RIYADH: Saudi Arabia has launched the ninth round of its subscription-based savings product, Sah, for November, offering a competitive return of 4.89 percent.
The initiative aims to promote financial stability and growth among citizens.
The Shariah-compliant, government-backed sukuk began on Nov. 3 and will remain open until Nov. 5. Redemption amounts are expected to be paid within a year, as announced by the National Debt Management Center on X.
Organized by the NDMC and issued by the Ministry of Finance, these fee-free savings products provide low-risk returns and are available through the digital platforms of various approved financial institutions.
Sah is the first savings product specifically designed for individuals, taking the form of bonds within the Kingdom’s local bonds program, denominated in Saudi riyals. It supports the Financial Sector Development Program, part of Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international standard of 10 percent by 2030.
The minimum subscription amount is set at SR1,000 ($266), corresponding to the value of one bond, while the maximum is SR200,000 for total issuances per user during the program period. The product is aimed at individuals, with monthly returns provided according to the issuance calendar.
The saving period lasts one year, with a fixed return, and accrued yields are disbursed at the end of the sukuk’s term. Future returns will be influenced by month-to-month market conditions.
The product is open to Saudi nationals aged 18 and above, who must open an account with one of the following: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.
In October, the Kingdom launched its eighth round of the Sah program, offering a 4.92 percent return, while the seventh round in September provided a return of 5.31 percent.
NDMC CEO Hani Al-Medaini has emphasized that the sukuk aims to foster private sector collaboration. Future initiatives will focus on developing tailored savings products for various individual categories through banks, fund managers, fintech companies, and other institutions.
Al-Medaini noted that the issuance of Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion, ensuring access to products and services that meet the needs of individuals, such as savings accounts like Sah.
