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National Bonds Corporation Targets 100pc Sales Growth

DUBAI - The National Bonds Corporation (NBC) will target 100 per cent growth in sales in 2009 as it is planning to introduce several new products by the middle of this year, said Mohammed Qasim Al Ali, its Chief Executive Officer.

The NBC has an optimistic outlook for the year 2009, with expansion plans for both the investment fund and the product portfolio, Al Ali told Khaleej Times in an exclusive interview.

“In keeping with the stable nature of the institution, it is expected that our growth will be consistent with our strategic plans and the bondholders’ best interests,” said Al Ali.

“Being the National Savings Scheme, our Investment Committee has concentrated on short term Shariah-compliant money market instruments avoiding high-risk investments,” the CEO said.

While outlining the details of 2009 plans, he said, “The NBC will offer investment on end of service benefits for at least three-year service. It will provide chances to win 26,218 prizes every month in addition to annual return, which will be more than to be announced for 2008.” The scheme will get huge success, he hoped.

Another product is expected by the middle of 2009 in which customers will get returns on a quarterly basis on its investment of at least one year.

“The NBC has succeeded to convince Ministry of Labour to accept national bonds as labour guarantee, which is Dh3,000, said Al Ali. “The ministry has welcomed the idea and now we are discussing it with the UAE Central Bank, “ he added.

Another important sector, he said, is small and medium enterprises. As the NBC is a cash rich company and it can acquire existing small to medium business and make them bigger in a group, provided these are Shariah-compliant.

The current year and 2010 will be good for private equity because more companies need cash and the banks are not lending as good as before, he said.

“We are evolving towards becoming a saving and investment scheme. We will evolve in two areas in 2009, one is primary healthcare and second Takaful, meaning insurance. We have already launched a chain of primary healthcare clinics run and managed by an international company,” said Al Ali.

“For Takaful penetration is less than 5 per cent and most of the insured people are not satisfied with services being provided to them. We are advancing in our feasibility on those two things because health service needs Takaful and Takaful needs health service.”

Automated kiosks will also be introduced in 2009 and people can purchase national bonds straight from the kiosk in big shopping centres.

National Bonds can be purchased from 444 outlets nationwide, including exchange houses and banks. These include Emirates Islamic Bank, Dubai Islamic Bank, Sharjah Islamic Bank, Dubai Bank, and exchange houses Al Ansari, Al Fardan, Al Ghurair, Redha Al Ansari, Al Rostamani International, UAE Exchange, Wall Street Exchange, Lari Exchange, Saad Exchange, Al Razouki International Exchange and Habib Exchange. National Bonds may also be purchased online.

· abdulbasit@khaleejtimes.com