Saudi Arabia develops Sah through Ijara sukuk issuance

The Ministry of Finance and the National Debt Management Center (NDMC) announced the development of Sah, a government-savings sukuk product, through the issuance of Ijara-based sukuk.

The sukuk will continue to be offered through SNB Capital, AlJazira Capital, Alinma Investment, SAB Invest, and Al Rajhi Capital, NDMC said in a statement.

It added that the sukuk will be issued on March 2-4, 2025, adding that next issuances will be offered the same way.

The move is part of the Kingdom’s ongoing efforts to meet individuals' needs and provide innovative savings solutions.

The Sah product is one of the initiatives of the Financial Sector Development Program, under Saudi Arabia's Vision 2030. It also aims to increase individual savings by encouraging citizens to regularly save a portion of their income, in addition to expanding access to savings products while enhancing financial awareness about the importance and benefits of savings.

In February 2024, the Ministry of Finance and NDMC launched Sah as the first Shariah-compliant, government-backed savings product for individuals, according to data available with Argaam.

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. The accrued yields are disbursed at the end of the sukuk’s term (maturity date).