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Saudi Arabia’s first dedicated savings bond for individuals – ‘Sah’ – offering 5.64% yield

RIYADH: Saudi Arabia has launched the subscription to its first savings product dedicated to individuals – Sah –  with a yield reaching 5.64 percent on the first issuance.

Registration for the Islamic-compliant bond, issued by the Ministry of Finance, started on Sunday, Feb. 4, at 10 a.m. and will end on Tuesday, Feb. 6, at 3 p.m.

The Sah bonds are organized by the National Debt Management Center and designed as a savings product for individuals, offering attractive returns. 

The bonds are offered monthly according to the issuance schedule, with a one-year savings period, fixed returns, and profits disbursed at the end of the bond’s maturity date.

Future returns will be determined based on market conditions from month to month.

The NDMC responded to the most common questions about the product as follows:

What is “Sah”?

Sah is the first savings product specifically designed for individuals and compliant with Islamic Shariah in the form of bonds under the Kingdom’s local bonds program in Saudi riyals.

What is the purpose of issuing Sah?

The goal 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.

Who is responsible for issuing Sah?

It is issued by the government of the Kingdom through the Ministry of Finance and the National Debt Management Center.

What are the features of Sah?

It is Shariah-compliant, offers annual returns, easy subscription, no fees for participants, and no restrictions on redemption.

Is Sah compliant with Islamic Shariah?

Yes, it is.

How are Sah bonds offered?

Through participating financial institutions.

Which financial institutions provide the subscription service for Sah?

SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital.

Are there any fees for subscribing to Sah?

There are no fees for participants.

What is the value of the bond?

The nominal value of the bond is SR1,000 ($266.66).

Is the bond value fixed or variable?

It is fixed.

Is the yield fixed or variable?

The yield is fixed for each issuance.

What is the minimum subscription amount for Sah?

The minimum is SR1,000, equivalent to the value of one bond.

What is the maximum subscription amount for Sah?

SR200,000 for the total issuances per individual during the program period.

When are Sah profits distributed?

The annual profits for the bonds will be paid on the maturity date.

What does the “maturity date” mean?

It is the date when the bond period ends, and the maturity date is in the Gregorian calendar.

How are the bond value and returns paid after maturity?

Subscription amounts with profits – if any – will be transferred to the bondholder directly after the maturity date.

What is the risk percentage when subscribing to Sah?

Low risk.

Who is the targeted qualified subscriber?

Saudi individuals aged 18 and above.

What is the yield percentage for Sah?

Returns depend on market conditions from month to month.

Can Sah bonds be bought and sold through trading in the financial market?

No, the bonds will be registered but not traded in the market.

Is there a dedicated application for subscribing to Sah?

There is no specific application for subscribing to Sah; subscriptions are made through participating financial institutions.

Why is the yield not increased?

The yield for each issuance is determined based on market conditions from month to month.

Can I withdraw my funds whenever I want?

Yes, bondholders can request redemption during the specified periods as per the published annual calendar for Sah, and accumulated profits will not be forfeited upon early withdrawal.

Can I subscribe with more than SR1,000?


I have savings exceeding SR1,000; how can I invest them?

You can allocate a suitable amount each month for subscription to Sah.

If I subscribe with SR10,000, what will be the return?

The return depends on the specified yield for each issuance.

Why is the product named Sah?

It is derived from Government Bonds.

Can I subscribe at any time?

There is a predefined subscription period, as outlined in the annual calendar for Sah.

Does the Sah product cover zakat for savers?

No, the Sah product does not cover zakat.

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