Complete Guide to National Bonds in UAE

National Bonds occupies a distinctive position in the country’s savings and investment landscape. Neither a bank deposits nor a high risk investment fund, it blends capital preservation, Shariah-compliant investing, and prize-linked incentives under a government-owned structure. 

For conservative investors seeking returns above traditional savings accounts without equity-level volatility, National Bonds represents a hybrid solution that merits closer examination.

Established in 2006 and wholly owned by the Investment Corporation of Dubai (ICD), National Bonds has grown into a systematically important savings institution with AED 15.8 billion in assets under management as of end-2024. 

Its model combines anticipated annual returns of approximately 4-5 % with participation in an AED 36 million annual rewards Programme, creating a differentiated value proposition in the UAE market.

What are National Bonds

National Bonds Corporation is a Shariah-compliant savings and investment company licensed and regulated by the UAE Securities and Commodities Authority (SCA). Unlike banks, it does not accept deposits or offer interest-bearing accounts. Instead, customer funds are pooled and invested under a Mudaraba (profit-sharing) structure.

Investors act as capital providers, while National Bonds serves as the managing partner. Profits generated from the investment portfolio are distributed to investors according to declared profit rates, while losses - should they occur - are borne by investors’ capital, consistent with Islamic finance principles.

National Bonds investment strategy and asset allocation

National Bonds follows a low-to-medium risk, multi-asset investment strategy focused on capital preservation and delivering inflation-beating returns over full market cycles. The portfolio is actively managed and adjusted in response to macroeconomic conditions, interest-rate trends, and market opportunities.

Asset allocation snapshot (2024)

Geographic allocation

This allocation reflects National Bonds’ mandate to maintain a strong domestic focus while ensuring diversification across asset classes and geographies, in line with its long-term savings and risk-management objectives.

Overview of types of National Bonds

National Bonds offers a diverse suite of Shariah-compliant savings and investment products designed to support different financial goals and time horizons. While National Bonds does not formally label its offerings into fixed categories, the products can be practically grouped into three investment types based on structure, liquidity, and commitment period.

1. Core savings and regular savings products

These products are designed for flexible, ongoing savings, allowing individuals to build capital gradually while retaining relatively easy access to funds. They are typically used for short- to medium-term goals, disciplined monthly saving, and contingency planning.

2. Term-based and benchmark-linked investment products

These products involve a defined tenure or profit benchmark, offering clearer return visibility over a specified period. They are suited to investors who are comfortable committing funds for a fixed duration in exchange for more predictable profit structures.

3. Goal-oriented and long-term wealth accumulation solutions

These products are structured around specific financial objectives or longer-term wealth accumulation, often requiring longer commitment periods. They may offer enhanced returns, incentives, or features aligned with long-term saving behaviour rather than liquidity.

All National Bonds products operate under the same Shariah-compliant Mudarabah framework, but differ meaningfully in liquidity, return structure, and commitment period. This allows UAE investors to align savings and investment choices with their financial priorities—whether that is flexibility, yield visibility, or long-term accumulation—without moving outside a single regulated platform.

Core Savings Products

Saving Bonds

Saving Bonds are National Bonds' flagship and most widely used product, designed to function as a flexible, low-risk savings vehicle rather than a traditional fixed-term investment. 

They allow investors to park surplus cash while still participating in National Bonds' profit-sharing pool and prize draw programme, without committing to long lock-in periods.

myPlan (Monthly Automated Savings)

myPlan is an automated, goal-oriented savings programme designed to help individuals build wealth through consistency and discipline rather than market timing. 

By committing to fixed monthly contributions, investors gradually accumulate bonds while benefiting from profit sharing and enhanced prize draw participation.

Key Insight

Early cancellation before 12 payments incurs a 0.5% penalty on the committed amount (minimum AED 15), which is waived after 12 months of contributions. This structure enforces commitment discipline while rewarding persistence.

