Saudi Arabia Launches ‘Sah Bonds’, A Subscription-Based Saving Product

Saudi Arabia has introduced Sah bonds, its inaugural subscription-based savings product, aiming to foster personal financial growth among citizens. The first issuance offers a competitive 5.64% yield, with a minimum investment of SAR 1,000 (Dh979) per bond, making it accessible to a broader audience, and a maximum subscription limit of SAR 200,000 (Dh195,877) for serious investors. Exclusive to Saudi nationals aged 18 and above, Sah requires individuals to hold accounts with designated financial institutions like Al Ahli Financial Company and Al Rajhi Financial Company.

The initiative aims to enhance financial planning, boost individual savings by encouraging periodic income deductions, and diversify available savings products. Shariah-compliant Sah bonds provide annual returns, easy subscription, no participant fees, and no redemption restrictions. Financial institutions like SNB Capital and AlJazira Capital offer the subscription service.

The nominal value of each bond is SAR 1,000 (Dh979), and annual profits are distributed on the maturity date. Notably, Sah bonds are not tradable in the financial market, offering a secure, long-term savings avenue. Bondholders have the flexibility to request redemption during specified periods without forfeiting accumulated profits. This subscription-based initiative represents a significant step toward promoting financial stability and investment among Saudi citizens.