Arab News
Arab News, Mon, Feb 03, 2025 | Shaaban 4, 1446
KSA launches February ‘Sah’ savings with 4.94% return
Saudi
Arabia: Saudi Arabia has launched the second round of its subscription-based
savings product, Sah, for 2025, offering a competitive return of 4.94 percent
for February.
Issued by the Ministry of Finance and organized by the National Debt Management
Center, the Sah bonds are the Kingdom’s first savings product designed
specifically for individuals.
Structured within the local bond program and denominated in Saudi riyals, Sah
offers attractive returns to promote financial stability and growth among
citizens.
The product aligns with the Financial Sector Development Program under Saudi
Vision 2030, which aims to raise the savings rate among residents from 6 percent
to the international benchmark of 10 percent by the end of the decade.
The Shariah-compliant, government-backed sukuk began at 10:00 a.m. Saudi time on
Feb. 2 and will remain open until 3:00 p.m. on Feb. 4. Redemption amounts are
expected to be paid within a year, as announced by the NDMC on X.
Sah offers fee-free, low-risk returns and is available through the digital
platforms of various approved financial institutions. The bonds are issued
monthly based on the issuance schedule, with a one-year savings period, fixed
returns, and profits paid out at the bond’s maturity.
The minimum subscription amount is SR1,000 ($266), corresponding to the value of
one bond, while the maximum total issuance per user during the program period is
SR200,000. Returns are paid monthly per the issuance calendar.
The savings period lasts one year with a fixed return, and accrued profits are
disbursed at the bond’s maturity. Future returns will be influenced by market
conditions on a month-to-month basis.
The product is available to Saudi nationals aged 18 and older, who must open an
account with either SNB Capital, Aljazira Capital, Alinma Investment, SAB
Invest, or Al-Rajhi Capital.
Last month, NDMC announced the closure of the year’s first issuance with a total
amount allocated of SR3.724 billion. It was divided into four tranches, with the
first valued at SR1.255 billion to mature in 2029 and the second worth SR1.405
billion, maturing in 2032. The third tranche totaled SR1.036 billion to mature
in 2036, while the fourth amounted to SR28 million and matures in 2039.
The initial 2025 issuance concluded on Jan. 7, offering a competitive return of
4.95 percent over its three-day subscription period.