Arab News, Mon, Apr 22, 2024 | Shawwal 13, 1445
KSA begins 3rd round of 'Sah' savings offerings with 5.59%
return
RIYADH: Saudi Arabia has opened its third round of the
subscription-based savings product, Sah, for April, offering a 5.59 percent
return, encouraging financial stability and growth among citizens.
The Shariah-compliant, government-backed sukuk commenced on April 21 and is
scheduled to continue until April 23, with redemption amounts set to be paid
within a year, as disclosed by the National Debt Management Center in a
release on X.
Organized by the NDMC and issued by the Ministry of Finance, these fee-free
saving products offer low-risk returns and are distributed through digital
channels of various approved financial institutions.
In March, Hani Al-Madini, CEO of the NDMC, explained in a release 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, takes the form of
bonds under the Kingdom’s local bonds program, denominated in Saudi riyals.
It further 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.