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UAE National Bonds - Should we invest or not?

They seem to market it more like AED 10 for a lottery ticket then a serious investment. I'm curious to see if your capital is actually guaranteed, this was one thing I couldn't find out on their website and guaranteed by whom.

Also are they actually related to the government of Dubai or just some company that decided to call it National Bonds?

Interesting topic, I look forward to hearing others opinions as I too am considering buying some.

Fayz

My understanding is that they are in fact "underwritten" by the government.

Not like i have money to invest or "waste" but....

What site you are talking about Fayz?

What are these bonds you are talking about?

Yshimy

These are the new bonds being sold that are entered into a draw monthly giving you a chance to win mega Dhs but at the same time they retain their face value and can be cashed in any time. But your "bond" goes into the prize draw every month until you cash it in.

Basically they have copied the system we have in the UK called "Premium Bonds".

"retain their face value"

Can you elaborate.

Man, i'm not the financial analyst of the Bank of America.

hehe, i mean put in in simple street guy terms please

Face value means that whatever you pay for them, they keep that value forever, and the same amount will be reurned to you if you cash them in.

It basically a lottery tickect that goes on and on and on and on until you ask for your money back. The difference is the "bond" will never pay you interest but gives you a chance in a monthly draw.

This is really a get around the no gambling law. Because the "bond" has a face value it is technically not gambling, but it is really.

it is gambling without loosing....

but... there is something fishy..

anyway, it is not investiment to me, i'm not gonna do it.

Yshimy

dont fear, it is Shariah compliant product underwritten by the government - honest. Its just a way to get people to save money and a chance to win buckets loads of cash thats all.

It is very popular in the UK. Premium Bonds were introduced in the UK after the 2nd world War as a way for our government to encourage people to save a little bit of money with NO RISKS.

Here is the link buddy

http://www.nationalbonds.ae/news.htm

Thanks man, i wouldn't go for them because .. not religion, but i wouldn't like to keep hoping to win, i may throw some money "as if i got any" there and just forget about them, like saving in shoe box.

But i wanted to check for investing in one of those stock market things, that they do deal in south east asia telecom stocks. know them


thanks for the link man

Go on Yshimy be a devil , get some buddy,just think of it likened to when you were a kid keeping small change in your money box. I bought 10k's worth

Interest rate at Bank = Nil

Possible win big bucks in Bonds = Very Good chance and more fun than looking at a bank statement.

yeah, that what i just realized now...

Miss you Mother Egypt.... 9-11% bank intrest

i'll go for it to keep moeny out of the russian economy

heheheheh

j/k

thanks guys, Ysh you asked the same questions I wanted to so saved me some typing.

One thing that i did read is they do plan on return 20% of the total profit earned back to the investors. Which at current rates they estimate to be 15% but I can't see that holding true.

Arnie, does it say somewhere on the bonds that they are underwritten and the face value is guaranteed? If so I would be keen on putting some money in, I’m getting 0% interest as well.

I have some money invested in UK premium bonds and am also going to buy some of these - I had assumed they were govt backed, but perhaps not?

There is also the Mashreq Millionaire thingy that is on similar lines, but that doesn't have the profit share..

However, this is perilously close to gambling.... but as the capital is secure and there is a profit share, I am comfortable in investing.

Cheers,
Shafique

fayz wrote:thanks guys, Ysh you asked the same questions I wanted to so saved me some typing.

One thing that i did read is they do plan on return 20% of the total profit earned back to the investors. Which at current rates they estimate to be 15% but I can't see that holding true.

Arnie, does it say somewhere on the bonds that they are underwritten and the face value is guaranteed? If so I would be keen on putting some money in, I’m getting 0% interest as well.

gonna do it its 100 hundred dhms and u can take it back

It's a good deal if you get a share of the profits and your shares are

entered in a monthly draw at the same time. I'm buying.

Fayz

It doesn't say on the bonds re the underwriting details, but i do know the government have taken a pesonal interest in this project. The company has "trustees", and on seing the company rules, it clearly states that the "fund" can only be invested in non risk investments.

