Saudi Gazette report
RIYADH — The Saudi Ministry of Finance and the National Debt Management Center (NDMC) unveiled plans to launch the first savings product intended for individuals and supported by the government. The savings project is titled Sah, which is derived from the first letters of the Arabic phrase Sakookun Hukoomiya or government bonds, will be floated into circulation on Sunday, Feb. 4.
Abdulaziz Al-Furaih, chairman of the Steering Committee at the Ministry of Finance, said that the launch of the Sah product comes within the initiatives of the Financial Sector Development Program, one of the Kingdom’s Vision 2030 programs, and it is aimed at raising savings rates among individuals by motivating them to deduct part of their income periodically and set aside it for saving. This is in addition to increasing the supply of savings products, enriching financial culture and raising awareness of the importance of saving and its benefits for planning future goals.
For his part, CEO of NDMC Hani Al-Madeeni said that these sukuks fall within the program of local sukuks denominated in Saudi riyals, which will be issued on a monthly basis according to the announced calendar of issuances of the Sah product. “This initiative represents an incentive for the private sector to cooperate and participate in developing and launching a number of savings products for specific goals for different categories of individuals, whether through banks, fund managers, financial technology companies, and the like.
The savings product ‘Saha,’ which is compatible with the Islamic Shariah, provides lucrative returns, and will be offered through the digital channels of a number of financial institutions, such as Al-Ahli Financial Company, Al Jazira Financial Markets Company, Alinma Investment Company, Al-Awal Investment Company, and Al-Rajhi Capital Company.
The subscription period for the first version of the Saha product will be during the three day period from Sunday Feb. 4 to Tuesday, Feb. 6. Details of the product and the calendar of its releases can be viewed via the following link: https://ndmc. gov.sa/gov-sukuk/Pages/default.aspx.
It is noteworthy that the National Debt Management Center was established in 2015 to secure Saudi Arabia’s financing needs with best financing costs in the short, medium, and long term under acceptable degree of risk in compliance with the financial policies and to maintain Kingdom’s ability to access different international financial markets at fair pricing.
