25% growth in the investment portfolio within 3 years

The CEO of the National Bonds Group, which specializes in the field of savings and investment, Mohammed Qasim Al-Ali, told Emirates Today that “the group always aims to attract all segments of society, whether citizens or residents, young men, women, and retirees, to its programs,” noting that Its investment portfolios are always concentrated in low- and medium-risk investment instruments distributed over various assets, including fixed income instruments, bank deposits, real estate and listed stocks.

He explained that the group achieved a total growth in the investment portfolio that reached 25% during the past three years, compared to an annual growth rate of 5% during the period before the Corona pandemic, indicating that the group recorded growth in its investment portfolio by rates that reached 9%, to reach 16.6 billion. AED during the first half of this year.

Al Ali pointed out that the company currently offers a group of savings programs and products that contribute to enhancing the culture of savings among various segments of Emirati society to achieve financial health, whether for citizens or residents. These products include savings accounts that meet the needs of all ages, including the youth group. This allows clients to achieve their goals and achieve sustainable financial health.

He explained that the group has launched several plans to encourage regular savings, which reflects the spirit of discipline among customers. These plans have successfully achieved their goals, as customers’ interest in increasing their savings and joining the regular savings program (My Plan) has increased effectively and significantly.

The CEO of the National Bonds Group pointed out that among the plans the group launched was the “One Million” Savings Plan, which is designed for individuals and serves the aspirations of participants towards achieving cumulative savings and profits worth up to one million dirhams in a specific period of time.

Al-Ali explained that one of the most prominent programs that the group also launched was the “Tejoori Emirati Women” account, which was designed specifically for female citizens of the UAE, with the aim of encouraging female citizens to save to ensure a better future for themselves and their children. He pointed out that the company’s products also provided the opportunity to open a savings account for children and minors immediately via the phone application. He pointed out that the increase in the number of customers at the company is due to several reasons, the most prominent of which is increased awareness of the importance of saving to achieve financial health, facilitating and automating the savings process, and competitive returns for the company’s various programs, in addition to the company’s continued focus on offering flexible savings solutions that are consistent with the aspirations of segments of society. different society.

He pointed out that the company now has about 40,000 investors who join the National Bonds programs annually, bringing the total number of investors who have gone through the National Bonds experience to more than 800,000 investors, including investors in retirement and end-of-service programs, who currently number about 10,000 employees. He stressed the company’s endeavor to reach one million investors with National Bonds within the next three years.

Al-Ali stressed that the company’s investment portfolio is distributed across various sectors, characterized by low and medium levels of risk, as fixed income instruments constitute more than 40% of the group’s total investments. He added that the company’s portfolio investments also include bank deposits, which constitute 20% of the total investments.

He also pointed out that the real estate sector is an integral part of the sectors in which the company invests, as it represents about 15 to 20% of the total investments. The company’s investments in this sector are diversified across three main areas: first, income-generating real estate, through the acquisition of ready-to-use and rented units, such as villas or buildings, to ensure sustainable returns, and second, real estate development, which includes a variety of projects under construction and for sale on the market. The map, and thirdly, real estate investment portfolios that include investments in local and international real estate investment funds.

He pointed out that National Real Estate Company, the real estate arm of National Bonds Company, launched its new real estate project, “399 Hills Park,” in May of last year, with an average price of 1,750 dirhams per square foot, while the average price in the region is about 1,850 dirhams per square foot. It highlights the company’s keenness to provide lucrative investment opportunities to investors. He added that the company is currently studying the possibility of offering investment opportunities through the “real estate property division” system.

He stated that the company also invests in the stock sector, but at limited levels, due to the high volatility witnessed in this type of investment, which may increase risks compared to other types of investments. Al-Ali explained that the company’s strategy in this sector focuses on companies of vital importance and defensive nature, such as Islamic banks, “Parkin” and “SALIC”, and the “Taleem” company, which operates in the educational sector and is listed on the Dubai Financial Market, where National Bonds Company is considered the largest. Its shareholders have an ownership percentage of 22%.

