National Bonds and Sharia-Compliant Savings in the UAE Explained (2026)

National Bonds is a Sharia-compliant savings and investment company owned by the Investment Corporation of Dubai. You buy savings bonds from AED 100, your money is pooled and invested under a Mudaraba (profit-sharing) structure, and profit is declared after each year rather than promised in advance. For 2025 it announced returns of up to 4.45%, alongside a prize programme that pays out tens of millions of dirhams a year. Here is how it actually works, what it has paid historically, and how it stacks up against bank deposits.

What exactly is National Bonds and how does the structure work?

Founded in 2006, National Bonds Corporation is regulated in the UAE and wholly owned by the Investment Corporation of Dubai, the Dubai government's investment arm. Despite the name, its core products are not bonds in the conventional fixed-income sense. They are units in a Mudaraba: you (the capital provider) entrust money to National Bonds (the Mudarib), which invests it and shares the resulting profit with you.

The pooled funds are spread across income-generating assets. Based on its published 2024 factsheet, allocation was roughly 43% fixed-income sukuk, 26% real estate, 19% money market instruments and 11% equities. An internal Sharia supervisory board oversees compliance, which is why the product is widely used by savers who avoid conventional interest. For context on how profit-sharing differs from interest, see our guide to Sharia-compliant savings and investment options.

Two features follow directly from this structure:

Returns are variable and declared in arrears. You find out each year's profit rate after the year ends. Nothing is contractually guaranteed in advance, including capital, although the conservative allocation makes losses unlikely in normal conditions.
Entry is very low. Most savings products start from AED 100, and term products (Term Sukuk, EIBOR Plus) from AED 10,000 to 25,000.

What profit rates has National Bonds actually paid?

Recent declared rates, as published by National Bonds and reported in UAE media:

Product / tier	2024 declared rate	2025 declared rate
Savings bonds, balances above AED 1 million	4.75%	Up to 4.45% announced for 2025
Savings bonds, AED 350,000 to 1 million	3.50%	Tiered below headline
Savings bonds, AED 150,000 to 350,000	2.50%	Tiered below headline
Regular savings bonds (smaller balances)	~1.96%	Tiered below headline
Term Sukuk (1 year, AED 10,000+)	~5.05%	Declared per issuance
EIBOR Plus (term product)	~5.74%	Linked to EIBOR

The pattern to notice: headline rates in press releases ("4.45% for 2025", "4.75% for 2024") apply to the top tiers or specific products. A saver holding AED 50,000 in regular savings bonds historically earned closer to 2%, roughly half of what leading UAE savings accounts paid in the same period. Larger balances and committed terms earn materially more. Always check the tier that applies to your balance, not the headline. Rates for 2026 will be declared in early 2027, and as of 2026 the general direction of UAE profit and deposit rates follows US rates because of the dollar peg.

How do the prize draws work and what are they worth?

The rewards programme is National Bonds' signature feature. It distributes roughly AED 35 to 37 million in prizes annually through daily, monthly and quarterly draws, including quarterly AED 1 million prizes. Your chances scale with how much you save and how long you hold, and various products carry bonus entries.

Treat the draws as a lottery ticket stapled to your savings, not as yield. Spread across the whole pool, the expected value of prizes is commonly estimated at only a fraction of a percent per year, and it is not guaranteed to you personally. The draws make saving more fun, and for someone who would otherwise not save at all, that behavioural nudge has genuine value. But do not choose the product for the prizes alone.

How does National Bonds compare with bank deposits?

Feature	National Bonds (savings bonds)	Bank fixed deposit	Bank savings account
Return type	Variable, declared after year end	Fixed or pre-agreed expected profit	Variable, changes with rates
Typical level (as of 2025-2026)	~2% small balances, up to ~4.45% top tier	Typically 3 to 4.5% for 6 to 12 months	Typically 0.5 to 4%+ with conditions
Sharia structure	Mudaraba, Sharia board	Conventional interest, or Wakala at Islamic banks	Conventional or Islamic variants
Access to funds	Redeemable, small fees may apply early	Locked until maturity, penalty to break	Instant
Prize draws	Yes, ~AED 35 to 37M a year	No	Rare promotions
Capital guarantee	Not contractual, conservative portfolio	Yes, contractual	Yes

The honest comparison as of 2026: for pure rate on a modest, flexible balance, top UAE savings accounts and fixed deposits often beat regular savings bonds, sometimes by 1 to 2 percentage points. Check live rates with the UAE savings account rate tracker and our guide to fixed deposits in the UAE. National Bonds wins on Sharia structure with government-linked ownership, the low AED 100 entry point, the prize programme, and disciplined saving via its myPlan monthly instalment product.

Remember also that National Bonds is a savings vehicle, not a growth engine. At 2 to 4.5%, it roughly tracks inflation. Money you will not touch for 10+ years generally belongs in diversified investments instead; see how beginners can start investing in the UAE and check your long-term numbers with the retirement gap calculator.

Who is National Bonds actually good for?

Savers who want Sharia compliance with a government-linked institution and a formal Sharia board.
Small and new savers: the AED 100 minimum and myPlan direct debits build a habit without a bank minimum-balance trap.
Emergency fund parking for prize-motivated savers who accept a possibly lower rate in exchange for draw entries.
Larger balances willing to commit: the AED 1 million+ tier and Term Sukuk rates around 5% have been competitive with bank offers.

It is less suitable if you want the highest guaranteed rate on a mid-size balance (compare best savings accounts in the UAE) or long-horizon growth.

FAQ

Is National Bonds guaranteed by the Dubai government?

No. National Bonds is owned by the Investment Corporation of Dubai, which lends it institutional credibility, but returns are not guaranteed and the capital guarantee is not a contractual government obligation. Its conservative, sukuk-heavy portfolio has delivered positive declared profits consistently, but it is structurally different from a government-guaranteed deposit.

What profit rate did National Bonds pay for 2025?

National Bonds announced returns of up to 4.45% for 2025. As in previous years, the headline applies to top tiers and specific products; smaller regular savings balances earn tiered, lower rates. For 2024, declared rates ranged from roughly 1.96% on regular bonds to 4.75% on balances above AED 1 million.

Can I withdraw my money from National Bonds anytime?

Savings bonds are redeemable, subject to short minimum holding periods and small charges in some cases (instant redemption typically costs AED 15 plus VAT, and early redemption of some products carries a small percentage fee). Term products like Term Sukuk are designed to be held to maturity. Check the current terms of the specific product before buying.

Is National Bonds halal?

National Bonds operates a Mudaraba profit-sharing model overseen by a Sharia supervisory board, and is widely accepted as Sharia-compliant. Savers who want to go deeper into the underlying screens and structures can read our guide to Sharia-compliant savings and investments.

Sources and References

Khaleej Times, business coverage; National Bonds' announcement of returns of up to 4.45% for 2025 and growth in bondholders' funds (khaleejtimes.com)
National Bonds Corporation, historical profit rates page and 2024 factsheet; tiered rates, asset allocation and rewards programme details (nationalbonds.ae)
StashAway MENA, guide to National Bonds; 2024 tiered profit rates, minimums, redemption fees and prize programme value estimates (stashaway.ae)

This article is for general information and does not constitute financial, investment or Sharia advice. National Bonds returns are declared annually and are not guaranteed, capital is at risk in any non-guaranteed product, and past profit rates do not guarantee future results. Confirm current rates, fees and product terms directly with National Bonds or your bank before saving.

Published on 9 September 2026.