Saudi Arabia opens July ‘Sah’ savings sukuk issuance with 4.60% return

JEDDAH: Saudi Arabia has opened subscriptions for its July “Sah” savings sukuk, offering retail investors a fixed annual return of 4.60 percent through the digital channels of accredited financial institutions.

The subscription period began at 10 a.m. Saudi time on July 6 and will close at 3 p.m. on July 7, according to the National Debt Management Center.

As with previous offerings, the Shariah-compliant sukuk is denominated in Saudi riyals, has a one-year maturity, and pays a fixed return at maturity.

The continued issuance of government sukuk comes as the Kingdom taps debt markets to finance its Vision 2030 economic diversification agenda, including infrastructure projects, tourism development, industrial expansion, and giga-projects.

In a post on X, the National Debt Management Center (NDMC)  stated that the minimum subscription is SR1,000 ($266), while the maximum investment is capped at SR200,000 per individual.

The June issuance was divided into six tranches maturing between 2029 and 2041, while May’s offering comprised five tranches with maturities ranging from 2031 to 2041.

The sukuk is available exclusively to Saudi citizens aged 18 and above through approved platforms, including SNB Capital, Aljazira Capital and Alinma Investment, as well as SAB Invest and Al Rajhi Capital.

Saudi Arabia issues “Sah” sukuk monthly, with returns determined by prevailing market conditions and government funding costs to maintain its appeal to retail investors.

Managed by the Ministry of Finance through the NDMC, the “Sah” program is designed to encourage personal savings and broaden financial inclusion.

Launched under Vision 2030’s Financial Sector Development Program, it aims to raise the Kingdom’s national savings rate to 10 percent by 2030 from around 6 percent currently.

Separately, the Kingdom raised SR10.57 billion through its June domestic sukuk issuance, up 338.6 percent from SR2.42 billion in May, according to the NDMC.

The latest offering also follows Moody’s affirmation of Saudi Arabia’s Aa3 sovereign credit rating with a stable outlook, citing the Kingdom’s economic resilience, continued progress under Vision 2030 and improving institutional effectiveness.