The Islmaic bank were appointed to sell the bonds and they are on the board of trustee's.

The government gave their backing in allowing the name "national" to be used.

I know you guys are a little sceptical, but this really is a safe form of saving, albeit with no interest.

Basically National Bonds only uses the income generated from the purchase of the bonds. I would hazzard a guess that they will in effect have to subsidise the prize funds initially until the scheme it able to self fund itself.

i am definately going for it...albeit not in the amount arnie went for...but a couple of 100s/1000s cant hurt...you cant spend what you cant touch i guess...

Go for it Cons, and good luck my friend.

Just slip the odd 10 Dhm note away every few days, then buy at the end of the month. you wont miss it and you may win a Million - how coooool is that.

this helps a lot. thanks for the info.

waiting for me passport to come back from canadian immigration...then off to buy nationals and get eye test for driving school...baby steps...

guys it is nice n all but there is one thing to think about

there are 16,318 prizes every month

as more people buy the bbonds and the number increases but the prizes remain the same thus the chance of winning becomes less and less as time passes on and people keep on buying bonds but the monthly draws remain the same ........

i hope u all understood what i am trying to say here

xibit wrote:guys it is nice n all but there is one thing to think about

there are 16,318 prizes every month

as more people buy the bbonds and the number increases but the prizes remain the same thus the chance of winning becomes less and less as time passes on and people keep on buying bonds but the monthly draws remain the same ........

i hope u all understood what i am trying to say here

Yup thats the way it works. Its still better chance than getting fek all interest rate at a bank.

The odds increase hugely if you buy big blocks, that why i bought one large block instead of bits here and there.

IN UK the largest single purchase we can make is £30k that is around 200k dhs. I have 2 sets of maximum investemnt, one in my name and the other in my sons. I average a 12% return PA. The UK odds are far less than in dubai, our scheme has been in existance since the 1950's.

arniegang wrote:

xibit wrote:guys it is nice n all but there is one thing to think about

there are 16,318 prizes every month

as more people buy the bbonds and the number increases but the prizes remain the same thus the chance of winning becomes less and less as time passes on and people keep on buying bonds but the monthly draws remain the same ........

i hope u all understood what i am trying to say here

Yup thats the way it works. Its still better chance than getting fek all interest rate at a bank.

The odds increase hugely if you buy big blocks, that why i bought one large block instead of bits here and there.

IN UK the largest single purchase we can make is £30k that is around 200k dhs. I have 2 sets of maximum investemnt, one in my name and the other in my sons. I average a 12% return PA

how many bondsdid u buy ?

and there any transaction fees? if u buy or reedem the bonds later on

I bought 1000 bonds @ 10Dhs and there are NO transaction fee's on purchase or sale.

^^ tnx for all th info but do u really think that 1000 shares are enough (large blocks as u told). plus they are giving a % of their yearly profits to the bond holders so how much do u think u will get by investing 10,000 dhs after one year??

I'm thinking of setting up an investment scheme (known as the "I can't believe it's not a lottery") which will work as follows:

1. you buy investment units for each investment period
2. An investment period is defined as one calendar month
3. The price for each unit is fixed at 1 Dhiram
4. All units purchased in the investment period go into the 'Dubai greatest accumulation pot'

And, wait for it, the way the system works is...

5. At the end of the month 50% of the 'Dubai accumulation pot' goes to the person who has purchased the greatest amount of units!!

For example, if 100,000 people subscribe to 10 units each and you subscribe to 11 units (for 11 dhs), you will get a return at the end of the month of 500,005.5 Dhs!!!!!!!

Incredible, but true... no draws, no notion of gambling.. just a simple investment where you just have to be smarter than your fellow investors..it's fair as the one with the biggest buck wins (so should appeal to all you guys out there).

So, roll up, rollup - the first draw is at the end of May... cash and cheques only for now.

But Shaf.........................................

You know i will win

this is where you're wrong, if 50% goes to the biggest investor who gets the other 50%? so for 0 investment Shaf is a happy little camper who got half of your "investment'.