National Bonds Reports AED 15.8 Billion Investment Portfolio Growth Of 22% In 2024

National Bonds reported a significant rise in investments by Sukuk holders, reaching AED15.8 billion (US$4.2 billion) by the end of 2024. This marks a growth of over 22 percent from AED12.9 billion at the close of 2023. The increase is attributed to more regular savers and the adoption of digital solutions, according to National Bonds.

The company distributed around AED588 million in returns to Sukuk holders for 2024. Some savers received up to 4.75 percent, while the average return rate was 4.02 percent. This reflects a strong performance in their investment portfolio, driven by strategic financial planning and customer trust.

National Bonds highlighted that enhancing its mobile application last year led to a 41 percent rise in digital savings in 2024 compared to the previous year. This development aligns with the UAE's vision of improving financial well-being among individuals and institutions, aiming for long-term sustainability.

The annual results revealed a 51 percent surge in regular savers, indicating a growing interest in structured savings plans within the community. This trend underscores the increasing demand for financial products that cater to both immediate and future needs.

In terms of investment distribution, National Bonds maintains a low-to-medium risk strategy to protect capital. With global interest rates rising, bank deposits increased to 20 percent in 2024. Additionally, fixed-income assets account for 30-40 percent of the portfolio, listed equities for 10-12 percent, private equity investments for 8 percent, and real estate for 20 percent.

Real estate investments include ready properties, real estate development, and investment portfolios. This diversified approach ensures stability and potential growth across various sectors.

End-of-Service Benefits Programme

In 2024, National Bonds introduced end-of-service benefits programmes in collaboration with the Ministry of Human Resources and Emiratisation (MOHRE). The programme is set to launch this year, engaging employers seeking optimal financial returns for their employees.

The initiative reflects National Bonds' commitment to providing comprehensive financial solutions that address both current and future needs of businesses and individuals.

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."

Al Ali further noted that their strategy is not just about finances but also focuses on savings behaviours and motivations. An annual rewards program worth AED36 million aims to foster disciplined saving habits among customers.

The company's foresight has contributed to a 22 percent year-on-year growth in its investment portfolio. The increase in regular savers demonstrates customer confidence in National Bonds' offerings.

The focus remains on building a future-ready savings ecosystem that meets financial needs while addressing psychological barriers to saving. This empowers customers to adopt positive saving behaviours confidently.

With inputs from WAM