In reply to Aanchal Nandwani. The only two reasons that I can think of for this:

You have roles/capabilities restricted for users in the SAS Metadata Server. It is possible to disable "save local files" with this feature, but personally I don't advise it.

Or, your users are accessing SAS Enterprise Guide via a terminal server like Citrix or remote desktop, and don't have access from EG to their local system.

If you can't resolve it, I suggest contacting SAS Technical Support. Also -- as I'm sure you're aware -- SAS 9.3 and EG 5.1 are old versions (released in 2012). Even if you can't update your version of SAS, you can use a later version of SAS Enterprise Guide. SAS Enterprise Guide v8.2 can work with SAS 9.3.