Government of Dubai acquires 50% ownership stake in National Bonds

The details of the acquisition will be revealed after the necessary approvals are obtained from the Central Bank and the Ministry of Economy and Planning. As a result of the acquisition shareholding partners, Dubai Bank, Dubai Holding and Emaar Properties, will now hold 16.66% each of National Bonds Corporation's shares.

The decision made by ICD to own 50% of National Bonds shares will further add to bond holders' confidence while acting as an incentive for residents of the UAE to save locally in a Shari'a compliant savings scheme.

Mr. Mohammed Al-Shaibani, CEO of Investment Corporation of Dubai, commented, "We have carefully monitored the fast growth and success of National Bonds since the launch of sales in March 2006. This assessment carried out by the Government of Dubai has shown that National Bonds has investments worth AED 3 billion. To date 50% of the total investments have been announced and it is expected that the remaining 50% will be announced by the end of the year. National Bonds has reinvested capital leveraged from the scheme into several public sectors including education, namely Madaares, and real estate projects. Through its program of investments National Bonds will actively support the economic growth of the UAE."

Mr. Mohammed Al-Shaibani continues, "At a time when the Government is at the forefront of successful and safe investments, it looks towards credible ventures such as National Bonds which has proven to be a ground breaking initiative in the UAE."

Nasser bin Hassan Al Shaikh, Vice Chairman and CEO of National Bonds, stated

"The investment from the Government of Dubai is a result of the continued success of National Bonds. The acquisition will reinforce the scheme and further encourage all segments of the community to participate in the National saving scheme. Furthermore, the support from the Government of Dubai will contribute to the expansion of National Bonds to countries outside the UAE."

In addition, the Government of Dubai will now join the Central Bank of the UAE and external auditors in monitoring the operations of National Bonds Corporation.

Nasser bin Hassan Al Shaikh continues, "I would like to take this opportunity to thank our 190,000 bondholders for their trust in the company. Without God's will, the backing of His Highness Sheikh Mohammed bin Rashid Al Maktoum - Vice President and Prime Minister of the UAE and Ruler of Dubai - and our bondholders' continued support, we could not have achieved such success."

National Bonds are available in over 150 outlets across the UAE. Priced at AED 10 per bond and available in a minimum purchase of AED 100, National Bonds offer all participants a safe and credible savings option whilst simultaneously providing people with a unique opportunity to win 4 million Dirhams in every monthly draw.

The scheme which is available to UAE residents and non residents provides people with a unique and innovative Shari'a compliant savings mechanism based on the Islamic principle of Mudaraba. At the end of the financial year, profits made by National Bonds will be determined and 20% of this amount will be distributed amongst bond holders. The distribution will be according to the number of bonds held by an individual, and for the time period the bonds were held, during the related financial year.