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RIYADH: ������Ƶ has announced the opening of the August subscription window for its government-backed savings sukuk, offering an annual return of 4.97 percent, marking an increase from July’s 4.88 percent. 

The “Sah” sukuk is part of the 2025 issuance calendar overseen by the National Debt Management Center under the Ministry of Finance. 

The initiative is aligned with the Financial Sector Development Program, a key pillar of Vision 2030, which aims to elevate the national savings rate from 6 percent to 10 percent by the end of the decade. 

Subscription for the issuance opened at 10 a.m. Saudi time on Aug. 3 and will remain available until 3 p.m. on Aug. 5. The sukuk remains Shariah-compliant, denominated in Saudi riyals, and structured with a one-year maturity, offering fixed returns upon redemption. 

The minimum subscription amount is set at SR1,000 ($266.58), with a maximum cap of SR200,000 per investor. 

Individual investors aged 18 and above can participate through approved digital channels, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital. 

As the Kingdom’s first retail-oriented, government-backed savings instrument, “Sah” is designed to enhance personal financial planning and encourage disciplined savings habits among individuals. 

The product offers several features to make savings accessible, including zero subscription fees, a simplified digital onboarding process, and flexibility in redemption, allowing subscribers to withdraw their funds during specified windows without penalties on the principal amount. 

The sukuk is issued in the form of lease-based structures, ensuring compliance with Shariah principles, and does not qualify as a tradable security on the Saudi financial market. 

The NDMC said the return rate for each issuance is determined based on prevailing market conditions, which may vary month to month. 

“Sah” sukuk are considered low-risk, government-guaranteed instruments, contributing to the Kingdom’s broader strategy of expanding the range of domestic savings products available to individuals. 

The NDMC said the sukuk supports the development of a more robust savings culture while fostering collaboration between public institutions and private financial entities. 

RIYADH: The gross domestic product of Gulf Cooperation Council countries rose 3.3 percent at constant prices to $456.3 billion by the end of 2024, according to a new report.

Non‑oil activities accounted for 70.6 percent of the region’s GDP at constant prices in the final quarter, while oil activities contributed 29.4 percent, Oman News Agency reported, citing the Gulf Statistical Center.

“The contribution of non‑oil activities to the GCC GDP at constant prices reached 70.6 percent by the end of the fourth quarter of 2024,” ONA said.

The GDP growth aligns with broader trends across the Gulf, where nominal GDP reached $587.8 billion, growing 1.5  percent year on year, with non-oil sectors contributing 77.9  percent of the total growth.

Qatar recorded the highest real GDP increase at 4.5  percent, followed by the UAE at 3.6  percent, and ������Ƶ at 2.8  percent, highlighting non-oil expansion as the main driver across the bloc.

Real GDP across the GCC rose 2.4 percent, with non‑oil GDP expanding by 3.7 percent and oil GDP contracting by 0.9 percent due to voluntary OPEC+ production cuts.

Non‑oil sectors such as manufacturing, wholesale and retail trade, construction, finance, real estate, and public administration collectively underpinned this growth, with manufacturing alone contributing 12.5 percent and retail trade nearly 9.9 percent of nominal GDP.

������Ƶ’s economy grew 1.3 percent, with fourth‑quarter real growth of 4.4 percent compared to the same period in 2023. Non‑oil activities grew 4.6 percent, outpacing a 4.5 percent contraction in oil output as government spending increased by 2.6 percent, Reuters reported.

Strategic programs like the National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to non‑oil GDP in 2024, representing 39  percent of the nation’s non‑oil output, with overall non‑oil activities accounting for 55  percent of total GDP.

The GCC’s pivot away from hydrocarbon dependence is supported by major investments in tourism, logistics, manufacturing, and finance, combined with regulatory reforms and infrastructure expansion.

National reforms such as Saudi Vision 2030, the UAE’s Economic Vision, Qatar’s National Vision 2030, and Oman’s Vision 2040 are all central to this shift.