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Home / Features / National Bonds - FAQ’s

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National Bonds - FAQ’s

How do National Bonds work? National Bonds is a Shari’a compliant savings programme to invest the proceeds from Bonds in establishing developmental projects in the country in compliance with the principles of Islamic Sharia through the mode of Mudaraba (fund management), and give their holders indicative annual returns in addition to giving them the opportunity to win 26,318 prizes from National Bonds Corporation own money. National Bonds can be purchased in units of 10 Dirhams. There is a minimum purchase requirement of 100 Dirhams i.e. 10 units. Each individual 10 Dirhams Bond unit is allocated a Bond serial number which is entered into a monthly draw for prizes ranging from 100 Dirhams up to the top monthly grand prize of 1 million Dirhams. When was National Bonds established? And Who Owns it? National Bonds is a private joint stock company that was established in March 2006, based in Dubai, United Arab Emirates. The company is licensed authorized in the UAE. The company main shareholders are Government of Dubai, Dubai Holding Company, Emaar Properties Company and Dubai Bank. Do I receive interest on my National Bonds? No, there is no interest on the bonds as this is a Shari’a compliant product. At the end of the financial year, profits made by National Bonds Corporation will be determined and 20% of this amount will be distributed amongst bond holders. The distribution will be according to the number of bonds held by an individual, and for the time period the bonds were held, during the related financial year.Are National Bonds Shari’a compliant? Yes, this is a Shari’a compliant product because it is based on a Mudaraba (fund management) agreement concluded between the Bonds shareholders and the company, where the National Bonds company plays the role of Fund Manager (Shari’a term “Mudareb”), and the shareholders are the fund provider (Shari’a term “Rab Al Mal” and its plural: “Arbab Al Mal”). Under such a Mudaraba structure, the fund provider (Shari’a term “Arbab Al Mal”), namely here the shareholders, and the Fund Manager (Shari’a term “Mudareb”) join hands whereby the “Arbab Al Mal” provides funds to the Mudareb for investment in identified transactions/projects in a Shari’a-compliant manner and both share the profits emanating from such transactions/projects in a pre-agreed distribution ratio. Upon completion of the Mudaraba agreement and its liquidation or Redemption, the Mudareb returns the capital to the “Arbab Al Mal” along with the Arbab Al Mal’s share of profit earned by the Mudaraba by investing the capital. The profit distributed between the “Arbab Al Mal” and the Mudareb must be the actual profit earned by the Mudaraba from the Shari’a-compliant transactions/projects. Who can buy National Bonds? Anyone can purchase National Bonds. However, the minimum age required to purchase National Bonds is 16 years unless purchased by a parent / guardian for a minor.Where can I buy National Bonds? National Bonds can be purchased online at www.nationalbonds.ae, or by applying through mail, and at the following banks and exchange houses: Dubai Islamic bank Emirates Islamic Bank Sharjah Islamic Bank Al Ansari Exchange Al Fardan Exchange Al Ghurair Exchange UAE Exchange Centre L.L.C. Redha Al Ansari Exchange Al-Rostamani International Exchange Wall Street Exchange When do I receive my National Bonds? Your National Bonds will be issued and sent to your mailing address within 7 working days of your Application Form being received and accepted by National Bonds Corporation. How many National Bonds can I buy? National Bonds can be purchased in units of AED 10 each, with a minimum purchase required of 10 units, or AED 100. Over AED 100, you can purchase as many units of AED10 as you wish. There is no maximum limit on how much you can purchase. How many National Bonds prizes are there? There are 26,318 prizes given away every month. The total value of these prizes is A

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