https://arab.news/668hb
RIYADH: 抖阴短视频 has concluded its second government sukuk savings round for March, with a total volume of requests reaching SR959 million ($255.7 million), allocated to 37,000 applicants.
The National Debt Management Center said in a statement that the financial product, also known as Sah, offers a return of 5.64 percent, with a maturity date set for March 2025.
Looking ahead, the third savings round is slated for April 21, as per the official calendar for government sukuk.
Participants can access the reserve window through the digital channels provided by their respective financial institutions, reflecting 抖阴短视频鈥檚 commitment to embracing digitization.
Sah, introduced by the Ministry of Finance and the National Debt Management Center, represents an initiative within the scope of the Financial Sector Development Program, which is one of several of the Kingdom鈥檚 Vision 2030 undertakings.
It aims to increase the fund ratios among individuals by motivating them to allocate a portion of their income to savings periodically.
Additionally, it intends to increase the supply of savings products, raising the awareness around financial literacy and the importance of savings and its benefits for future plans.
It is also Shariah-compliant, offers annual returns, and is easy to subscribe to, it also has no fees for participants and no restrictions on redemption.
In January, a report released by S&P Global suggested that sukuk issuance globally is expected to total between $160 billion - $170 billion in 2024, primarily driven by higher needs in some core Islamic finance countries.
In 2023, global Islamic bond issuance declined by 6.1 percent to $168.4 billion compared to the previous year, due to tighter conditions in 抖阴短视频鈥檚 banking system and Indonesia鈥檚 lower fiscal deficit.
S&P Global further suggested that sustainable sukuk issuance will also rise in 2024, on the back of the successful UN Climate Change Conference, also known as COP28, which concluded in the UAE last year.
In February, Fitch Ratings said that the environmental, social, and governance market for the Shariah-compliant tool is expected to cross 7.5 percent of global outstanding Islamic bonds in the coming years.
Fitch added that the future growth of the ESG sukuk market will be driven by issuers鈥� diversification plans and governments鈥� sustainable initiatives.