Details of new Shariah-compliant savings product for individuals

01/02/2024 Argaam
Logo of the savings product -Government Sukuk

Logo of the savings product - Government Sukuk


The Ministry of Finance and the National Debt Management Center (NDMC) announced the launch of the first Shariah-compliant, government-backed savings product for individuals, named "Sah". 

 

The product is allocated for individuals with lucrative returns that are offered on a monthly basis according to 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).

 

The fees-free product is characterized by being compatible with Shariah standards, government-backed, low-risk, easy to subscribe, besides offering lucrative returns with no restrictions on redemption.

 

It aims to enable individuals to make better financial planning for the future, increase the percentage of individuals who save periodically, provide a safe savings method, increase the supply of savings products and strengthen the culture of savings.

 

 New Product Details

Issue type

 

Sah, which is the first Shariah-compliant savings product intended for individuals in the form of sukuks within the Kingdom’s local SAR-denominated sukuk program.

Start of subscription to the first issue

 

Feb. 4, 2024

End of subscription to the first issue

 

Feb. 6, 2024

Target category

 

Saudi male and female individuals only are over the age of 18

Minimum subscription limit

 

SAR 1,000, which is equivalent to the value of one sukuk

Maximum subscription limit

 

SAR 200,000 for the total number of issues per individual during the program period

Yield payment date

 

The annual yield on the sukuk will be paid on the maturity date

Sukuk par value

 

SAR 1,000

Sukuk yield

 

Fixed yield for each issue

Maturity date

 

Calendar year

Redemption request

 

Sukuk holders can request redemption during the periods specified according to the annual calendar published for “Sah”, and the accumulated profit will not be accrued upon early withdrawal

Financial institutions that provide subscription service

 

 

SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital

Return rate

 

It depends on market conditions from month to month

 

The product has been allocated to Saudi male and female individuals only who are over the age of 18 years, provided that the subscriber has an account with either SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest or Al Rajhi Capital.

 

Subscription dates for 2024 have been set, with that for the current month running between Feb. 4-6. Meanwhile, the allocation will take place on Feb. 13 and the redemption period will be from Feb. 18-21. The redemption amounts will be paid on Feb. 25.

 

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

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