Tejouri

Tejouri is an exclusive savings account designed for UAE nationals (Emiratis), providing preferential terms and enhanced benefits aligned with government initiatives to promote local savings culture and citizen wealth accumulation.

Eyaali (Junior Savings Plans)

Eyaali is a dedicated children's savings account managed by parents or guardians, designed to instil financial discipline and literacy from an early age while building capital for future milestones.

Gift Vouchers

Gift Vouchers are purchasable savings certificates designed to be gifted to family and friends, allowing recipients to build savings while entering prize draws—ideal for financial literacy gifting and wealth transfer initiatives.

The Global Savings Club

The Global Savings Club is a corporate employee savings programme allowing workplace-based systematic deductions and group participation, often with employer matching or special corporate rates negotiated for participating companies.

Term-Based and Benchmark-Linked Investment Products

Term Sukuk

Term Sukuk are fixed-tenor, Shariah-compliant investment products designed for investors who want to deploy surplus cash for a defined period while earning potentially higher returns than flexible savings products like Saving Bonds. 

Funds are invested in income-generating sukuk and other low-risk assets, with profits distributed periodically during the investment term.

EIBOR Plus

EIBOR Plus is a rate-linked investment product introduced in March 2024, designed to allow investors to benefit from movements in the UAE interbank rate (EIBOR) while remaining within a Shariah-compliant framework. Returns are calculated based on a floating formula tied to the 3-month EIBOR, subject to a minimum floor.

The USD Certificates

The USD Certificates are US dollar-denominated savings certificates providing currency diversification for investors seeking protection against dirham exposure or earning dollar-based returns while maintaining Shariah compliance.

Flexi Term

Flexi Term is a flexible fixed-term savings product combining defined commitment periods (3 months to 3 years) with competitive anticipated returns and predetermined maturity dates, offering investors structured planning horizons without rigid lock-in constraints.

Payout

Payout is a two-year term investment offering elevated returns in the initial period (11% p.a. for the first 6 months) followed by reduced rates thereafter, with monthly profit distribution and capital protection throughout the tenor.

The Boosters

The Boosters are multi-year high-return promotional products offering cumulative anticipated returns of 12% (3 years) and 17% (4 years) for committed long-term investors seeking aggressive capital accumulation.

Goal-Oriented and Long-Term Wealth Accumulation Solutions

Second Salary

Second Salary is a retirement-focused savings solution designed to help investors build a reliable income stream for post-retirement life. By contributing monthly over a structured accumulation phase of 3–20 years, investors gradually grow a pool of capital that generates monthly payouts after retirement.

My Million

My Million is a goal-based wealth accumulation plan aimed at helping investors reach a target of AED 1–5 million over the long term. It allows for a combination of monthly contributions and flexible lump-sum top-ups, with expected profits of around 3.5% per annum.

My Education Plan

My Education Plan is a purpose-driven savings programme designed to fund education expenses, from primary school to higher education, over a savings period of up to 18 years. Contributions start at AED 200 per month, and the plan features a structured payout phase aligned with the educational milestones of the beneficiary.

Emirati Payout

Emirati Payout is a specialized savings and payout product exclusively for UAE nationals, designed to support specific financial goals with preferential terms reflecting government support for citizen wealth building and economic empowerment.

Ahed Emergency Savings Plan

Ahed Emergency Savings Plan is a strategic emergency fund builder helping Emirati women systematically accumulate 6 months of living expenses as a financial safety net for unexpected job loss, medical costs, or other crises.

Accelerator Saving Plans

Accelerator Saving Plans are enhanced growth savings products combining higher anticipated returns with structured acceleration mechanisms (bonuses, rate boosts) to fast-track wealth accumulation milestones and reward consistent commitment.

Sukuk Al Waqf

Sukuk Al Waqf is the first of its kind in the Middle East—an innovative endowment product developed by the Awqaf and Minors Affairs Authority (Dubai) in partnership with the Mohammed bin Rashid International Center for Endowment Consultation, and managed by National Bonds. 

