Business | Banking
National Bonds receive good response
The sale of national bonds drew a strong response from subscribers looking to invest in a Sharia-compliant savings opportunity.
- By Shakir Husain and Stanley Carvalho, Staff Reporters
- Published: 00:00 March 19, 2006
Dubai and Abu Dhabi: The sale of national bonds drew a strong response from subscribers looking to invest in a Sharia-compliant savings opportunity.
Available to both UAE nationals and residents, the bonds can be subscribed and redeemed by holders at their convenience.
"This is an additional investment channel for people to save and earn money. If this scheme is successful in the UAE, it may be replicated in other Muslim countries," said Faisal Aqil, general manager of retail banking at Emirates Islamic Bank.
"We had a great demand for applications at our 12 branches. We collected big money," he told Gulf News.
Launched by National Bonds Corp (NBC), a Dubai-based private shareholding company, the bonds were sold at 100 branches of Emirates Islamic Bank, Al Ansari Exchange, Al Ghurair Exchange, Thomas Cook Al Rostamani Exchange Company and UAE Exchange Centre.
Nasser Al Shaikh, NBC chief executive officer, said people who repatriate money to their home countries would find an opportunity in National Bonds to earn returns on their savings within the UAE.
"Our research indicates that many in this region enjoy above average disposable income. Whilst banking products are satisfactory, there is a shortage of alternative saving schemes," he added.
At the end of the financial year any profits made by NBC will be determined and 20 per cent of this amount will be redistributed among all bond holders.
"The initial response is good. However, most people were calling us to know more about the bonds, as the message was not clear to them," Mohammad Al Ansari, managing director of Al Ansari Exchange, told Gulf News.
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