It's never too late to begin a savings programme, although the earlier the better should be the maxim for everybody.
To kick-start your savings and a chance to clear your loans, National Bonds Corporation has launched a campaign to help new and current bondholders to live a "debt-free life". The 14-week campaign, which ends on December 31, is designed to encourage a culture of regular savings in the UAE.
"The more we interact with our customers, whether through surveys, focus groups or even face-to-face meetings, the more we see a shift in their attitude towards saving," Mohammad Qasim Al Ali, the chief executive of National Bonds Corporation, said on the company's website. "Thanks to the prevailing economic conditions, people now understand the value of savings and the security it brings." The Sharia-compliant company says existing bondholders or new customers who deposit a minimum of Dh1,000 in National Bonds will automatically enter an additional weekly draw to win Dh100,000 to help pay off their debts. It adds that customers who increase their savings by Dh5,000 will enter a grand draw on January 1 to win one of five Mini Coopers.
"Through this campaign, we hope to not only help the lucky winners to clear their loans and begin a responsible saving strategy, but also to ensure that our other customers are properly rewarded for regular saving and take a bold step to kick off their own savings plans," Mr Al Ali said. National Bonds, which is owned by the Government of Dubai, Emaar Properties, Dubai Bank and Dubai Holding, is also planning to introduce savings plans for women and retirement funds for the county's 6.5 million foreign workers, according to a report by Bloomberg this week.
With about Dh5 billion under management, National Bonds invests in Islamic money markets, sukuks, income-generating real estate and in UAE-based private equity companies and stocks, Bloomberg said. While National Bonds does not give guidance on its profit rates, bondholders in 2008 earned an annual return of 7.07 per cent and 6.03 per cent in 2007. The annual return rate last year dropped to 3.54 per cent on the back of falling asset values.
National Bonds certificates can be bought at nearly 560 outlets nationwide, including Emirates Post offices, exchange houses and banks. Each bond costs Dh10 and the minimum purchase is Dh100.