National Bond is a company led by the Dubai Government, a 50% -owned Dubai Bond Company. The company offers a Shariah-compliant investment plan designed to provide low-risk savings for the people of the UAE. It enables people to buy bonds, and earn annual interest after a period, which translates it into profit, which is usually higher than the benefit offered by UAE banks. The motto for the launch of the national debt program is “Everyone’s favorite place to save and invest.”
Eligibility Criteria:
The national bond plan is for everyone, including UAE nationals (UAE) and resident foreigners. Anyone over 21 can buy federal bonds. For minors, they need parents and or legal guardians to obtain a deposit guarantee for them; there is no limit on the minimum income of these bonds, as their purpose is to save money in the future.
Where can you get them?
The most common place to find bonds is at the post office. In addition to the post office, there are more than 700 places to buy these bonds in the UAE. To make things easier for the people, the UAE government also allows the purchase of government bonds online. These bonds are available at www.nationalbonds.ae Buy on, here you can buy any number of bonds. The minimum investment requirement is 100 dirhams, in which case you can get ten bonds for 10 dirhams, or even a single bond at 100 dirhams. There is no upper limit, but you can buy any bond with an amount greater than 100 AED.
Profit margin:
The company will use investments made on NBC for profit, and finally, the profits will be shared by investors. The UAE interest rate provided to investors will change every year. Compared to banks that reported an average of 2.89% in 2016, the profit margin is higher. When you extend the term of the bond to the end of the year, the profit margin will continue to rise, just like “the longer you save, the more you will earn.” The minimum time that investors must hold the bond; set to 3 months; At the end of the third month, investors can receive 40% of the annual interest after the withdrawal.
Additionally, Bondholders receive 20% of the national bond profit each year. Treasury bond margin growth So far, Treasury’s profit is awe-inspiring. It provides a higher profit margin than any bank savings account, depending on the value of the bond. This is the approximate increase in the profitability of government bonds.
In 2014, the margin on time deposit bonds was 1.2%. In 2015, the margin on bonds above AED 50,000 was 1.76%. The profit margin in 2016 is the same as in 2015, which is 1.76%
Extreme growth in term savings bonds in 2017 was 2.82%. In 2018, Treasury invested in a real estate project on Reem Island and another project in Satwa, near City walk. As a result, the authorities expect profits to increase by about 4%.
Gift certificates and rewards
In addition to the profit margin, another aspect that is coveted is the return. Under this plan, customers can claim prizes based on the investment they make and receive a lucky draw of 50 dirhams to 10,000 dirhams (1 million dirhams) um) reward. Each bond will have 2-4 draws each year. Based on investment and tenure, determine the number of opportunities for each draw each year. You can buy AED 100-25000 vouchers and give them to others.
Is it worth the investment?
Investing is very important in everyone’s life. It turns out that it is suitable for high education, any medical expenses, post-retirement funds, etc. Investing in government-managed plans is a better choice because these plans are trustworthy and mostly Risk-free national bonds are an investment, you can invest in a certain amount and get a reasonable interest rate of 4% as of 2017; this shows that when you want to invest in the UAE, Treasury bonds are worth investing in addition to a considerable profit margin, they also offer refreshing rewards and gifts.