Arab News, Sun, Jun 23, 2024 | Dhu al-Hijjah 17, 1445
Saudi Arabia offers 5th round of ‘Sah’ savings product with 5.55% return
Saudi Arabia:
Saudi Arabia has opened its fifth round of the subscription-based savings
product, Sah, for June, offering a 5.55 percent return, encouraging financial
stability and growth among citizens.
The Shariah-compliant, government-backed sukuk
started on June 23 and will run until June 25, with redemption amounts scheduled
within a year, as announced 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 savings products provide low-risk returns and are
distributed through digital channels of approved financial institutions.
Sah is the first government sukuk issued aimed at
enhancing saving habits by motivating Saudis to deduct a portion of their income
periodically and allocate it to their savings.
The sukuk aligns with the goals of the Financial
Sector Development Program, a key initiative 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.
Moreover, the release added that the minimum
subscription amount is SR1,000 ($266.43), equivalent to the value of one bond,
while the maximum is SR200,000, allowing up to 200 bonds per user during the
program period.