National Bonds' investment portfolio surges to $4.3bln with 22% growth in 2024
Investments by Sukuk holders at National Bonds reached a record level of AED15.8 billion (US$4.2 billion) by the end of 2024, reflecting a growth of more than 22 percent compared to AED12.9 billion at the end of 2023.
According to National Bonds, this growth is linked to the increasing number of regular savers and the adoption of digital solutions.
The company distributed approximately AED588 million in returns to Sukuk holders for the year 2024, with some savers earning up to 4.75 percent, while the overall average return rate stood at 4.02 percent.
The annual results of National Bonds, announced today, showed a 51 percent increase in the number of regular savers, highlighting the growing demand for structured savings plans in the community. This trend aligns with the UAE's vision of enhancing financial well-being among individuals and institutions while striving for long-term sustainability.
National Bonds emphasized that the development and upgrade of its mobile application last year contributed to a 41 percent increase in digital savings in 2024 compared to the previous year.
In 2024, National Bonds became one of the first companies to offer end-of-service benefits programmes in partnership with the Ministry of Human Resources and Emiratisation (MOHRE). The programme is set to launch this year, with the company actively engaging with employers seeking optimal financial returns for their employees.
Mohammed Qasim Al Ali, Group CEO, said, '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 approach is not solely financial but also focuses on savings behaviours and motivations. The annual rewards program worth AED 36 million, along with other tangible incentives, aims to inspire a disciplined saving culture.
Regarding the distribution of National Bonds' investments, Al Ali told Emirates News Agency (WAM) that the company maintains a low-to-medium risk strategy to ensure capital protection. With the global rise in interest rates, the company increased its bank deposits to 20 percent in 2024. Additionally, 30-40 percent of the investment portfolio is allocated to fixed-income assets, 10-12 percent to listed equities, 8 percent to private equity investments, and 20 percent to real estate, which includes ready properties, real estate development, and investment portfolios.
On profit distributions, Al Ali confirmed that National Bonds distributed AED 588 million to Sukuk holders in 2024, with some categories receiving returns of up to 4.75 percent, while the average return stood at approximately 4.02 percent.
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