National Bonds is a Shariah-compliant savings product owned by the Investment Corporation of Dubai, the principal investment arm of the Dubai government. It is not a bank account and does not pay interest. Instead, it operates on a Mudarabah profit-sharing structure where your money is pooled with other investors, invested in Shariah-compliant assets, and returns are distributed as annual profit shares rather than guaranteed interest. The current expected gross profit rate is 3.75% per annum, with a 1% provider fee applied, giving a net rate of approximately 2.75% before the prize draw element. The prize draw is where National Bonds becomes genuinely different from a standard savings account and where the value case either makes sense for you or does not.
What National Bonds actually is
National Bonds Corporation was established in 2006 and is owned by the Investment Corporation of Dubai. It is regulated by the UAE Securities and Commodities Authority (SCA), not by the Central Bank of UAE. This distinction matters: National Bonds is not a bank and your investment is not covered by the UAE bank deposit protection scheme up to AED 500,000. It is a Shariah-compliant savings and investment company.
When you purchase National Bonds you are buying savings certificates. Your funds are pooled with other investors and invested by National Bonds Corporation under a Mudarabah agreement, a profit-sharing structure in Islamic finance where you provide the capital and National Bonds acts as the managing partner. Profits from the investment portfolio are distributed to certificate holders according to the declared annual profit rate. Unlike a bank savings account, the return is not guaranteed in advance because it depends on actual investment performance.
In practice the returns have been stable over the company’s 19-year history, but the structure is genuinely different from a fixed deposit or a savings account. Understanding this distinction matters for anyone deciding how much of their savings to allocate here.
How returns work: profit sharing and prize draws
Returns from National Bonds come through two separate mechanisms.
Annual profit distribution: The expected gross profit rate is currently 3.75% per annum. National Bonds charges a 1% annual fee to the trustee, which reduces the net rate applied to member accounts to approximately 2.75%. Profit is distributed monthly by way of additional units added to your account. The profit rate is variable and reset periodically to reflect market conditions. It is communicated to investors accordingly and is tied to the 3-month EIBOR rate subject to a minimum floor.
Prize draw programme: Every AED 10 in National Bonds certificates gives you one entry into the monthly prize draw. Prizes are distributed monthly and include cash prizes ranging from small amounts to AED 1 million draws. The prize draw is funded from the Mudarib’s own funds, meaning it is separate from your profit distribution and does not reduce your profit share. Since inception in 2006, National Bonds has distributed over 5.66 million prizes worth over AED 658 million to bondholders across all nationalities.
The prize draw is the element that makes the effective return comparison complex. A bondholder with AED 50,000 in National Bonds at a 2.75% net profit rate earns approximately AED 1,375 per year in profit distribution. If that same person wins a prize of AED 500 in a given year, their effective return for that year is AED 1,875, or 3.75%. Most bondholders do not win significant prizes in any given year but the programme creates an asymmetric upside that pure savings accounts cannot offer.
Products available in 2026
Standard savings bonds: The core product. Buy certificates in multiples of AED 10. Minimum purchase AED 100. No maximum limit. Monthly profit distribution as additional units. Eligible for prize draws based on the number of AED 10 units held. No fixed term, withdraw at any time after the initial holding period.
myPlan: A goal-oriented savings programme with fixed monthly contributions. You commit to a specific monthly amount and a target period. The structure enforces savings discipline. Early cancellation before 12 payments incurs a 0.5% penalty on the committed amount with a minimum of AED 15. After 12 months no cancellation penalty applies. Enhanced prize draw participation is a feature of myPlan accounts.
USD Certificates: US dollar-denominated savings certificates providing currency diversification. Suited for investors who earn in USD or want to hold a portion of savings in dollars without currency conversion risk. Returns are calculated on the same profit-sharing structure as AED certificates.
Tejouri: An exclusive savings product for UAE nationals. Not available to expatriate residents.
Education Plan: A long-term savings plan structured around a target date, designed for parents saving for a child’s education costs. Regular contributions build toward a lump sum at the target date.
Who can invest
National Bonds is open to UAE nationals and expatriate residents. Both can purchase standard savings certificates. The minimum age is 21 years for individual accounts. Parents can purchase bonds on behalf of children under 21 as a long-term savings vehicle. Non-residents of the UAE can also invest, though the account must be opened through the National Bonds app or website with valid identification.
The Tejouri product is exclusively for UAE nationals and is not available to expatriate residents.
How to buy National Bonds
The most straightforward route is through the National Bonds mobile app, available on iOS and Android. Create an account with your Emirates ID and a UAE bank account for funding. You can purchase certificates directly through the app using bank transfer or debit card. The app also shows your current certificate holdings, prize draw entries, and profit distributions.
National Bonds certificates can also be purchased through nationalbonds.ae, through selected UAE exchange houses, and through certain employer payroll programmes where some UAE companies offer National Bonds as part of their end-of-service or savings benefits.
Minimum purchase is AED 100 for standard certificates. There is no maximum. Purchases are confirmed immediately and certificates start earning profit distribution from the following month.
Fees and withdrawal rules
The 1% annual trustee fee is the main ongoing cost. It is deducted from the gross profit rate before distribution, meaning you receive the net rate rather than paying a separate fee. There are no account opening fees, no monthly maintenance fees, and no withdrawal fees for standard certificates.
Standard certificates can be redeemed at any time through the app. Redemption is processed within a few working days and funds are returned to your registered UAE bank account. For the myPlan product, early cancellation within the first 12 months incurs a 0.5% penalty on the committed amount. After 12 months, no penalty applies to myPlan redemption either.
