The number of savers in the National Bonds savings scheme, rose 23 per cent last year to 740,000 as the company broadened its investor base to capture more blue collar workers.
The Sharia-compliant investment scheme said it had changed its reward structure to offer 515,223 prizes worth Dh42 million "from the company's own funds as daily, weekly, monthly, and annual dividends to bondholders".
National bonds paid out returns of up to 2.89 per cent last year, it said. It did not disclose the average or lower limit of the payments. Assets in which the savings scheme is invested include the Dh1.6 billion Skycourts residential development in Dubailand and M’Sharie, the Dubai Investments-owned private equity investor. Other holdings are spread across property, fixed income instruments and other asset classes.
Returns are based on the amount held, the time period and the frequency of contributions.
In April, the company lowered its threshold for entry to the savings scheme to attract more blue collar workers.
"There are four million employees in the country, 75 per cent of whom earn around Dh1,000 a month. It's a sector we felt was always neglected," said Mohammed Al Ali, the chief executive of National Bonds, in an interview with The National in April.
“When we started National Bonds the minimum subscription was Dh100 and when we increased to Dh3,000 we realised we isolated small savers,” he said.
The total number of female savers rose 18 per cent last year, when compared with 2012, while the total number of male savers rose 21 per cent over the same period. Minor bondholders rose 40 per cent last year.
A Dh1m cash prize was awarded in the first week of every month, as well as the weekly rewards of two BMW luxury cars, two gold bars dedicated for female bondholders and school tuition fees allocated to two lucky minors.
National Bonds is owned by Investment Corporation of Dubai, the investment arm of the Dubai Government.
halsayegh@thenational.ae
Follow us on Twitter @Ind_Insights
