Saudi Arabia is working to reach its goal of increasing savings rates from 6% to the global average of 10%. The Saudi government is intensifying its efforts to help individuals raise the savings rate in the country, by encouraging the private sector to issue new sukuks, after recently offering the first government sukuk (Sahah), provided that other government products will be issued to save money and secure the future needs of individuals.
The Financial Sector Development Programme, one of the “Vision 2030” programs, aims to raise savings rates among individuals by motivating them to periodically deduct a portion of their income and allocate it to savings, in addition to increasing the supply of savings products, enriching financial culture and raising awareness of the importance of saving and its benefits to plan future goals. .
According to a previous statement by the Minister of Finance, Mohammed Al-Jadaan, the government sukuks (Sahah) come as part of several initiatives that aim to increase the savings rate, which is one of the pillars of the financial sector development program affiliated with “Vision 2030”, indicating that work is being done with the financial technology sector to issue other products. Helps save. The Saudi government is working to reach its goal of increasing savings rates from 6 percent to the global average of 10 percent.
Capital protection For their part, new financial technology companies are competing to offer more innovative and less complex savings products, including enabling an individual to open a savings wallet with an amount starting from one thousand riyals ($266), with a return of up to 5 percent annually.
The CEO of the “Returns” platform, Adel Al-Ateeq, told Asharq Al-Awsat that financial technology companies are currently seeking to offer new savings products with guaranteed returns, adding that saving has become necessary to preserve capital and protect it from the impact of inflation and the rise in prices that occur. Over time, preferably through products with guaranteed returns such as “Murabaha returns,” rather than keeping the cash stagnant for a long period in the bank account.
Al-Ateq stated that financial technology companies in Saudi Arabia are currently working on developing several savings products that differ from others in ease of use and with a short investment period. He explained that “Awaed” Company intends to offer savings products during the coming period, indicating that the period for earning returns for beneficiaries of these products begins from the first three months, and they will be compatible with Islamic Sharia in several local banks.
Emergency cases Economist Ahmed Al-Shehri pointed out to Asharq Al-Awsat the importance of saving for the individual and the family, for several reasons, such as securing the financial future, providing better education opportunities for children, buying a house, or retirement, in addition to dealing with financial emergencies, and striving for financial independence. Through saving.
According to Al Shehri, saving allows individuals and families to achieve a degree of financial independence, which enables them to achieve their financial goals without the need to incur debt or rely on external sources. It also contributes to alleviating stress and anxiety regarding financial matters, and gives the individual and the family a feeling of security and confidence in the face of financial difficulties that may arise.
Al-Shehri added that Saudi Arabia is witnessing a major shift in the savings culture in recent years. The government has begun to promote financial awareness and savings through awareness campaigns, educational programs, and launching savings programs for individuals. He added that the saving culture can be enhanced by including education about money and saving in school curricula, providing educational programs for youth and adults, and increasing financial culture by focusing on the importance of appropriate financial investment, and introducing the options available to them to achieve a financial return in the long term.
Al-Shehri recommended setting a budget in which income and various expenses are determined, including necessary expenses, investment, and entertainment, giving the highest priority to basic necessities and needs, in addition to specifying a certain percentage of income for saving. You should also avoid debts and excessive reliance on credit cards, and be careful not to accumulate debts and pay them off in a timely manner.