Saudi Arabia’s second sukuk savings round for March closes at $255.7m

Another savings round is slated for April 21, as per the official calendar for government sukuk.
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Updated 13 March 2024
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Saudi Arabia’s second sukuk savings round for March closes at $255.7m

RIYADH: Saudi Arabia has concluded its second government sukuk savings round for March, with a total volume of requests reaching SR959 million ($255.7 million), allocated to 37,000 applicants.

The National Debt Management Center said in a statement that the financial product, also known as Sah, offers a return of 5.64 percent, with a maturity date set for March 2025.

Looking ahead, the third savings round is slated for April 21, as per the official calendar for government sukuk.

Participants can access the reserve window through the digital channels provided by their respective financial institutions, reflecting Saudi Arabia’s commitment to embracing digitization.

Sah, introduced by the Ministry of Finance and the National Debt Management Center, represents an initiative within the scope of the Financial Sector Development Program, which is one of several of the Kingdom’s  Vision 2030 undertakings.

It aims to increase the fund ratios among individuals by motivating them to allocate a portion of their income to savings periodically.

Additionally, it intends to increase the supply of savings products, raising the awareness around financial literacy and the importance of savings and its benefits for future plans.

It is also Shariah-compliant, offers annual returns, and is easy to subscribe to, it also has no fees for participants and no restrictions on redemption.

In January, a report released by S&P Global suggested that sukuk issuance globally is expected to total between $160 billion - $170 billion in 2024, primarily driven by higher needs in some core Islamic finance countries.

In 2023, global Islamic bond issuance declined by 6.1 percent to $168.4 billion compared to the previous year, due to tighter conditions in Saudi Arabia’s banking system and Indonesia’s lower fiscal deficit.

S&P Global further suggested that sustainable sukuk issuance will also rise in 2024, on the back of the successful UN Climate Change Conference, also known as COP28, which concluded in the UAE last year.

In February, Fitch Ratings said that the environmental, social, and governance market for the Shariah-compliant tool is expected to cross 7.5 percent of global outstanding Islamic bonds in the coming years.

Fitch added that the future growth of the ESG sukuk market will be driven by issuers’ diversification plans and governments’ sustainable initiatives.


Qatar CPI falls in January, annual inflation rises 2.28% 

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Qatar CPI falls in January, annual inflation rises 2.28% 

JEDDAH: Qatar’s consumer price index climbed 2.28 percent in January from a year earlier, official data showed, while registering a 2.22 percent drop from the previous month.

The decline from December was led by an 11.97 percent drop in recreation and culture prices, alongside decreases in miscellaneous goods and services, restaurants and hotels, clothing, food and housing-related costs, Qatar News Agency reported, citing data from the National Planning Council. 

This was followed by miscellaneous goods and services at 3.46 percent, restaurants and hotels at 1.90 percent, clothing and footwear at 1.15 percent, food and beverages at 0.59 percent, and housing, water, electricity, gas, and other fuels at 0.17 percent. 

Qatar’s inflation remains relatively contained compared with wider global price swings, helped by stable housing costs and government subsidies. Across the region, trends are mixed, with Saudi inflation easing to 1.8 percent in January while Egypt’s annual rate slowed to 10.1 percent even as monthly prices jumped. 

“The annual increase, comparing January 2026 with the same month in 2025, was driven by rises in eight groups,” QNA reported, noting that the largest year-on-year increases were seen in miscellaneous goods and services, which rose 12.40 percent. 

Price increases were observed in the transport group at 0.54 percent, followed by communication at 0.32 percent and health at 0.27 percent. Furniture and household equipment rose 0.20 percent and education edged up 0.06 percent, while tobacco recorded no change. 

This was followed by recreation and culture at 4.90 percent and clothing and footwear at 3.25 percent. Food and beverages rose 2.87 percent, furniture and household equipment 2.37 percent, education 2.08 percent, housing and utilities 1.21 percent, and communication 0.40 percent. 

In contrast, QNA further reported, three groups saw annual declines: restaurants and hotels, down 2 percent; health, down 1.38 percent; and transport, down 0.48 percent, while the tobacco group remained unchanged. 

“When calculating the CPI for January 2026 excluding the housing, water, electricity, gas, and other fuels group, the index reached 114.57 points, down by 2.65 percent compared with December 2025, and up by 2.51 percent compared with January 2025,” the QNA report added. 

The index — which tracks inflation across 12 main expenditure groups covering 737 goods and services — is based on 2018 as the reference year, drawing on the Household Income and Expenditure Survey conducted in 2017–2018.