helping secure the future of savers and their families alike,” he added.
“The growth in savings, during the last years, has demonstrated a remarkable shift in the culture of saving to become a daily practice, with more than 196 thousand transactions made so far”, he said.
Congratulating all savers in 2022, National Bonds’ Group CEO, Mohammed Qasim Al Ali, said: “Our organization has encouraged savings behavior through flexible solutions and rewards.”
“There is a strong demand in the market for flexible digital saving programs. Therefore, National Bonds continue to develop more innovative solutions in 2023, such as Level Up and Second Salary. These solutions will encourage consistent saving habits and improve our customers’ experience, UAE Nationals and residents alike, to set their future plans with us. Our growing and sustainable solutions support our customers’ preparations for emergencies and subsequently their comfortable retirement,” he added.
“I’m also pleased to mention that National Bonds have proven to boost inclusivity where women segment portfolio in 2022 increased by 14%,” he said.
Digital savings
The growth in 2022 was also driven by a constant digital transformation for seamless customer engagement, leading to an increase of 120% in digital savings last year compared to 2021. This was achieved through various convenient enhancements like instant account opening and interactive services to bring fun to the digital saving process.
Since its inception, National Bonds has created 206 millionaires and distributed approximately 2.47 billion dirhams in returns, including over 731 million dirhams as the total value of prizes.
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