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Saudi Arabia Launches 10th Round of Sah Savings Product with 4.83% Return to Promote Financial Inclusion

Saudi Arabia has launched the 10th round of its Sah savings product, offering a tempting 4.83% return on investment. The government-backed scheme has financial stability and growth for its economy as primary aims; it is Shariah compliant, and only accessible to Saudis. The sukuk subscriptions will open on December 1 and close on December 3, with allocation to take place on December 10. Redemption will be done between December 15 and 18, and payments will be made on December 22 in accordance with the NDMC 2024 product issuance calendar.

Sah is a low-risk, fee-free savings product, structured as bonds within Saudi Arabia’s local bond program, managed by the NDMC and issued by the Ministry of Finance. It will be available through the digital platforms of authorized financial institutions. The product targets individuals and supports the Kingdom’s Vision 2030 objective of increasing the national savings rate from 6% to 10% by 2030.

The minimum subscription amount is SR1,000 ($266), which represents one bond, and the maximum amount is SR200,000 for each participant. Only Saudi nationals aged 18 years and above are eligible for subscription. The savings period is one year, during which fixed monthly returns will be paid according to the issuance calendar. Accrued yields will be distributed at maturity, while future returns will depend on prevailing market conditions.

Eligible clients must open accounts with one of five sanction banks: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Bank. Sah’s 9th round, which began on November 3, yielded slightly more at 4.89% and closed with a total amount of SR3.415 billion ($990 million). This was split into five tranches, each with a different maturity period, which further supported the objective of improving financial inclusion while encouraging a savings culture.

Looking forward, NDMC will partner with banks, fintech companies, and other financial institutions to design savings products that cater to the diverse needs of different people, in accordance with the broader objectives of stimulating economic participation and national savings in Saudi Arabia.