UAE National Bonds sees 22 percent growth, portfolio hits $4.3 billion in 2024

As of the end of 2024, investments held by holders of National Bonds' Sukuk (Islamic bonds) reached AED 15.8 billion (approximately $4.3 billion), an increase of over 22% compared to AED 12.9 billion at the end of 2023. This significant growth reflects investors' confidence in Sukuk and National Bonds' success in attracting investment, demonstrating the increasing appeal of Sharia-compliant financial products.

National Bonds stated that the increase in investment was primarily attributed to the growing number of regular savers and the increasing popularity of digital solutions. In 2024, the company distributed approximately AED 588 million in returns to Sukuk holders, with some savers achieving returns as high as 4.75%, and the overall average return rate remaining stable at 4.02%, highlighting the attractive yields offered to investors.

National Bonds' annual performance showed a 51% increase in the number of regular savers, highlighting the growing demand in society for structured savings plans. This trend is highly aligned with the UAE's vision of enhancing the financial well-being of individuals and institutions and pursuing long-term sustainable development. Furthermore, National Bonds' development and upgrade of its mobile application last year also contributed to a 41% increase in digital savings in 2024 compared to the previous year.

In 2024, National Bonds became one of the first companies to partner with the UAE's Ministry of Human Resources and Emiratisation (MOHRE) to launch an end-of-service benefits program. The program is expected to launch this year, and the company is actively communicating with employers seeking to provide their employees with optimal financial returns. The launch of this program aims to provide employees with more comprehensive benefits and enhance companies' ability to attract and retain talent, contributing to a more secure financial future for the workforce.

Mohammed Qasim Al Ali, Group CEO of National Bonds, said: "At National Bonds, we actively understand 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 future financial environment. This forward-looking approach has led to a 22% year-on-year growth in our investment portfolio, while the 51% increase in the number of regular savers reflects customers' confidence in our products." He further added, "We are focused on building a future-proof savings ecosystem that not only meets financial needs but also addresses the psychological barriers to saving, enabling customers to develop positive saving habits with confidence." He also emphasized that the company's strategy is not limited to financial considerations, but also emphasizes saving behavior and motivation, with an annual rewards program worth AED 36 million and various tangible incentives designed to inspire a disciplined savings culture.

Regarding National Bonds' investment allocation, Al Ali told the Emirates News Agency (WAM) that the company adopts a low-to-moderate risk strategy to ensure capital protection. Given rising global interest rates, the company increased its bank deposits to 20% in 2024. In addition, 30-40% of the portfolio is allocated to fixed income assets, 10-12% to listed equities, 8% to private equity investments, and 20% to real estate, including ready properties, real estate development, and portfolios. Regarding profit distribution, Al Ali confirmed that National Bonds distributed AED 588 million to Sukuk holders in 2024, with some categories achieving returns as high as 4.75%, while the average return rate remained around 4.02%.