All you need to know about Sah bonds - Saudi Arabia’s first savings product for individuals

Dubai: Saudi Arabia has launched its first subscription-based saving product dedicated to individuals, Sah bonds, with yields reaching 5.64 per cent on the first issuance.

The Ministry of Finance and the National Debt Management Center released the first batch of Sah bonds, representing a step forward in encouraging personal financial growth and stability among citizens.

The minimum investment is SAR1,000 (Dh979) per bond, making it accessible to a broader audience and the maximum subscription is capped at SAR200,000 (Dh195,877), catering to more serious investors.

Sah is exclusively available to Saudi nationals, both male and female, who are above the age of 18.

To participate, individuals must hold an account with one of several designated financial institutions, including Al Ahli Financial Company, Al Jazeera Financial Markets Company, Al Inma Investment Company, Saudi First Bank, and Al Rajhi Financial Company.

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.

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

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

There are no subscription fees.

The nominal value of the bond is SAR1,000 (Dh979).

The annual profits for the bonds will be paid on the maturity date, which is the date when the bond period ends.

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

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.