Provider Spotlight: National Bonds
Next in our series profiling the licensed providers of the UAE's alternative End of Service Benefit (EOSB) savings scheme — one Fund Manager at a time, in alphabetical order.
Lunate and Daman Investments were the first two providers cleared by the Capital Markets Authority (CMA) and MoHRE, however, National Bonds followed shortly after, becoming the third approved provider in October 2024. Its fund was launched late 2025, and since then National Bonds have picked up the first private-sector clients and settled into a clearly Shariah-first, government-backed positioning that's distinct from the rest of the field.
Who is National Bonds?
National Bonds Corporation launched in 2006 with a mandate to build a savings culture in the UAE, and it's wholly owned by the Investment Corporation of Dubai — the Dubai government's sovereign investment arm. Over nearly two decades it has built up a large retail savings base (National Bonds cites more than 900,000 customers to date) and, more recently, branched into workplace savings: it's also an approved investment option under the DIFC's DEWS plan. That combination of government ownership and a long retail track record gives it a different flavour of credibility to the independent asset managers also competing in this space.
The EOSB offering
National Bonds currently offers a single fund only: the National Bonds Capital Protected Shari'a Compliant Fund. It invests exclusively in Shariah-compliant bank deposits and sovereign UAE Sukuks, targets money market-like returns, and is capital protected by design — though, as the fund's own FAQ is careful to note, that protection comes from the credit quality of the underlying assets, not a guarantee from National Bonds or any insurer.
A few features stand out:
UAE-only exposure. Unlike some rivals' funds, this one invests solely within the UAE.
Daily profit distribution, paid out as new units rather than cash.
Zero subscription and redemption fees, and no fees at all for employees.
0.75% annual management fee, charged to the fund's assets.
Voluntary employee top-ups (so-called "AVC's") of up to 25% of annual salary — though National Bonds notes this feature isn't switched on from day one and will be enabled later, with employers notified when it is.
Employees can keep their money invested with National Bonds after leaving the enrolling employer, and — as with the scheme generally — unskilled workers are restricted to the capital-protected option, while skilled workers will get the choice of other risk profiles if and when National Bonds decides to launch them (but so far there has been no announcement about further funds yet).
Who's behind the scenes
National Bonds names a strong bench of partners: Standard Chartered Bank as fund administrator and custodian, Ernst & Young as auditor, Baker McKenzie as legal advisers, and Minhaj Advisory as Shariah supervisory adviser. National Bonds itself acts as both fund manager and scheme registrar.
Real-world traction
In December 2025, Harbour Real Estate became the first private-sector company in the UAE to sign up to the scheme via National Bonds — a useful proof point. It's a reminder that “licensed” and “actually enrolling companies” aren't the same milestone, and National Bonds is now well past both.
The bottom line
National Bonds brings a single, tightly-defined Shariah-compliant fund, backed by government ownership and a deep bench of institutional partners. For sure National Bonds' offering is a narrower compared to some other competitors — no conventional (non-Shariah) option yet, and no risk-based funds yet. However, for some employers this might be well suited: Companies who specifically want a Shariah-compliant, UAE-focused, government-backed provider, with many blue collar workers for whom risk-based funds aren't accessible anyway, this might be a very strong fit indeed. For those wanting a broad choice of fund options from day one, it's worth watching for National Bond's further fund launch announcements.
For help comparing and evaluating providers for your organisation please get in touch with us.
GratuityAdviser is operated by Lux Actuaries Financial Consulting L.L.C., which holds a Category 5 (Financial Consultations and Introductions) licence from the UAE Capital Markets Authority.
