https://arab.news/vawxx
RIYADH: Saudi residents can once again boost their savings rates with the commencement of the second round of subscriptions for the savings product “Sah” on March 3.
The Shariah-compliant, government-backed sukuk offers a return of 5.63 percent, and redemption amounts are scheduled to be paid within a year, as disclosed by the National Debt Management Center in a release on X.
These sukuk are issued by the Ministry of Finance and organized by the NDMC.
The second-round subscription started on March 3 at 10 a.m. and runs until March 5 at 3 a.m.
Hani Al-Madini, CEO of the NDMC, explained that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.
Sah, the first savings product designed for individuals, adheres to Islamic Shariah principles. It takes the form of bonds under the Kingdom’s local bonds program, denominated in Saudi riyals.
It supports the Financial Sector Development Program, part of Saudi Vision 2030, aimed at raising the savings rate among residents from as low as 6 percent to the international standard of 10 percent by 2030.
The minimum subscription amount is set at SR1,000 ($266), equivalent to the value of one bond, while the maximum is SR200,000 for total issuances per user during the program period.
The product is allocated for individuals, with returns provided on a monthly basis in accordance with the issuance calendar.
The saving period is one year with a fixed return, and accrued yields are disbursed at the end of the sukuk’s term. Future returns will be determined based on month-to-month market conditions.
The product is open to Saudi nationals aged 18 and above. To participate, individuals must open an account with either SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.