Investments by Sukuk holders at UAE’s National Bonds reached a remarkable level of AED15.8 billion ($4.3 billion) by the end of 2024, showcasing a growth of over 22 percent compared to AED12.9 billion at the end of 2023.
Growth linked to savers and digital solutions
According to National Bonds, this growth is attributed to the rising number of regular savers and the increasing adoption of digital solutions.
The company allocated approximately AED588 million in returns to Sukuk holders for the year 2024, with certain savers earning as much as 4.75 percent, while the overall average return rate settled at 4.02 percent.
The annual results of National Bonds indicated a 51 percent increase in the number of regular savers, underscoring the heightened demand for structured savings plans within the community. This trend aligns seamlessly with the UAE’s vision of enhancing financial well-being among individuals and institutions while pursuing long-term sustainability.
Enhancement of digital savings through mobile application
National Bonds highlighted that the development and upgrade of its mobile application last year led to a 41 percent rise in digital savings in 2024 compared to the preceding year.
In 2024, National Bonds emerged as one of the pioneering companies to introduce end-of-service benefits programs in collaboration with the Ministry of Human Resources and Emiratisation (MOHRE). The program is scheduled for launch this year, with the company actively engaging employers who seek optimal financial returns for their employees.
Read more: National Bonds launches second salary plan for UAE residents
Proactive approach to understanding customer needs
Mohammed Qasim Al Ali, group CEO, stated, “At National Bonds, we take a proactive approach to understanding the future needs of individuals and businesses. By carefully assessing emerging trends and customer expectations, we are able to create products and solutions that align with the financial landscape of tomorrow. This foresight has contributed to a 22 percent year-on-year growth in our investment portfolio, while the 51 percent increase in regular savers reflects the confidence our customers place in our offerings. We focus on building a future-ready savings ecosystem that not only meets financial needs but also addresses the psychological barriers to saving, empowering customers to adopt positive saving behaviours with confidence.”
He further emphasized that the company’s strategy extends beyond financial considerations and also emphasizes savings behaviours and motivations. The annual rewards program valued at AED 36 million, along with various tangible incentives, aims to inspire a disciplined saving culture.
Investment distribution strategy
Regarding the allocation of National Bonds’ investments, Al Ali informed Emirates News Agency (WAM) that the company adopts a low-to-medium risk strategy to ensure capital protection. In light of the global rise in interest rates, the company increased its bank deposits to 20 percent in 2024. Furthermore, 30-40 percent of the investment portfolio is dedicated to fixed-income assets, 10-12 percent to listed equities, 8 percent to private equity investments, and 20 percent to real estate, which encompasses ready properties, real estate development, and investment portfolios.
On the topic of profit distributions, Al Ali affirmed that National Bonds distributed AED 588 million to Sukuk holders in 2024, with certain categories achieving returns of up to 4.75 percent, while the average return remained around 4.02 percent.
