Saudi Arabia has launched the sixth round of its subscription-based savings product, Sah, for August, offering a competitive return of 5.48 percent. The subscription period began on August 4 and will run until August 6. This initiative is designed to enhance financial stability and promote saving among Saudi citizens.
Sah, a Shariah-compliant sukuk, is managed by the National Debt Management Center and issued by the Ministry of Finance. It is characterized by its low-risk nature and absence of fees, making it accessible through the digital platforms of approved financial institutions. This new round of Sah is part of a broader strategy to cultivate a savings culture by encouraging individuals to consistently set aside a portion of their income.
The sukuk supports Saudi Vision 2030’s Financial Sector Development Program, which aims to increase the national savings rate from the current 6 percent to a global benchmark of 10 percent by 2030. By providing an easy and structured investment option, Sah contributes to this ambitious objective.
Subscriptions for Sah start at a minimum amount of SR1,000 ($266.39), which represents the value of one bond, and the maximum subscription limit is SR200,000, allowing individuals to purchase up to 200 bonds during this period.
The Sah product is available to Saudi nationals aged 18 and older who open an account with SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital. It offers attractive returns aligned with current market rates and benefits from government backing, ensuring it remains a low-risk investment.
Participants can redeem their investments based on the annual calendar; however, early withdrawals will result in the forfeiture of accrued returns and profits. Hani Al-Medaini, CEO of the National Debt Management Center, noted in February that the sukuk aims to encourage private-sector collaboration and future initiatives will focus on creating tailored savings products through banks, fund managers, and financial technology companies.
