What Currency Does Saudi Arabia Use in 2026?

The Saudi Riyal Explained

The Saudi Arabia currency name is the Saudi Riyal, officially abbreviated as SAR in international markets. The Saudi Arabia currency symbol is ر.س in Arabic or simply SR in Latin script.

The Riyal serves as legal tender throughout the kingdom and is widely accepted in neighboring Gulf states. Its stability comes from being pegged to the US dollar, which means its value moves in tandem with American currency against other global currencies.

One Riyal equals 100 halalas, though halala coins are rarely used in everyday transactions today. The currency is issued and regulated by the Saudi Arabian Monetary Authority (SAMA), which was established in 1952.

History of Saudi Currency

The Riyal's history traces back to before Saudi Arabia's unification. In the early 20th century, the region used various foreign currencies including Ottoman coins, British gold and Maria Theresa thalers.

When the Kingdom of Hejaz existed independently, it issued the Hejazi Riyal based on the Ottoman 20 kuruş coin. After King Abdulaziz unified the kingdom in 1932, he established a bimetallic monetary system using both silver Riyals and British gold sovereigns.

The modern Saudi Riyal emerged in 1935 with new specifications matching the Indian rupee, which was common in trade at that time. These coins were lighter and smaller than previous versions but maintained a high silver content of .916 fineness.

In 1952, SAMA (Saudi Arabia Central Bank) was created to centralize currency issuance and management. The following year, they introduced Hajj Pilgrim Receipts for 10 Riyals, designed for pilgrims exchanging foreign currency.

These receipts gained widespread acceptance and evolved into regular banknotes by 1961. The currency underwent decimalization in 1963, introducing the halala as a subdivision and modernizing the monetary system.

In 1986, the Riyal was officially pegged to the US dollar at the current rate of 3.75:1, a decision driven by economic stability concerns and close ties between Saudi Arabia and the United States.

Currency Denominations

Understanding saudi arabia currency denominations helps when handling cash transactions in the kingdom.

Banknotes are issued in eight denominations:

• 1 Riyal (rarely seen)
• 5 Riyals
• 10 Riyals
• 20 Riyals
• 50 Riyals
• 100 Riyals
• 200 Riyals (commemorative)
• 500 Riyals

The most commonly circulated notes are 50, 100, and 500 Riyals. Each denomination features different colors and designs incorporating Islamic art, significant landmarks, and portraits of Saudi kings.

The current series displays King Salman on notes from 5 to 100 Riyals, while the 500 Riyal note features King Abdulaziz Al Saud, the kingdom's founder.

Coins come in smaller denominations:

• 1 halala
• 5 halalas
• 10 halalas
• 25 halalas
• 50 halalas
• 1 Riyal
• 2 Riyals

In practice, coins below 25 halalas are rarely used.

Exchange Rates and Conversion

The Saudi Arabia currency rate remains fixed at 3.75 Riyals per US dollar. As we saw before, this has been maintained since 1986, providing predictable exchange rates for international trade and tourism.

Saudi Arabia currency to USD conversion is straightforward: divide the Riyal amount by 3.75 to get dollars, or multiply dollars by 3.75 to get Riyals. For example, 100 USD equals 375 SAR, while 1,000 SAR equals approximately 266.67 USD.

For those wondering about Saudi Arabia currency to naira (Nigerian currency), the exchange rate fluctuates based on both the naira's value against the dollar and the Riyal's dollar peg.

As of late 2024, 1 SAR equals approximately 400-450 Nigerian naira, though this rate varies with market conditions.

When exchanging currency, banks and official exchange offices offer the best rates, while hotels and airports typically charge higher commissions.

Most major Saudi banks provide currency exchange services, and ATMs are widely available throughout the kingdom for withdrawing Riyals directly.

The Saudi Arabia currency code is SAR in the ISO 4217 standard, the international system for currency identification.

Using Currency in Saudi Arabia

Saudi Arabia has rapidly modernized its payment infrastructure, making both cash and digital payments widely accessible.

Cash transactions remain common, especially in traditional markets (souqs) and smaller establishments. It's wise to carry smaller denominations like 50 and 100 Riyal notes, as taxi drivers and small shops may struggle to break 500 Riyal notes.

Digital payments have expanded significantly. Credit and debit cards are accepted in most hotels, restaurants, shopping malls, and major retailers. Visa and Mastercard are the most widely accepted networks.

Mobile payment systems like Apple Pay, Samsung Pay, and local solutions such as STC Pay and Mada have gained traction. The majority of the Saudis now prefer contactless payments for everyday purchases.

ATMs are abundant in cities and towns, usually offering English language options alongside Arabic. International cards work at most machines, though your bank may charge foreign transaction fees.

The Saudi Economy and Currency Stability

Saudi Arabia's economy heavily influences its currency's strength. As the world's largest oil exporter, the kingdom controls approximately 25% of global oil reserves. Oil accounts for roughly 42% of GDP and 90% of export revenues.

The government has worked to diversify the economy through Vision 2030, a comprehensive reform program reducing oil dependence and developing sectors like tourism, entertainment, technology, and renewable energy.

SAMA maintains substantial foreign exchange reserves exceeding $400 billion, providing a strong buffer to defend the currency peg and maintain financial stability. These reserves rank among the world's largest, demonstrating Saudi Arabia's economic resilience.

The Tadawul stock exchange in Riyadh is the largest in the Middle East and North Africa, further cementing Saudi Arabia's position as a regional financial hub.

Trading the Saudi Riyal

The Saudi Riyal offers limited trading opportunities due to its fixed peg to the US dollar at 3.75:1. This peg eliminates exchange rate volatility, making SAR/USD pairs unsuitable for forex speculation.

However, cross-currency pairs like SAR/EUR or SAR/GBP do fluctuate based on dollar movements. Most forex brokers offer riyal trading with spreads typically ranging from 5-15 pips.

The currency trades 24/5 during forex market hours, though liquidity is lower compared to major currencies like EUR or JPY.

Conclusion

The Saudi Riyal serves as a stable and reliable currency backed by one of the world's strongest economies. Its peg to the US dollar provides predictability for travelers, businesses, and investors engaging with Saudi Arabia.

Whether you're visiting for business, tourism, or religious pilgrimage, understanding the Riyal's denominations, exchange procedures, and usage practices ensures smooth financial transactions throughout your stay.