Partial redemption is available. You do not need to cash out your entire holding if you only need a portion of your savings.
National Bonds vs savings accounts vs wakala deposits
| Feature | National Bonds | Best savings account (Mashreq NEO Plus) | Wakala deposit (ADIB) |
|---|---|---|---|
| Net return | ~2.75% + prize draw upside | 6.25% (with salary transfer) | 3.50% to 5.00% |
| Return guaranteed | No (variable profit share) | Yes (fixed rate) | No (indicative profit rate) |
| Shariah compliant | Yes | No (conventional interest) | Yes |
| Minimum investment | AED 100 | No minimum | AED 10,000 |
| Deposit protection | No (not a bank) | Yes (AED 500,000 per bank) | Yes (AED 500,000 per bank) |
| Prize draw | Yes | No | No |
| Liquidity | Good, redeem any time | Instant | Locked for term |
| Government backing | Owned by Investment Corp of Dubai | Private bank, CBUAE regulated | Private bank, CBUAE regulated |
The comparison table shows the honest picture. On net return alone, National Bonds at approximately 2.75% net is materially below the best savings accounts and most wakala deposits currently available in the UAE. The return gap is real and significant over time. On AED 50,000 over three years, Mashreq NEO Plus at 6.25% generates approximately AED 9,960 in interest. National Bonds at 2.75% net generates approximately AED 4,195 in profit distribution. The difference is AED 5,765, which no reasonable prize draw outcome is likely to close for most bondholders.
The honest assessment: who National Bonds is actually for
National Bonds is best suited to three specific situations.
Muslim investors who want Shariah-compliant savings with government backing and prize draw participation: For residents who prioritise Shariah compliance and are uncomfortable with wakala deposits at private Islamic banks, National Bonds offers government-owned Shariah-compliant savings with a track record dating to 2006. The prize draw adds a genuine asymmetric upside that other halal savings products cannot offer.
Residents building a savings habit with small amounts: The AED 100 minimum and the myPlan automated contribution structure make National Bonds accessible for residents who are starting their savings journey and want a disciplined, automated approach. The prize draw creates an engagement mechanism that many people find motivating in a way that watching a savings account balance grow does not.
Parents saving for children over a long horizon: The Education Plan and the ability to buy bonds in a child’s name create a structured long-term savings vehicle. Over 10 to 15 years, the compounding prize draw participation at scale becomes more meaningful and the capital preservation focus of the fund suits the conservative risk profile appropriate for children’s education savings.
National Bonds is not the right choice if your primary goal is maximising return on your cash savings. The net profit rate of approximately 2.75% is below what the best UAE savings accounts and wakala deposits currently pay. If return optimisation is the priority, the best savings accounts UAE 2026 covers every high-rate option with verified current rates and minimum balance conditions.
Frequently asked questions
What is the profit rate on National Bonds in UAE in 2026?
The current expected gross profit rate is 3.75% per annum. After the 1% annual trustee fee charged by National Bonds Corporation, the net rate applied to member accounts is approximately 2.75% per annum. Profit is distributed monthly as additional units. The rate is variable and tied to the 3-month EIBOR rate subject to a minimum floor. It is reset periodically to reflect market conditions. In addition to the profit rate, bondholders participate in a monthly prize draw that provides additional upside funded separately from the Mudarib’s own funds.
Is National Bonds safe in UAE?
National Bonds Corporation is owned by the Investment Corporation of Dubai, the principal investment arm of the Dubai government, and is regulated by the UAE Securities and Commodities Authority (SCA). It has operated since 2006 without missing a profit distribution. However, it is not a bank and is not covered by the UAE bank deposit protection scheme that protects deposits up to AED 500,000 at licensed UAE banks. Under the Mudarabah structure, in theory losses are borne by investors’ capital, though this has never occurred in the company’s 19-year history. For most practical purposes, National Bonds is considered a very low-risk savings vehicle given its government ownership.
Can expats invest in National Bonds in UAE?
Yes. National Bonds is open to both UAE nationals and expatriate residents. The minimum age is 21. Standard savings certificates and the myPlan automated savings programme are available to all UAE residents. The Tejouri product is exclusively for UAE nationals and is not available to expatriate residents. Purchase certificates through the National Bonds app or website using your Emirates ID and a UAE bank account for funding.
Is National Bonds better than a savings account in UAE?
For pure return, no. The best UAE savings accounts currently pay 4% to 6.25% compared to National Bonds’ net rate of approximately 2.75%. The prize draw adds potential upside but most bondholders do not win significant prizes in any given year. National Bonds is better than a savings account specifically for Muslim investors who require Shariah compliance, who value government ownership over private bank regulation, and who find the prize draw element engaging as part of their savings motivation. For maximising cash returns on Shariah-compliant savings, wakala deposits at UAE Islamic banks currently pay 3.5% to 5.5% and are worth comparing directly.
What is the minimum investment for National Bonds in UAE?
The minimum purchase for standard National Bonds savings certificates is AED 100. There is no maximum limit. The myPlan automated savings programme accepts monthly contributions from AED 100. Every AED 10 in certificates gives one entry into the monthly prize draw, so an AED 100 investment gives 10 prize draw entries per month.
For residents who want Shariah-compliant returns with higher rates than National Bonds currently offers, the halal investing guide covers wakala deposits at UAE Islamic banks, Shariah-screened equity portfolios through Sarwa and Wahed, and every other halal investment option available to UAE residents in 2026 with verified rates and minimums.
