The Saudi Ministry of Finance, in partnership with the National Debt Management Center (NDMC), has introduced a new government-backed savings product for individuals called “Sah.” The name is derived from the Arabic acronym for “Government Sukuk” (Sukuk Hukumeah).
According to Abdulaziz Alfuraih, Chairman of the Ministry’s Steering Committee, this launch is part of the Financial Sector Development Program under Saudi Vision 2030. He stated that the initiative aims to raise individual savings rates by encouraging citizens to regularly set aside a portion of their income. It also seeks to broaden access to savings products and promote financial literacy by emphasizing the importance and benefits of saving for future goals.
Hani Almedaini, Chief Executive Officer of the NDMC, said these sukuk are part of a local Saudi Riyal-denominated program and will be issued monthly based on an announced calendar for “Sah.” He added, “this initiative serves as an incentive for the private sector to collaborate and participate in developing and launching various savings products targeting specific objectives for different groups of individuals, whether through banks, fund managers, fintech companies, or other channels.”
The Shariah-compliant “Sah” product will offer competitive returns and be available through digital platforms provided by several financial institutions such as SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest, and Al Rajhi Capital.
The first subscription period for “Sah” is scheduled from February 4th to 6th, 2024. More information about the product and its issuance calendar can be found at this link: Click here
