Arab News
Arab news,
Mon, Oct 06, 2025 | Rabi al-Thani 14, 1447
Saudi Arabia opens October ‘Sah’ Sukuk offering 4.83% return
Saudi Arabia:
Saudi Arabia has opened subscriptions for its
October issuance of the government-backed “Sah” savings sukuk, offering
investors an annual return of 4.83 percent, slightly lower than the 4.88 percent
offered in September.
The subscription window runs from 10 a.m. on Oct.
5 to 3 p.m. on Oct. 7, according to the National Debt Management Center.
Allocation is scheduled for Oct. 14, while redemption will take place between
Oct. 19 and 21, with payments disbursed on Oct. 26.
The sukuk initiative is part of the 2025 issuance
calendar managed by the Ministry of Finance’s National Debt Management Center
and is designed to strengthen the domestic savings market and broaden financial
inclusion.
Launched under the Financial Sector Development
Program — a core element of Vision 2030 — Sah aims to raise the national savings
rate to 10 percent by 2030, up from about 6 percent currently. The initiative
reflects the Kingdom’s ongoing efforts to provide Shariah-compliant investment
opportunities for individual investors.
With a minimum subscription of SR1,000 ($266) and
a maximum of SR200,000 per individual, the offering forms part of the NDMC’s
strategy to expand the domestic sukuk program, enhance financial inclusion, and
diversify investment opportunities for the public.
The sukuk, denominated in Saudi riyals, carries a
one-year maturity and offers fixed returns paid at redemption. Subscriptions are
available exclusively to Saudi nationals aged 18 and above through approved
investment platforms, including SNB Capital, Aljazira Capital, Alinma
Investment, SAB Invest, and Al-Rajhi Capital.
In mid-September, the NDMC announced the
completion of investor subscriptions for that month’s issuance, with a total
allocation of SR8.036 billion.
According to a statement from the center at that
time, the issuance was divided into five tranches: the first tranche amounted to
SR1.240 billion maturing in 2027. The second tranche totaled SR1.053 billion
with a maturity in 2029, while the third amounted to SR795 million and will
mature in 2032.
The fourth tranche totaled SR1.271 billion and
will mature in 2036, and the fifth tranche amounted to SR3.677 billion with
maturity in 2039.
Unlike conventional bonds, the sukuk’s returns are
structured to comply with Shariah principles. Designed as a secure, low-risk
savings instrument, it carries no fees and offers easy redemption, with returns
aligned to prevailing market benchmarks.