RIYADH — The second government sukuk savings round concluded on March 5, drawing over SR959 million in total savings commitments from approximately 37,000 participants.

Offering an attractive return rate of 5.63% for this March round, the sukuk is slated for maturity in March 2025.

The next opportunity for investors interested in government sukuk will commence on April 1, 2024, according to the schedule made available.

Prospective investors are encouraged to explore the program via the digital platforms of participating financial institutions.

Initiated by the Ministry of Finance and the National Debt Management Center, the government sukuk program is a pivotal component of the Financial Sector Development Program, which itself is a part of the broader Saudi Vision 2030 initiatives.

The program's primary objectives are to elevate individual savings rates by motivating citizens to dedicate a segment of their earnings towards regular savings and to diversify savings products while enhancing financial literacy through the promotion of saving's significance and advantages.

Additionally, the savings round of Saudi Arabia’s first Shariah-compliant and government-backed sukuk (Sah) for the month of February concluded with a request volume totaling SR861 million ($229.5 million).

The government sukuk product, which debuted for public subscription on Feb. 4, saw 35,000 Saudis participating.

The Sah offers were fully allocated for Saudi individual applicants by Feb. 13, showcasing the product's attractiveness with a 5.64 percent return for February and a maturity date set for February 2025.

Launched by the Ministry of Finance and the NDMC as part of the Kingdom’s Vision 2030 Financial Sector Development Program, Sah aims to boost savings rates among individuals.

It offers lucrative monthly returns over a one-year period, with yields disbursed at maturity.

Exclusive to Saudi citizens over 18 who have accounts with specified financial institutions, Sah's subscription ranged from SR1,000 to SR200,000 per individual during the program period.

The product emphasizes Shariah compliance, annual returns, easy subscription, no fees for subscribers, and unrestricted redemption, reinforcing its goal to enhance financial planning and elevate savings rates among Saudis.

© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).