"National Instruments": The Corona crisis has both positive and negative impacts
The decrease in rents during 2020 will raise the saving rates for individuals and families
"National Bonds": The number of transactions through the company's mobile application and website increased by 104% compared to 2019. From the source
Muhammad Qasim Al-Ali: "It is planned to increase the number of programs aimed at enhancing awareness of the importance of saving."
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The National Bonds Corporation stated that the Corona crisis strengthened the culture of saving in society, as many realized the importance of saving, especially as this crisis negatively affected some individuals and families, and plunged them into financial problems.
The company confirmed, in exclusive statements to "Emirates Today", that just as the crisis had negative effects on some, it had positive effects on others, as some benefited from the crisis by maximizing their savings rates by making use of spending items that could be saved. Of them, including the item of rents, which decreased by a good rate during 2020.
World economies
In detail, the CEO of the National Bonds Corporation, Muhammad Qasim Al-Ali, said that “all the world's economies have been affected by the epidemic that has swept the globe, which naturally affected the economies of individuals and families, and the habits of consumers, investors and savers were also affected, of course, by the repercussions that this left The global pandemic ».
He added that «the pandemic has its negative and positive effects, as the (Corona) crisis strengthened the culture of saving in society, and many realized the importance of saving, especially since this crisis has ravaged some individuals and families and plunged them into financial problems, as this crisis contributed to modifying the behavior of individuals and families, from During the rationalization of consumer spending and the trend towards saving ».
He pointed out that some people benefited from the crisis by maximizing savings rates by making use of spending items that could be saved, including the rents that decreased by a good rate during 2020, as the company’s figures confirmed the decline in consumer spending by many individuals and families. On the other hand, the surplus income increased due to the correction in the level of residential rents, and this was evident in the increase in the amount of money saved in general, as our figures indicate that the savings of individuals in general increased by about 21% compared to the year 2019, and the transactions executed through "National Bonds" also increased. About 8%.
The importance of saving
Regarding how the company has dealt with the pandemic, Al-Ali said: “The pandemic has only increased our insistence on the validity of our vision of the importance of saving. Therefore, it is planned to increase the number of programs that aim to enhance awareness of the importance of saving, in addition to launching programs dedicated to individuals and institutions that encourage them to do so. This is in the context of the social responsibility that we have, and in fulfillment of the message that we believe in that saving contributes to supporting the economy and accelerating the pace of recovery from any crisis that the economy may go through, especially as it is able to create new job opportunities and investments, and thus accelerate the economic wheel.
Regarding the company's implementation of restructuring plans commensurate with the crisis, he added: “The company, of course, must be flexible in dealing with the development of events in the markets, and it has benefited from the repercussions of Corona and the positive change in the consumption pattern of a large segment of the population.”
And Al-Ali added: “Our low-risk investment plan is bearing fruit in the midst of the challenges facing the global economy, and the (Corona) crisis has contributed to some articulated changes, as we have begun to pour all our focus on electronic services, given that it has become at the forefront of services preferred by the public. ».
The current crisis
Al-Ali pointed out that «from an economic point of view, the financial crisis in 2008 cannot be compared to the (Corona) crisis and its effects in general, just as the company's performance at that time cannot be compared to its performance now, and although in 2008 we were practically a newly established company, but we were able to achieve Good results, and in light of the (Corona) crisis, our business was not affected by the pandemic, but increased due to the decrease in the rates of random consumption, especially with the decrease in rental and housing prices, and the focus on balanced and necessary spending, in addition to saving as a means to secure a financial safety net, especially in cases of non Certainty, like the circumstance that the world is going through during (Corona) ».
He said: “The next strategy is electronic transformation, especially since the (Corona) crisis contributed to increasing digital awareness among all segments of society, which is what we saw among our customers during the pandemic period, as the number of operations that took place through our mobile application and website increased by 104%, Compared to 2019, while savings increased by 158% during the same period, and the positive of these numbers reveals a clear trend among large groups of the public towards technology and digital transformation, so the next trend will focus on increasing support for these channels to reach the largest number of all segments of the UAE society. .
He continued, "There is no doubt that the economic packages pumped by the state into the UAE economy, in addition to the regulations that the state applies, have contributed to restoring the economy to its previous state in a record period, which will positively affect all companies operating in the country."
He added: “I also think that now is a very good time to convince people of the importance of saving and investment, and it is also one of the assisting factors, especially those who have not yet started. The saving and investment programs of low risk are a rescue tool when any emergency occurs, and perhaps the (Corona) crisis was the largest. An emergency that humanity has faced for decades. ”
860,000 saved
The CEO of National Bonds Corporation, Muhammad Qasim Al-Ali, stated that the number of Sukuk holders has reached about 860,000 savers and investors, most of whom are Arab citizens and residents, especially Jordanian, Syrian and Egyptian nationalities, in addition to residents of the Indian and Pakistani communities.
Savings for emergency conditions
The CEO of National Bonds Corporation, Muhammad Qasim Al-Ali, affirmed that the most important advice that can be provided in light of "Corona" is the necessity of regular saving for emergency conditions. This good habit enables all members of society to overcome any difficulties, no matter how severe, and now with the availability of digital tools and services. Developed anywhere and anytime, there are no excuses for not saving, especially with the increase of awareness among all segments of society, and he asked companies to encourage their employees to engage in regular saving programs for employees.
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