‘Sah’ closes its 1st savings round for February worth SAR 861M

Logo of first Shariah-compliant, government-backed savings product for individuals (Sah)

The government-backed savings product for individuals, Sah, closed its first savings round, on Feb. 6, with SAR 861 million requests, which were fully allocated on Feb. 13 to a total of 35,000 savers.

In a statement, the National Debt Management Center’s (NDMC) said  the return on the government sukuk product in February is 5.64%, while the maturity date will be in February 2025. 

The center added that the second savings round is scheduled to start on March 3, according to the calendar announced by Sah. The subscription window will open through the digital channels of the participating financial institutions.

Sah, launched by the Ministry of Finance and the NDMC, came under the initiatives of the Financial Sector Development Program (one of the programs of Saudi Vision 2030), aimed at raising savings rates among individuals by motivating them to deduct part of their income periodically to be allocated to savings. This is in addition to increasing the supply of savings products, enriching financial culture, and raising awareness of the importance of savings and the related benefits to plan future goals.

According to data compiled by Argaam, Saudi Arabia launched this month Sah as its first government-backed savings product for individuals.

The fee-free, subsidized product is Shariah-compliant, offering attractive returns at low risk. It is easy to subscribe to and has no redemption restrictions.

The subscription dates for 2024 were set, with that for the current month taking place from Feb. 4 to Feb. 6, while the allocation was made on Feb. 13. The redemption period will be from Feb. 18 to Feb. 21, and the refund amounts will be paid on Feb. 25.