So I did a , the UAE's savings-slash-raffle scheme, moving to weekly drawings (they had previously done monthly draws). A lot of readers had questions, so I posed them, along with a few of my own, to the folks who run the place. Here is what they had to say: <b>One reader of the blog asked the following question: "I am considering investing in National Bonds as are other members of my family. Is it a wise choice considering Dar's $100M sukuk default? How will this affect certificate holders? Will the yearly interest rate also be affected?"<br/></b> National Bonds Corporation PJSC provides a safe, transparent and a Sharia compliant savings opportunity that is preferred by many people across the UAE Nationals and Expatriates alike - with over 500,000 bondholders across 91 nationalities now saving with us and by giving them a chance to win 101 weekly prizes, the top prize being AED 1 million and the remaining prizes from AED 500 to AED 10,000. While National Bonds cannot comment directly on the particular situation involving Investment Dar we can disclose that we have no ties or investments with Investment Dar. We can assure you that our investments are sufficiently diverse, such that no single event or company will significantly affect the profit rate we return to our bondholders. Our investment strategy is designed to mitigate risk. While sukuk is part of this, we also invest in a broad range of other short-term Sharia-compliant assets. Our bondholders' money is also invested in longer-term infrastructure and income related projects. Because National Bonds manages people's savings, we are very cautious with our investments. To ensure we invest safe and sound, we have a dedicated, qualified investment team headed by a highly qualified Chief Investment Officer with 25-years international experience in the industry with leading financial institutions. He reports regularly to NBC's investment committee, which monitors the investments portfolio reporting itself to NBC's Board of Directors. <b>National Bonds posted a handsome profit rate last year: over 7 per cent. At this juncture in the middle of the year, how are things going? Are you anticipating that you'll be able to match or exceed the profit rate of last year?</b> This is true - National Bonds returned an impressive profit rate of over 7 percent last year and over 6 percent in 2007 vs. comparable savings schemes. Although it's is not possible to determine in advance this year's profit rate, the first half has been positive for National Bonds and we foresee to remain as competitive in 2009 as we have been in the past. <b>What kind of investments or what sectors is National Bonds investing in this year? Are you changing your investment focus now that it appears the UAE's economy might be on a rebound? Are you looking to take a mostly aggressive or conservative stance?</b> This year we are adding to our already diverse investment portfolio and concentrating on lower-risk investments. We continue to invest the bulk of our assets in a mix of short-term assets including sukuks and other Shariah-compliant products. Because we are dealing with people's savings, we need to be very prudent about how we invest. Our investment choices do tend to be more conservative and we focus on assets that are aligned with our commitment to provide a safe, secure and Sharia-compliant way for our bondholders to save. <b>So far it appears that National Bonds has invested mainly in the UAE - Souq Extra, BCS and other National Bonds initiatives are all based here. How important are investments outside of the UAE, either in the GCC or elsewhere, to your overall portfolio?</b> National Bonds Corporation PSJC firmly believes that investing back in the UAE with a community driven approach by making a difference in people's everyday lives. Our investments are diverse from property development projects, to educational like Taaleem PJSC, which is an initiative aimed at raising quality standards in the region's education sector, BCS - providing strata management services, Souq Extra - Retail Community Shopping Chain and in private equity firms like M'sharie, the private equity arm of Dubai Investments. We will always look at opportunities to expand National Bonds Corporation (PJSC) to reach more countries within the GCC and further abroad with our objective of serving the bondholder's best interest regardless of location. <b>You announced recently that you have moved to weekly draws (the draws had been monthly before). Why did you decide to do this, and have you seen sales jump as a result?</b> National Bonds Corporation PJSC aims to position itself as "everyone's favorite place to save & invest". As such, the draw format change is aimed to encourage more people to save and get rewarded on their savings. National Bonds hopes to fulfil the aspirations of many more bondholders and see even more "Millionaires" in the National Bonds family. This year, we are committed to increase the number of savers and hope the existing bondholders increase their bond value through numerous initiatives like the new draw format, further expansion of the distribution network and introduction of innovative products and services. We have seen an encouraging trend in sales in the first half and are expecting a 100% growth by end 2009.