RIYADH: Saudi Arabia has initiated the ninth installment of its subscription-based savings scheme, Sah, for the month of November, providing an attractive return rate of 4.89 percent.
This program is designed to bolster financial stability and growth among the populace.
The government-supported, Shariah-compliant sukuk commenced on November 3rd and will be accessible until November 5th. Redemption amounts are slated to be disbursed within a year, as per the announcement by the National Debt Management Center on X.
Coordinated by the NDMC and issued by the Ministry of Finance, these commission-free savings instruments offer low-risk returns and are accessible via the digital portals of several accredited financial entities.
Sah represents the inaugural savings product tailored for individuals, structured as bonds under the Kingdom’s domestic bonds framework, denominated in Saudi riyals. It aligns with the Financial Sector Development Program, an integral component of Saudi Vision 2030, which targets elevating the savings rate among residents from 6 percent to the global benchmark of 10 percent by 2030.
The minimum subscription threshold is set at SR1,000 ($266), equivalent to the value of a single bond, whereas the maximum is SR200,000 for aggregate issuances per participant during the program’s duration. The offering is directed at individuals, with monthly returns distributed in accordance with the issuance schedule.
The savings tenure spans one year, featuring a fixed return, and accumulated yields are paid out at the conclusion of the sukuk’s term. Future returns will be contingent upon monthly market dynamics.
The product is available to Saudi nationals aged 18 and older, who must establish an account with one of the following entities: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.
In October, the Kingdom unveiled its eighth iteration of the Sah program, delivering a 4.92 percent return, whereas the seventh edition in September offered a return of 5.31 percent.
Hani Al-Medaini, CEO of NDMC, has highlighted that the sukuk endeavors to cultivate private sector partnerships. Forthcoming initiatives will concentrate on crafting bespoke savings products for diverse individual segments through banks, fund managers, fintech firms, and other institutions.
Al-Medaini underscored that the issuance of Sah constitutes a pivotal financial endeavor by the Saudi government to stimulate saving and augment financial inclusion, guaranteeing access to products and services that cater to individual needs, such as savings accounts like Sah.
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