Saudi Arabia to launch first savings product for individuals, subscription starts on Feb. 4

Logo of the savings product - Government Sukuk

The Ministry of Finance and the National Debt Management Center (NDMC) plan to launch the first savings product for individuals and supported by the government under the name "Sah".

The new Sharia-compliant savings product will provide lucrative returns, and will be offered through digital channels by a number of financial institutions, namely SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital, NDMC said in a statement.

The subscription period for the first issue of the “Sah” product will run from Feb. 4-6, 2024.

Abdulaziz Al-Furaih, Head of the Steering Committee at the Ministry of Finance, said that the launch of the “Sah” product comes within the initiatives of the Financial Sector Development Program (one of Vision 2030 programs) aimed at raising savings rates among individuals by motivating them to invest a portion of their income periodically and allocate it to savings.

Additionally, the move will increase the supply of savings products, enriching financial culture and raising awareness of the importance of saving and its benefits for planning future goals.

NDMC's CEO Hani Al-Madani said that the new sukuks fall within the program of local SAR-denominated sukuks, which will be issued monthly according to the announced calendar of issuances for the “Sah” product.

He indicated that this initiative represents an incentive for the private sector to cooperate and participate in developing and launching several savings products for specific goals for different categories of individuals, whether through banks, fund managers or fintech companies.