He explained that “the company’s conservative policy in this sector contributed to avoiding its exposure to the risks of (corrections) that the financial markets witnessed during the past years.”

He pointed out that the company’s investment policy depends on an investment guide that was developed in cooperation with international companies specialized in this field, and aims to identify the appropriate sectors for the company’s portfolio, and make informed decisions based on a comprehensive analysis of the markets and available opportunities, with a focus on achieving a balance between returns and risks. He continued: “This policy has comprehensive governance through an investment committee approved by the Board of Directors, which determines the directions of this investment policy and the investment department, where a specialized team of experts is responsible for monitoring the markets, analyzing economic data, and coordinating with various fund managers, which enhances the company’s ability to Make strategic investment decisions that support the achievement of its long-term goals.

He revealed that the company’s sales through its network platforms currently amounted to about 19 billion dirhams, noting that after deducting refunds by savers, the value of the investment portfolio reached more than 16.6 billion dirhams, until the end of the first half of this year.

He pointed out that the company is interested in the youth category, as it launched several years ago educational campaigns aimed at encouraging the youth segment to save and invest, explaining that education is a major factor in educating the younger generation about the importance of financial independence, as the company seeks – in the long term – to help the generation Young people to achieve their ambitions and dreams by educating them on how to save and invest, and safe savings options such as those provided by the National Bonds Company. From this standpoint, the “Little Investor” initiative was launched in partnership with the Knowledge Fund Foundation, to conduct educational courses for students in the fifth and sixth grades of primary school on how to deal with money and enter the world of investment from a young age.

Al-Ali stressed that the most prominent advice to the younger generation lies in the necessity of starting early in adopting a culture of saving and investing in themselves at first. They must also clearly define their financial goals, and diversify their investments, commensurate with their ability to bear risks. It is important to be patient and avoid consumer borrowing, which may constitute a burden on these young people and expose them to risks that affect their ability to achieve sustainable financial stability. Young people can also use bank financing to leverage returns on investment, if used correctly.

He also urged young people to avoid engaging in the illusion of quick profits through programs and individuals who lack experience in the field of investment, and recommended that they rely on approved investment and savings programs, such as National Bonds.

---

Cooperation with government agencies

The CEO of the National Bonds Group, which specializes in the field of savings and investment, Mohammed Qasim Al-Ali, said that there is great support provided by the Ministry of Human Resources and Emiratisation and the Emirates Markets and Commodities Authority, through the approval of the National Bonds Fund as one of the first approved investment managers for the voluntary savings programme. The alternative to the end-of-service reward, which was launched by the wise leadership, with the aim of strengthening the UAE labor market system and its attractiveness, in addition to ensuring that workers receive their end-of-service entitlements, and protecting them from the effects of inflation, default or… Bankruptcy of the employer.

---

Factors affecting savings rates

The CEO of the National Bonds Group, which specializes in the field of savings and investment, Muhammad Qasim Al-Ali, said, “Among the most prominent factors that affect the savings rates of young people under the current circumstances are job stability, the level of income and monthly obligations, and postponing unnecessary purchases.” .

He explained that the most prominent of these factors are also the company of friends with experience in investing, and job stability, which the UAE provides amid growing salary rates, in addition to consumer behavior and debt rates, as your obligations must be limited, and finally the presence of disciplined savings plans. He stressed that there is a noticeable increase in financial awareness among society. It is expected that the number of savers will increase, especially after the experience of the Corona pandemic, from which we learned the necessity of creating savings for emergency situations, stressing that the company’s products, which target all segments of society, always take into account that they should be higher than the inflation rate.

Muhammad Qasim Al-Ali:

. The company offers savings programs and products that enhance the culture of savings among various segments of society.

. The company’s sales through its network platforms currently amount to about 19 billion dirhams.