Dubai Bank and National Bonds Form Strategic Alliance

Dubai, August 19, 2008: Dubai Bank , a Shari’a-compliant bank and Dubai Group  company, has formed a strategic alliance with National Bonds Corporation, the UAE’s Shari’a-compliant national savings scheme, to establish a stronger base for bonds distribution to retail and institutional buyers and add extra mileage in terms of services and reach.

The signing ceremony took place recently at the Dubai World Trade Club, Dubai World Trade Center, and was attended by officials from both institutions.

Dubai Bank is the fourth bank to partner with National Bonds and the first bank authorised to issues the bonds certificate instantly. With the increase in the number of Dubai Bank’s strategically-located branches from five in 2006 to the current 20, this alliance enables National Bonds Corporation to expand its bond distribution network to over 320 associated outlets located across the UAE, with infinite growth potential.

Mohammed Qasim Al Ali, Chief Executive Officer of National Bonds Corporation, said:

This landmark agreement reflects the strengthened relationship of two leading Shari’a-compliant entities in reinforcing the availability of reliable and convenient investment opportunities offering sustained financial growth to individuals, families and corporate.

“Our success as the National Savings Scheme is linked to a well-connected distribution network. To this effect, our strategic relationship with Dubai Bank not only provides more distribution points, but is also an innovative move, as for the first time ever, our bonds will be issued at the time of purchase. We are confident that offering a seamless service for our bondholders, their confidence in National Bonds as ‘everyone’s favourite place to save’ is further boosted,” added Al Ali.

Since its launch in 2006, National Bonds has continuously aimed to reach a wide cross-section of the UAE population. The company achieved record-breaking sales in the first six months of 2008, by attaining an increase of over 200 per cent as compared to the same period in 2007.

Commenting on the partnership, Salaam Al Shaksy, Chief Executive Officer of Dubai Bank, said:

This alliance between two major Shari’a-compliant financial institutions is significant for both organizations, representing a major step forward in the world of Islamic banking. At our branches, National Bonds customers will also have instant access to a variety of other financial related products they may require.

“Attaining the bonds from any of Dubai Bank’s 20 branches throughout the UAE will be simple and hassle-free. Every branch will have a teller specifically assigned to issue the bonds and deal with related issues in order to minimize the amount of time that customers will need to spend on the process. Since Dubai Bank is authorised to issues the bonds certificate instantly, this will make the process even less time-consuming,” Al Shaksy added.

National Bonds can be purchased from over 320 associated outlets nationwide, including any of Dubai Bank’s 20 branches, as well as from Emirates Islamic Bank, Dubai Islamic Bank, Sharjah Islamic Bank, and the Al Ansari, Al Fardan, Al Ghurair, Redha Al Ansari, Al Rostamani International, UAE Exchange, Lari Exchange, Wall Street and Habib exchange houses. In addition, National Bonds can be purchased online at www.nationalbonds.ae

For more information on National Bonds, please visit www.nationalbonds.ae or call Toll Free 800-BONDS (26637). For more information on Dubai Bank please visit www.dubaibank.ae or call 8005555

Note to editors

About National Bonds Corporation:

A private shareholding company, National Bonds Corporation (NBC) is a Dubai-based entity that was launched in March 2006. The Government of Dubai holds a 50 per cent ownership in the company with each of its local shareholders, comprising Dubai Bank, Dubai Holding and Emaar Properties, holding 16.6 per cent ownership respectively. National Bonds Corporation is Sharia compliant, with a dedicated Sharia Board to oversee all financial aspects, including product-related operations and investments. Since its launch in 2006, National Bonds has come up with various successful initiatives in community development. In December 2006, it launched “Skycourts,” the elegant and affordable freehold residential community in the heart of Dubailand Residence Complex. In 2007, National Bonds launched National Properties, a wholly owned, full-service real estate subsidiary that offers distinctive homes and lifestyle options to the multinational UAE community. They also launched Madaares PJSC, an initiative aimed at raising quality standards in the region’s education sector. Madaares has acquired Taaleem and its associate Beacon Education, a leading provider of high-end primary and secondary education in the Gulf region consolidate its position in the fast-growing education sector
 

About National Bonds:

National Bonds is the National Saving Scheme of the UAE that provides UAE nationals, UAE residents and non-residents over the age of 16 with a credible, safe and Sharia-compliant savings opportunity.  Minors can also own National Bonds, provided the bonds are purchased by the parent/guardian. Each bond costs AED 10, with a minimum purchase of AED 100; bonds are available in over 200 outlets across the UAE. National Bonds offers all participants the opportunity to win up to AED 1 million in monthly draws. The programme is based on the Islamic principle of Mudaraba, whereby at the end of the financial year 20 per cent of the profits made by the National Bonds Corporation (NBC) will be distributed among bondholders.

About Dubai Bank (a Dubai Group Company):

Since its launch in September 2002, Dubai Bank has challenged traditional banking practices by placing service, transparency and convenience at the forefront of its operations and introducing unique products and services to the market. By bringing a breath of fresh air to the UAE's financial sector, Dubai Bank has firmly positioned itself as a catalyst for change.
On January 1, 2007, the Bank became a Shari'a compliant financial institution. In addition, all of the Bank's business activities are being carried out in a manner that ensures compliance with the standards of ethical banking that are currently followed by a number of banks around the globe. With a new, innovative range of Shari'a compliant products and services delivered with dynamism and excellence in service and quality, Dubai Bank aims to establish itself as a pioneer in the UAE's Islamic banking sector and as an icon of Dubai's success. Dubai Bank's keen focus on customer needs and on building long-lasting relationships with its customers will continue to be the drivers of the Bank's success and growth. Its new Shari'a compliant products and services cater to the needs of its retail, corporate and investment banking customers and include transaction and deposit accounts, personal finance, trade finance, corporate finance and capital market services, as well as a host of other unique banking services

For further information, please contact:
Sudha Hemmad / Anusyia Nathan / Mohammed Daggamesh
ASDA’A Public Relations
Tel: +971-4-3344550
Fax: +971-4-3344556              
E-mail: s.hemmad@asdaa.com / a.nathan@asdaa.com/ m.daggamseh@asdaa.com