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RIYADH: Saudi Arabia has concluded its first government sukuk savings round for February, with a total volume of requests reaching SR861 million ($229.5 million), fully allocated to 35,000 applicants.

The National Debt Management Center said in a statement that this surge in interest underscores the growing popularity of sukuk investments among individuals seeking secure and rewarding avenues for their savings.

Notably, the government sukuk product, also known as Sah, offers an attractive return of 5.64 percent for February, with a maturity date set for February 2025. This promising result, coupled with the government’s backing, has positioned the sukuk as an appealing option for investors looking to grow their wealth steadily.

Looking ahead, the second savings round is slated for March 3, as per the official calendar. 

Participants can access the savings window through the digital channels provided by their respective financial institutions, reflecting the government’s commitment to embracing digitization.

Initiated by the Ministry of Finance and the National Debt Management Center, the government sukuk product is part of the Financial Sector Development Program, a key component of the ambitious Saudi Vision 2030 agenda.

This initiative aims to foster a culture of saving among individuals by encouraging regular contributions from their income. 

Furthermore, it seeks to diversify the range of available savings products, enhance financial literacy, and underscore the importance of savings in achieving future financial goals. 

The government sukuk product promotes prudent financial habits and offers attractive investment opportunities, embodying Saudi Arabia’s commitment to economic growth and prosperity for its citizens.

According to the NDMC, the purpose of issuing Sah is to enhance financial planning for the future, increase individual savings rates by encouraging periodic deductions from their income for savings, and expand the range of savings products available.

It is also Shariah-compliant, offers annual returns, is easy to subscribe to, has no fees for participants, and has no restrictions on redemption.

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