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.
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 Capital are also eligible options.
Moreover, it offers attractive returns aligned with prevailing market rates, leveraging government backing to ensure it remains a low-risk financial instrument.
Participants can redeem their investments according to the published annual calendar; however, early withdrawals forfeit accrued returns and profits.
In February, Hani Al-Medaini, CEO of the National Debt Management Center, highlighted that the sukuk aims to foster private-sector collaboration. Future initiatives include developing and launching tailored savings products for various individual categories through banks, fund managers, financial technology companies, and others.
“I believe that issuing Sah is a great financial initiative led by the Saudi government to encourage people to save and enhance financial inclusion in the Kingdom. This initiative entitles everyone to access financial products and services that meet their needs, such as having a bank account or savings product like Sah,” Al-Madini said at the time.
The CEO further added: “It will not only benefit Saudi individuals by encouraging them to save, but it will also have a positive impact on the national economy. It is expected to stimulate economic growth and elevate national savings rates to international standards.”