Through this groundbreaking initiative, investors can contribute to a savings account where the profits earned are transferred to humanitarian projects of their choice, creating an endless positive impact that continues to benefit communities for years to come.

Sukuk Al Noor

Sukuk Al Noor is a specialized impact investment product supporting Noor Dubai, an official NGO launched in 2008 under the umbrella of Mohammed Bin Rashid Global Initiatives. Noor Dubai's mission is to combat blindness and visual impairment worldwide. Through Sukuk Al Noor, investors can contribute to a safe, minimum 5-year investment initiative where profits are donated to provide eye disease treatment for beneficiaries around the world, with an ambitious goal to cure 30 million people globally.

National Bonds historical returns 

Based on officially disclosed 2024 performance data, National Bonds delivered materially different returns depending on product type and balance size.

Saving Bonds (2024 realised returns)

Returns increased with higher balances and included earned profits plus granted rewards:

• 4.75% for balances ≥ AED 1 million
• 3.50% for AED 350,000–<1 million
• 2.50% for AED 150,000–<350,000
• 1.50% for AED 100,000–<150,000
• 1.00% for AED 50,000–<100,000
• 1.96% for regular Saving Bonds
• 2.79% for minors holding AED 5,000+
• 3.13% for ladies holding AED 5,000+

Term-based products (2024 average expected profit rates)

These products are structured with clearer return visibility:

• Term Sukuk (1 year): 5.05% p.a.
• Term Sukuk (6 months): 5.02% p.a.
• Term Sukuk (3 months): 5.11% p.a.
• Global Pension Plan: 5.55% p.a.
• EIBOR Plus: 5.74% p.a.

In practical terms, National Bonds’ historical data shows a clear trade-off: greater liquidity and flexibility come with lower realised returns, while locking in funds for a term has historically delivered returns above 5% in the UAE’s recent rate environment.

What is the National Bonds prize draw program and how does it work

National Bonds operates one of the longest-running prize-linked savings programmes in the Middle East, distributing approximately AED 36 million in prizes each year. The programme is designed to reinforce disciplined, long-term saving by combining conventional profit-sharing returns with non-guaranteed prize incentives, without requiring investors to risk their capital.

Participation is automatic for eligible National Bonds savings products. Prizes function as an overlay to the savings structure, not a replacement for financial returns.

Prize structure

This multi-tiered structure balances frequent engagement with high-impact headline rewards.

Eligibility and participation

Most core savings products qualify, including Saving Bonds and myPlan. Bonds received as profits or prizes remain eligible for future draws, allowing participation to compound over time. There is no separate entry fee or opt-in requirement.

How the prize mechanism works

Each bond unit held generates a defined number of draw entries. Entries accumulate based on:

• Balance size,
• Duration of holding, and
• Consistency of contributions, with regular savers structurally favoured.

Frequent redemptions reduce accumulated entries, reinforcing long-term holding behaviour and discouraging short-term churn.

Expected value and investor perspective

From a financial standpoint, the prize component carries a modest statistical expected value, commonly estimated at around 0.2%–0.6% per year. Prizes are not guaranteed and should not be treated as a dependable source of return.

The programme’s real contribution lies in behavioural finance. By gamifying saving and providing frequent positive reinforcement, National Bonds increases persistence, reduces premature withdrawals, and strengthens engagement with long-term financial goals—without materially altering the risk profile of the underlying savings product.

Cost of ownership of National Bonds

National Bonds’ costs can be divided into explicit transaction fees and implicit management costs, both of which affect net returns:

Explicit fees

Implicit costs

• Embedded management fee: Approximately 1% per annum, incorporated within the Mudaraba structure rather than charged directly
• Profit retention: National Bonds may retain profits generated above the declared distribution rates, reducing the share passed on to investors

Together, these explicit and implicit costs mean that net investor returns are lower than the gross portfolio performance, making holding period, funding method, and redemption timing important considerations when investing in National Bonds.

