Saudi: Payout rate set at 5.64% as subscription for first individual savings product Sah begins

Saudi: Payout rate set at 5.64% as subscription for first individual savings product Sah begins

RIYADH — Saudi Arabia started subscription to the first Shariah-compliant, government-backed savings product for individuals namely Sah on Sunday Feb. 4. The payout rate for the first issue is determined at 5.64 percent, and the subscription period will end at 3 p.m. on Tuesday, Feb. 6.

The Saudi Ministry of Finance and the National Debt Management Center (NDMC) launched the Sah product, which comes within the initiatives of the Financial Sector Development Program, one of the Kingdom’s Vision 2030 programs. Sah is aimed at raising savings rates among individuals by motivating them to deduct part of their income periodically and set aside it for saving.

The product is allocated for individuals with lucrative returns that are offered on a monthly basis, in accordance with the issuance calendar. The saving period is for one year with a fixed return and the accrued yields are disbursed at the end of the sukuk’s term (maturity date).

Sah is for Saudi citizens only, who are over the age of 18 years, provided the subscriber has an account with either SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest or Al Rajhi Capital.

The allocation is set to take place on Feb. 13, and the redemption period will be on