Residents of Saudi Arabia will be able to increase their savings rates with the announcement of a new product by the Ministry of Finance.
Launched in collaboration with the National Debt Management Center, the “Sah” program is the first savings product intended for individuals and supported by the government.
The product will come in the form of subsidized sukuks within the Kingdom’s local sukuk program, denominated in riyals and are Shariah compatible.
The Chairman of the Steering Committee at the Ministry of Finance, Abdul Aziz bin Saleh Al-Furaih, explained in a release by the organization that the initiative aims to raise saving rates among individuals by motivating them to deduct part of their income periodically and allocate it, according to a release by the body.
In addition to increasing the supply of savings products, it hopes to enrich financial culture and raise awareness of the importance of saving and its benefits for planning future goals.—AN
