Saudi Arabia Launches Fifth Round of Sah Savings Product, Offering 5.55% Return
In a bid to promote financial stability and growth among citizens, Saudi Arabia has opened its fifth round of the subscription-based savings product, Sah, for June. The Shariah-compliant, government-backed sukuk offers a 5.55 percent return and aims to encourage Saudis to enhance their saving habits.
Details of the Program
The Sah program started on June 23 and will run until June 25, with redemption amounts scheduled within a year. Managed by the National Debt Management Center (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.
Alignment with Vision 2030 Goals
The Sah sukuk aligns with the Financial Sector Development Program, a key initiative of Saudi Vision 2030. The program aims to increase the national savings rate from the current 6 percent to the international standard of 10 percent by 2030. The minimum subscription amount is SR1,000 ($266.43), while the maximum is SR200,000.
Benefits for Participants
Sah is available to Saudi nationals aged 18 and above who open an account with approved financial institutions. It offers attractive returns aligned with prevailing market rates and allows participants to redeem their investments according to the published annual calendar.
Future Initiatives
The CEO of NDMC, Hani Al-Medaini, highlighted that the Sah sukuk aims to foster private-sector collaboration. Future initiatives include developing and launching tailored savings products for various individual categories through different financial entities.
Al-Medaini stated: “Issuing Sah is a great financial initiative to encourage people to save and enhance financial inclusion in the Kingdom. It will not only benefit Saudi individuals but also have a positive impact on the national economy, stimulating economic growth and elevating national savings rates to international standards.”
Conclusion
With the launch of the Sah savings product, Saudi Arabia is taking steps to promote a culture of saving and financial stability among its citizens, in line with the goals of Vision 2030. Participants can look forward to low-risk returns and the opportunity to contribute to the growth of the national economy.