Saudi Arabia opens August 'Sah' savings sukuk window with 4.97% return

04/08/2025 01:50 AST

Saudi Arabia has announced the opening of the August subscription window for its government-backed savings sukuk, offering an annual return of 4.97 percent, marking an increase from July's 4.88 percent.

The "Sah" sukuk is part of the 2025 issuance calendar overseen by the National Debt Management Center under the Ministry of Finance.

The initiative is aligned with the Financial Sector Development Program, a key pillar of Vision 2030, which aims to elevate the national savings rate from 6 percent to 10 percent by the end of the decade.

Subscription for the issuance opened at 10 a.m. Saudi time on Aug. 3 and will remain available until 3 p.m. on Aug. 5. The sukuk remains Shariah-compliant, denominated in Saudi riyals, and structured with a one-year maturity, offering fixed returns upon redemption.

The minimum subscription amount is set at SR1,000 ($266.58), with a maximum cap of SR200,000 per investor.

Individual investors aged 18 and above can participate through approved digital channels, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital.

As the Kingdom's first retail-oriented, government-backed savings instrument, "Sah" is designed to enhance personal financial planning and encourage disciplined savings habits among individuals.

The product offers several features to make savings accessible, including zero subscription fees, a simplified digital onboarding process, and flexibility in redemption, allowing subscribers to withdraw their funds during specified windows without penalties on the principal amount.

The sukuk is issued in the form of lease-based structures, ensuring compliance with Shariah principles, and does not qualify as a tradable security on the Saudi financial market.

The NDMC said the return rate for each issuance is determined based on prevailing market conditions, which may vary month to month.

"Sah" sukuk are considered low-risk, government-guaranteed instruments, contributing to the Kingdom's broader strategy of expanding the range of domestic savings products available to individuals.

The NDMC said the sukuk supports the development of a more robust savings culture while fostering collaboration between public institutions and private financial entities.

Arab News