Individuals start subscription to new ‘Sah’ product today

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 each issue is determined based on market conditions from month to month. 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
End of subscription to the first issue		Feb. 6, 2024
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		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
Does the product bear Zakat on behalf of subscribers		No