How to buy National Bonds

National Bonds can be purchased through multiple convenient channels, catering to both digital-first users and those who prefer in-person transactions. 

Investors can open and manage their accounts via the National Bonds mobile app (available on iOS and Android) or through the official National Bonds website, which provides full access to product selection, portfolio tracking, redemptions, and prize draw information. 

For customers who prefer face-to-face service, National Bonds maintains a nationwide physical distribution network of over 550 partner locations across the UAE. This includes National Bonds branches, selected UAE post offices, and authorised exchange houses such as Al Ansari Exchange, ensuring broad accessibility beyond digital channels.

Opening an account requires completion of standard Know-Your-Customer (KYC) checks in line with UAE regulations. Investors are typically required to provide an Emirates ID, a passport, and basic personal details.

UAE residents can expedite the process using UAE Pass, which allows for digital identity verification and faster account activation without physical paperwork. This option is available through both the app and the website.

FAQs

Is National Bonds Shariah-compliant?

Yes. National Bonds operates under a Shariah-compliant Mudarabah (profit-sharing) structure, where investors act as capital providers and National Bonds acts as the investment manager. All products and investment activities are overseen by an independent Shariah Supervisory Board to ensure compliance with Islamic finance principles, including the prohibition of riba (interest) and non-permissible activities.

Are National Bonds returns guaranteed, and can I lose my capital?

Returns are not guaranteed, and National Bonds does not provide formal capital protection. Returns depend on actual portfolio performance under the Mudarabah structure.

While capital loss is theoretically possible, risk is mitigated through conservative asset allocation, diversification, and a focus on income-generating assets. National Bonds should be viewed as lower risk than market investments, but higher risk than bank deposits, which may offer contractual guarantees.

Is National Bonds backed or guaranteed by the UAE government?

No. National Bonds is government-owned, but this does not constitute a government guarantee on capital or returns. Government ownership provides institutional stability and governance credibility, but investors should not interpret it as an explicit financial backstop.

How do National Bonds compare to Islamic fixed deposits or Wakala accounts?

Islamic Wakala or fixed-term deposits typically offer pre-agreed expected profit rates, providing higher certainty over short tenures. National Bonds, by contrast, delivers variable, outcome-based returns that may be higher over longer holding periods but are not fixed in advance.

In practical terms, Wakala deposits suit investors prioritising certainty, while National Bonds is more appropriate for medium- to long-term savers seeking potentially higher returns with moderate variability.

Is the prize draw a meaningful part of the return?

No, not from a financial perspective. The prize draw’s statistical expected value is modest, commonly estimated at around 0.2–0.6% per year.

Prizes should be viewed as a non-guaranteed bonus rather than a core return driver. Their primary role is behavioural—encouraging consistent saving and longer holding periods.

How liquid are National Bonds investments?

Liquidity depends on the specific product. Some savings products allow relatively quick redemption, while others impose minimum holding periods or early withdrawal fees. National Bonds is therefore better suited for planned savings rather than immediate, penalty-free liquidity needs.

How are returns calculated and paid?

Returns are based on actual portfolio performance and distributed according to product-specific rules. Depending on the product, returns may be paid periodically, credited to balances, or reinvested.

Reported historical returns may include both profit distributions and rewards, meaning they are not directly comparable to a quoted bank interest rate.

When does National Bonds make sense within a portfolio?

National Bonds is best positioned as a capital-preservation or income-stability component within a diversified portfolio. It is commonly used for emergency funds, medium-term savings, conservative or Shariah-conscious investing, and as a transition from idle cash into low-risk investments.

Who should not consider National Bonds?

National Bonds may be unsuitable for investors who require guaranteed returns, immediate liquidity, or are seeking high long-term growth. More aggressive investors may find better alignment with equities, ETFs, or growth-oriented investment strategies.