National Bonds reports record AED 15.8 billion in sukuk investments for 2024

National Bonds saw a significant rise in sukuk investments, reaching AED 15.8 billion ($4.2 billion) by the end of 2024, marking a 22% increase from AED 12.9 billion in 2023. The growth was driven by a surge in regular savers and increased adoption of digital financial solutions, according to the Emirates News Agency.

The company distributed AED 588 million in returns to sukuk holders for 2024, with some savers earning up to 4.75%, while the overall average return stood at 4.02%. National Bonds also reported a 51% rise in regular savers, underscoring growing interest in structured savings plans and aligning with the UAE’s financial well-being initiatives.

A 41% increase in digital savings was attributed to enhancements in the National Bonds mobile app, which facilitated seamless investment management. Additionally, in partnership with the Ministry of Human Resources and Emiratisation (MOHRE), the company launched an end-of-service benefits program, aimed at helping employers secure financial returns for their employees, reported WAM.

National Bonds maintains a low-to-medium risk investment strategy, balancing capital protection with stable returns. In response to rising global interest rates, bank deposits were increased to 20% in 2024. The company’s portfolio is now allocated as follows:

• 30-40% in fixed-income assets
• 10-12% in listed equities
• 8% in private equity investments
• 20% in real estate, including ready properties and development projects

Mohammed Qasim Al Ali, Group CEO, highlighted that National Bonds’ future-ready savings ecosystem is designed to address both financial needs and behavioral savings challenges. He emphasized the company’s focus on fostering a disciplined saving culture through financial incentives, including an annual rewards program worth AED 36 million.