Saudi Arabia started subscription to the first Sah - Shariah-compliant, government-backed savings product for individuals on February 4

On Sunday, February 4, Saudi Arabia began accepting subscriptions to Sah, the country's first government-backed savings programme that complies with Shariah. The subscription period for the inaugural issue will finish at 3 p.m. on Tuesday, February 6. The payment rate for the issue is set at 5.64 percent. Launched as part of the Financial Sector Development Programme, one of the Kingdom's Vision 2030 programmes, the Sah product was created by the Saudi Ministry of Finance and the National Debt Management Centre (NDMC). Sah aims to increase people's savings rates by encouraging them to periodically set aside a portion of their salary for savings.

The product is distributed monthly, in line with the issue schedule, to those who are given profitable returns. The accumulated yields are distributed at the conclusion of the sukuk's term (the maturity date), and the saving period is for one year with a set return. Sah is exclusively available to Saudi nationals who are at least eighteen years old and who have an account with one of the following companies: SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.

The allocation is scheduled for February 13; the redemption period is scheduled for February 18–21; the redemption amounts are scheduled to be paid on February 25. The Sah product was the subject of many inquiries addressed by the NDMC. It was made clear that Sah, which is available as sukuks inside the Kingdom's local sukuk programme in Saudi riyals, is the first subsidised savings product meant for individuals that is compliant with Islamic Shariah.

In addition to expanding the supply of savings products, the issuing of Sah is intended to improve future financial planning and raise people's savings rates by encouraging them to set aside a portion of their income on a regular basis for saves. The National Debt Management Centre and the Ministry of Finance are the government agencies responsible for issuing Sah. Shariah compliance, yearly returns, simple subscription, no subscriber fees, and unrestricted redemption are some of its benefits.

No subscription costs apply, and the Sah bonds will be issued by participating financial institutions. Sah has a nominal value of SR1000. For every problem, the value and return of Sah remain constant. For Sah, the nominal value is the minimum subscription fee of SR1000, and the maximum subscription limit is SR200000 for the total number of issues per individual over the programme time.

On the bonds' one-year calendar maturity date, the yearly profit will be disbursed. As soon as the instrument matures, the subscription amounts and any earnings will be handed to the instrument owner. When subscribing to Sah, the risk ratio will be minimal.

The monthly return % for Sah is contingent upon the state of the market. These bonds cannot be purchased or sold through financial market trading. Additionally, there is no specific application needed to sign up for Sah; instead, partner financial institutions handle the subscription process.

Holders of Sukuk may seek redemption at any time throughout the times allotted in the yearly calendar that Sah publishes; early withdrawal will not result in the accumulation of earnings. The yearly calendar of Sah publications indicates the predefined subscription period. The return for subscription is based on the return % specified for each issue. The NDMC emphasised that the owner of a Sah product is not obliged to pay zakat.