Arab News, Mon, Mar 04, 2024 | Shaban 23, 1445
Saudi ‘Sah’ savings product second round opens, offering 5.63% return
Saudi Arabia:
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.