Saudi Arabia launches 7th round of ‘Sah’ savings product with 5.31% return

JEDDAH: Saudi Arabia has launched the seventh round of its subscription-based savings product, Sah, for September, offering a 5.31 percent return to promote financial stability and growth among citizens.

The issuance of these Shariah-compliant, government-backed sukuk began on Sunday and will continue until 3 p.m. on Sept. 3. Bonds will be distributed to investors on Sept. 10, as announced by the National Debt Management Center on X (formerly Twitter).

Subscriptions for Sah start at a minimum amount of SR1,000 ($266.66), which is the value of one bond. The maximum subscription limit is set at SR200,000, allowing individuals to purchase up to 200 bonds during this period.

Issued by the Ministry of Finance and organized by the NDMC, these fee-free savings products offer low-risk returns and are distributed through the digital channels of approved financial institutions.

Sah is the first government sukuk designed to enhance saving habits by encouraging Saudis to set aside a portion of their income regularly.

This initiative aligns with the Financial Sector Development Program, a key component of Saudi Vision 2030, which aims to increase the national savings rate from the current 6 percent to the international standard of 10 percent by 2030.

The Sah product is available to Saudi nationals aged 18 and above who open an account with SNB Capital, Aljazira Capital, or Alinma Investment. SAB Invest and Al Rajhi Bank are also eligible options.

The Sah bonds are issued monthly, with a one-year savings period and a fixed return. Profits are paid out at the bonds’ maturity date.

NDMC CEO Hani Al-Medaini mentioned in February that the sukuk aims to foster private sector collaboration. Future initiatives will include developing and launching tailored savings products for various individual categories through banks, fund managers, financial technology companies, and other institutions.

“I believe that issuing Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion in the Kingdom. It ensures access to financial products and services that meet people’s needs, such as having a bank account or savings product like Sah,” Al-Medaini said at the time.

The CEO also noted that the Sah initiative will not only encourage Saudis to save but will also positively impact the national economy, driving economic growth and raising national savings rates to international standards.

Last month, the NDMC completed its riyal-denominated sukuk issuance for August at SR6.018 billion, marking an 87.22 percent increase compared to July. This figure was the third highest this year, following SR8.82 billion issued in January and SR7.39 billion in April.

In July, Saudi Arabia concluded the issuance of Islamic financial instruments at SR3.21 billion, with amounts reaching SR4.4 billion and SR3.23 billion in June and May, respectively.