Each National Bond is a saving certificate (mudaraba certificate). These saving certificates represent the pool of funds received from the Bond Holders and which are held by and invested and managed on their behalf by National Bonds Corporation PJSC, as the Mudareb, in accordance with the Islamic Shari'a.
A National Bond represents an undivided share in the Mudaraba Assets and also represents an entitlement to a share of the Distributable Profits generated by the Mudaraba Assets.

And where is this money used? Your money is used to fund a project or several projects, which upon completion starts making its own revenue and returns your money along with a profit.

Say, for instance, you buy a bond with an AED 1,000 face value, a 5% interest and a 10-year maturity. You would collect interest payments totalling AED 50 in each of those 10 years. When the decade is up, you would get back your AED 1,000 and walk away with an impressive profit of AED 500.

So what is an Islamic Bond?

An Islamic bond follows the principles of Shari’a, investing your money as per Islamic principles, supervised by a board of directors and financed by a Mudareb Fund.