Saudi Arabia opens October 'Sah' Sukuk offering 4.83% return

06/10/2025 03:51 AST

Saudi Arabia has opened subscriptions for its October issuance of the government-backed "Sah" savings sukuk, offering investors an annual return of 4.83 percent, slightly lower than the 4.88 percent offered in September.

The subscription window runs from 10 a.m. on Oct. 5 to 3 p.m. on Oct. 7, according to the National Debt Management Center. Allocation is scheduled for Oct. 14, while redemption will take place between Oct. 19 and 21, with payments disbursed on Oct. 26.

The sukuk initiative is part of the 2025 issuance calendar managed by the Ministry of Finance's National Debt Management Center and is designed to strengthen the domestic savings market and broaden financial inclusion.

Launched under the Financial Sector Development Program - a core element of Vision 2030 - Sah aims to raise the national savings rate to 10 percent by 2030, up from about 6 percent currently. The initiative reflects the Kingdom's ongoing efforts to provide Shariah-compliant investment opportunities for individual investors.

With a minimum subscription of SR1,000 ($266) and a maximum of SR200,000 per individual, the offering forms part of the NDMC's strategy to expand the domestic sukuk program, enhance financial inclusion, and diversify investment opportunities for the public.

The sukuk, denominated in Saudi riyals, carries a one-year maturity and offers fixed returns paid at redemption. Subscriptions are available exclusively to Saudi nationals aged 18 and above through approved investment platforms, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital.

In mid-September, the NDMC announced the completion of investor subscriptions for that month's issuance, with a total allocation of SR8.036 billion.

According to a statement from the center at that time, the issuance was divided into five tranches: the first tranche amounted to SR1.240 billion maturing in 2027. The second tranche totaled SR1.053 billion with a maturity in 2029, while the third amounted to SR795 million and will mature in 2032.

The fourth tranche totaled SR1.271 billion and will mature in 2036, and the fifth tranche amounted to SR3.677 billion with maturity in 2039.

Unlike conventional bonds, the sukuk's returns are structured to comply with Shariah principles. Designed as a secure, low-risk savings instrument, it carries no fees and offers easy redemption, with returns aligned to prevailing market benchmarks.

Arab News