What Is the Currency of Saudi Arabia?

What Is the Currency of Saudi Arabia?

The official currency of Saudi Arabia is the Saudi Riyal (SAR). It’s subdivided into 100 halalas (‎هللة‎) and issued by the Saudi Central Bank (SAMA, formerly SAMA).

• Currency name: Saudi Riyal (SAR)
• ISO code: SAR
• Symbol: ر.س (Arabic) or “SAR” in international markets
• Subunit: 1 SAR = 100 halalas
• Coins: 1, 5, 10, 25, 50 halalas, and 1 or 2 riyal
• Banknotes: Frequently used – 5, 10, 50, 100, 500 SAR; rarely used – 1, 20, 200 SAR

How Does Saudi Arabia Money Look Like?

The modern sixth issue of Saudi Riyal notes, launched in 2016, reflects Saudi Arabia’s culture and leadership:

• King Salman appears on the 5, 10, 50, and 100 SAR notes
• King Abdulaziz is featured on the 500 SAR
• National landmarks like the Kaaba, Prophet’s Mosque, and Shaybah oil field are prominent
• Polymer 5 SAR note released in 2020
• 200 SAR note commemorated Vision 2030 in 2021

Security features include tactile markings, metallic threads, and color-shifting ink designed to prevent counterfeiting and support visually impaired users.

SAR vs USD Forex Market Analysis

The Saudi Riyal is pegged to the U.S. Dollar at a fixed rate of 3.75 SAR per 1 USD.

Timeline of the Peg:

• Initial peg: Established in June 1986
• Formal reaffirmation: January 2003 by SAMA for long-term economic stability

Key reasons for the USD peg:

• Oil revenue stability: Oil is priced globally in USD
• Inflation control: Helps anchor domestic prices
• Monetary policy: Aligns with U.S. Fed rate moves
• Crisis resilience: Peg was briefly tested during the 2007–2008 crisis but defended by SAMA

Top SAR Currency Pairs & Popular Currency Pairs

While SAR/USD is the most traded, these SAR-based forex pairs are also tracked:

• SAR/EUR
• SAR/GBP
• SAR/JPY
• SAR/AED
• SAR/CNY

However, due to lower liquidity, spreads are typically wider than major currency pairs like EUR/USD, USD/JPY, or GBP/USD. SAR pairs appeal mostly to traders in the Gulf or institutions exposed to Saudi assets.

SAR to Dollar Forecast

The USD/SAR pair is expected to stay flat near 3.75, barring extraordinary macro shifts.

Forecast drivers:

• U.S. Fed rate policy: Directly affects SAR interest rates due to peg
• Oil prices: Saudi’s fiscal health depends on crude revenues
• SAMA reserves: Currently robust, allowing effective defense of the peg
• Geopolitical trends: While Saudi Arabia explores trade in other currencies, no official peg change has been announced

Barring a geopolitical shock or major de-dollarisation move, the USD/SAR pair will remain stable through 2025.

Conclusion

The Saudi Riyal (SAR) offers one of the most stable currency environments in the forex market, thanks to its long-standing peg to the U.S. dollar at 3.75. With modern, secure banknotes, minimal volatility, and a predictable interest rate environment tied to the U.S. Federal Reserve, SAR is ideal for traders seeking risk-managed exposure rather than speculation.

At Ultima Markets, we help traders take advantage of stable currencies like SAR in strategic ways whether through carry trade setups, hedging oil-linked assets, or monitoring macroeconomic trends like U.S. rate policy and global de-dollarisation.