Investment Portfolio Reaches AED 15.8 Billion with 22% Growth in 2024

by Dubaiforum
3 minutes read

In a ground-breaking development within the financial landscape of the United Arab Emirates, National Bonds announced that investments by Sukuk holders reached a record AED 15.8 billion (approximately US.2 billion) by the conclusion of 2024. This figure denotes a remarkable growth of over 22 percent from AED 12.9 billion at the close of 2023, underscoring a burgeoning trend in structured savings and financial stability.

The data reveals that the significant increase in investments is attributable to a growing base of regular savers and the rising adoption of digital solutions. This shift is aligned with the UAE’s broader vision of bolstering the financial well-being of its populace and institutions, while concurrently promoting sustainability. In this era of rapid digitalization, National Bonds has underscored the impact of technology in facilitating easier access to savings programs.

In terms of returns, the company reported a distribution of approximately AED 588 million to Sukuk holders during 2024. Notably, some savers benefited from attractive returns of up to 4.75 percent, with the overall average standing at about 4.02 percent. Such returns have evidently enhanced investor confidence and engagement, reflecting the organization’s commitment to offering lucrative saving opportunities.

The annual results, presented today, highlight a staggering 51 percent surge in the number of regular savers. This statistic not only illustrates the increasing appetite for structured savings plans but also echoes the community’s desire for financial empowerment. National Bonds is keenly focused on crafting a sustainable savings ecosystem that meets the financial needs of individuals while addressing the psychological barriers that often deter saving behaviors.

Mohammed Qasim Al Ali, the Group CEO, elaborated on the strategic initiatives that have underpinned this growth. “At National Bonds, we are dedicated to proactively understanding the future financial needs of both individuals and businesses. By analyzing emerging trends and customer expectations, we are able to engineer products and solutions that resonate with the financial landscape of tomorrow,” he stated. These proactive measures have not only facilitated a commendable 22 percent growth in the investment portfolio but have also fostered enhanced consumer confidence, as reflected in the swelling number of regular savers.

Central to National Bonds’ strategy is its enhanced mobile application, which has played a significant role in promoting digital engagement. The newly upgraded platform contributed to a 41 percent rise in digital savings in 2024 compared to the previous year. The integration of technology in personal finance management is a reflection of changing consumer habits, particularly as younger generations prioritize user-friendly digital platforms.

Additionally, National Bonds is set to launch an innovative end-of-service benefits program in collaboration with the Ministry of Human Resources and Emiratisation (MOHRE), further solidifying its commitment to the financial health of employees across the region. This program, which will roll out later this year, seeks to optimize financial returns for employees, illustrating a proactive engagement with employers in fostering a culture of saving.

Discussing the company’s investment strategy, Al Ali revealed that National Bonds employs a low-to-medium risk approach to safeguard capital, which is increasingly pertinent given the current global rise in interest rates. Specifically, the firm has increased its bank deposits to account for 20 percent of its portfolio. Furthermore, it strategically allocates 30-40 percent to fixed-income assets, 10-12 percent to listed equities, 8 percent to private equity investments, and 20 percent to real estate, inclusive of ready properties and development projects.

Conclusively, the financial performance and strategic initiatives of National Bonds reflect an evolutionary shift in the UAE’s savings culture, catalyzed by technological advancements and a growing consciousness around financial literacy. As the company continues its trajectory of growth and innovation, it exemplifies a model for sustainable financial practices that may serve as a benchmark for similar institutions in the region and beyond.

The developments at National Bonds encapsulate a significant moment in the UAE’s economic journey, heralding an era of increased financial inclusivity and empowerment.

Tags: #BusinessNews #EconomyNews #UAE

You may also like

About Dubai Forum

Dubai Forum: your daily source for the latest news from Dubai, the United Arab Emirates, and the broader Middle East region. Our coverage includes updates on people, lifestyle, communities, business, startups, and finance, keeping you informed on all facets of the dynamic Dubai scene. #Dubaicommunities #people #travel #startups #DubaiForum