April 22, 2024 12:18 am
“National Bonds” plans to introduce a savings fund for “end of service” benefits

In 2024, National Bonds is planning to launch a savings fund that will target private end-of-service benefits for UAE employees. The CEO of the company, Muhammad Qasim Al Ali, announced this during a press conference to announce their financial results for the year 2023. According to Al Ali, a survey conducted by the company showed that 82% of employees in the UAE are in favor of employers investing in their end-of-service benefits. The fund is expected to be launched in the second quarter of 2024 pending necessary approvals from authorities such as the Ministry of Labor and the Securities Commission.

During the same press conference, National Bonds reported that their portfolio grew by 2% to 14 billion dirhams compared to the previous year. Sales also increased by 25%, reaching 6.4 billion dirhams. The value of distributions since the establishment of National Bonds reached 2.9 billion dirhams, with 219 winners of the Million Dirham Prize receiving a total of 758 million dirhams in prizes.

Al Ali attributed National Bonds’ strong performance in 2023 to a growing awareness among citizens and residents about the importance of saving, especially after the Covid-19 pandemic. He noted that there was an increase in new investors by 215%, monthly savings by 122%, and women’s participation in savings programs by 87%. The highest annual investment return for clients was recorded at 5.84%.

In addition to its savings business, National Bonds also has a real estate development and investment arm called the National Real Estate Company. Al Ali announced during his press conference that Tower A of their “399 Hills Park” project has been sold successfully and will now be used as an income-generating asset for leasing purposes. Two new real estate projects with an investment value up to AED800 million are set to be announced soon, providing around AED350 units for potential investors.

Overall, National Bonds’ strong performance in both its savings and real estate businesses demonstrates its commitment to providing valuable services and opportunities for individuals seeking financial stability and growth in Dubai’s dynamic economy.

In summary, national bonds recently announced plans to launch a savings fund targeting private end-of-service benefits for UAE employees who want their employers to invest in them during their retirement period. This will be launched pending approval from relevant authorities such as Ministry of Labor and Securities Commission within second quarter

Leave a Reply