Saudi Arabia launches 5th ‘Sah’ savings product offering 5.55% return

RIYADH: Saudi Arabia Launches Fifth Round of ‘Sah’ Savings Product Offering 5.55% Return

Saudi Arabia has launched the fifth round of its popular ‘Sah’ savings product, aimed at promoting financial stability and fostering a culture of savings among its citizens. This subscription-based savings initiative, which offers an attractive 5.55 percent return, underscores the Kingdom’s commitment to enhancing economic resilience and supporting personal financial management.

The ‘Sah’ savings product, managed by the Ministry of Finance and organized by the National Debt Management Center (NDMC), operates on a Shariah-compliant and government-backed sukuk model. It allows Saudi nationals to invest in a low-risk financial instrument that guarantees secure returns while contributing to national economic objectives.

Announced on June 23, the subscription period for the fifth round of ‘Sah’ runs until June 25, with redemption expected within a year. This initiative is part of Saudi Arabia’s broader strategy under the Financial Sector Development Program, aligned with the ambitious goals of Saudi Vision 2030. One of the key targets of this vision is to increase the national savings rate from its current 6 percent to the international standard of 10 percent by 2030, thereby strengthening the country’s economic foundation.

Participants in the ‘Sah’ savings program can subscribe with a minimum amount of SR1,000 ($266.43), which equates to the value of one bond, and can invest up to SR200,000 during the program period. The product is accessible through digital channels offered by approved financial institutions such as SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al Rajhi Capital.

The ‘Sah’ sukuk not only provides a secure avenue for investment but also supports financial inclusion by encouraging Saudi individuals aged 18 and above to engage in systematic savings. This initiative is strategically designed to promote responsible financial behavior and prepare individuals for future financial stability.

Moreover, the ‘Sah’ savings product aligns with Saudi Arabia’s efforts to diversify its economy and reduce dependence on oil revenues. By encouraging savings and investment in the local economy, it aims to stimulate economic growth and enhance overall economic resilience.

Hani Al-Medaini, CEO of the National Debt Management Center, has highlighted the collaborative nature of the ‘Sah’ sukuk, emphasizing partnerships with the private sector to expand financial products and services. Future plans include developing tailored savings products for different segments of society in collaboration with banks, fund managers, and financial technology companies.

In summary, the launch of the fifth round of the ‘Sah’ savings product represents a significant step towards achieving Saudi Arabia’s economic goals under Saudi Vision 2030. It not only encourages savings and investment but also promotes financial inclusion and economic resilience, positioning the Kingdom for sustainable growth and prosperity in the years to come.