National Bonds, the Sharia-compliant savings and investment company owned by the Investment Corporation of Dubai, has unveiled a new plan that will help people become dirham millionaires through savings and accumulated profits over a period of up to 10 years.
Called “My One Million”, it is an “affordable savings plan” that allows participants to select a savings tenor of three to 10 years with the goal of saving Dh1 million ($272,294), Rehab Lootah, deputy group chief executive of National Bonds, said on Monday.
Customers can jump-start their savings journey by making a lump-sum investment in the plan, while companies can contribute to the scheme on behalf of their employees.
“Our mission is to empower individuals and corporations alike with knowledge and opportunities that foster lasting financial prosperity within our community,” Ms Lootah said.
“With the launch of My One Million, becoming a millionaire is a choice that every individual can make.”
The Covid-19 pandemic raised widespread concern over personal financial issues and highlighted the importance of saving, having an emergency fund for short-term cash needs and enough money for retirement.
The UAE, the second-largest Arab economy, has recovered strongly from the pandemic-induced slowdown on the back of the government’s fiscal and monetary measures.
The UAE has undertaken several economic, legal and social reforms to strengthen its business environment, increase foreign direct investment, attract skilled workers and provide incentives to companies to set up or expand their operations.
Last month, the UAE introduced an optional savings retirement plan that allows employees in the UAE’s private and free zone sectors to invest their end-of-service benefits to build long-term wealth.
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End-of-service gratuities are lump-sum payments that all employed residents are entitled to after completing at least one year of service with a company.
The scheme will involve the formation of savings and investment funds that will be overseen by the Securities and Commodities Authority in collaboration with the Ministry of Human Resources and Emiratisation.
Meanwhile, a survey by National Bonds in July found that 82 per cent of employees in the UAE are open to employers investing their end-of-service benefits, while more than eight in 10 savers believe it is important to have an emergency fund to survive difficult economic times.
More than a third of respondents to the annual National Bonds Savings Index survey also said they planned to retire in the UAE because of the country’s “stability”.
“This has led to a significant number of individuals, particularly expat Arabs, considering longer-term investment opportunities within the country as well as 60 per cent of Asians, and Westerner respondents are eyeing the UAE as an investment destination,” the survey said.
Savers who want to join the My One Million plan can register through the National Bonds app or visit one of the company’s branches.
Once registered, participants then choose the duration of the plan and set up their monthly contributions.
For example, if a customer chooses a 10-year plan and invests a lump sum of Dh100,000, their monthly contribution required to reach Dh1 million at the end of the term will be Dh6,200, National Bonds said.
“Our aim is clear; we help individuals build robust, long-term financial futures with our unique and adaptable solutions,” said Ms Lootah.
In March, National Bonds also launched a Second Salary programme that aims to generate a supplementary income for Emiratis and UAE residents during retirement.
It comprises a saving phase, in which customers deposit money into National Bonds every month for a period between three and 10 years, and an income phase, which allows customers to draw an income every month.
In the second phase of the plan, customers will receive their base investment amount every month plus their accumulated profit. The profit earned will be compounded monthly to provide enhanced returns, National Bonds said.
