Subscription to September issue of Sah to start tomorrow; return set at 5.31%

Subscription to the government-backed savings product for individuals (Sah) will start tomorrow, Sept. 1. Shariah-compliant securities are issued by the Saudi Ministry of Finance and arranged by the National Debt Management Center (NDMC).

The return is set at 5.31%. The allocation is set to take place on Sept. 10. The redemption period will run from Sept. 15-18. Redemption amounts will be paid on Sept. 22.

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.