Individuals start subscription to new ‘Sah’ product today; return set at 5.64%

04/02/2024 Argaam
Logo offirst Shariah-compliant, government-backed savings product for individuals (Sah)

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


Subscription to the Ministry of Finance and the National Debt Management Center’s (NDMC) first Shariah-compliant, government-backed savings product for individuals (Sah), starts today Feb. 4.

 

The payout rate for the first issue is determined at 5.64%. The allocation is set to take place on Feb. 13, and the redemption period will be on Feb. 18-21. Redemption amounts will be paid on Feb. 25.

 

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 fees-free product is characterized as 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, 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 (at 10:00 am)

End of subscription to the first issue

 

Feb. 6, 2024 (at 3:00 pm)

Target category

 

Saudi individuals 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

 

5.64%

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

Does the product bear Zakat on behalf of subscribers

 

No

 

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