Saudi Arabia Opens May ‘Sah’ Sukuk Subscription With Higher 4.56% Return

Saudi Arabia has launched subscriptions for its May issuance of the government-backed “Sah” savings sukuk, offering an annual return of 4.56%, slightly higher than the 4.50% return available in April.

The subscription window opened at 10 a.m. on May 3 and will remain open until 3 p.m. on May 5, according to the National Debt Management Center (NDMC). The monthly issuance is part of Saudi Arabia’s broader strategy to encourage savings among citizens and deepen participation in the Kingdom’s financial markets.

“Sah” was introduced under the Financial Sector Development Program, one of the central pillars of Saudi Vision 2030. The initiative is designed to raise Saudi Arabia’s national savings rate from around 6% currently to 10% by the end of the decade.

The sukuk is available exclusively to Saudi nationals aged 18 and above. Investors can subscribe through approved financial institutions, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest and Al Rajhi Capital.

NDMC said the minimum investment amount is set at SR1,000 ($266), while individual subscriptions are capped at SR200,000. The sukuk has a one-year maturity period, with fixed returns paid upon redemption.

As a Shariah-compliant financial instrument, sukuk provides investors with partial ownership in underlying assets rather than representing a debt obligation, distinguishing it from conventional bonds. The “Sah” product has been positioned as a low-risk savings option that carries no subscription fees, offers flexible redemption terms and delivers returns aligned with market conditions.

The latest issuance comes amid continued confidence in Saudi Arabia’s economic and fiscal outlook. In January, Fitch Ratings reaffirmed the Kingdom’s sovereign credit rating at A+ with a stable outlook, citing strong debt metrics and substantial sovereign financial reserves.

Saudi Arabia has also maintained a steady pace in its broader debt issuance programme. In April, NDMC raised SR16.94 billion through its riyal-denominated sukuk programme.

That issuance was divided into five tranches. The first, valued at SR563 million, will mature in 2031. A second tranche worth SR3.03 billion is due in 2033. The third, valued at SR5.66 billion, will mature in 2036.

A fourth tranche worth SR2 billion is scheduled to mature in 2039, while the fifth and largest portion, valued at SR5.68 billion, will mature in 2041.

The continued expansion of the “Sah” programme reflects Saudi Arabia’s efforts to promote financial literacy, broaden retail investor participation and strengthen household savings. It also supports the Kingdom’s wider ambition to build a more diversified and resilient financial system as part of its long-term economic transformation agenda.