What Currency Is Used in Saudi Arabia?

What currency is used in Saudi Arabia?

If you're travelling to Riyadh, conducting business with Saudi firms, or shopping online from Saudi retailers, it's important to understand the country’s currency. This guide is written for travellers, international investors, importers, and global payment providers. We’ll explain what currency is used in Saudi Arabia, how it works, and how to manage it efficiently while avoiding common mistakes.

Saudi Arabia’s official currency: the Saudi Riyal (SAR)

The official currency of Saudi Arabia is the Saudi Riyal, abbreviated as SAR and commonly symbolised as ر.س in Arabic or SR in English-language contexts.

• Currency code: SAR

• Symbol: SR or ر.س

• Subunit: 1 riyal = 100 halalas

• Issued by: Saudi Central Bank (SAMA – Saudi Arabian Monetary Authority)

The riyal has been Saudi Arabia’s official currency since the 1920s and is the only legal tender accepted for all goods, services, and official transactions in the kingdom.

Coins and banknotes in circulation

• Coins: 5, 10, 25, 50 halalas; 1 and 2 riyals

• Banknotes: SAR 1, 5, 10, 50, 100, and 500

Banknotes typically feature past and present Saudi monarchs, along with important landmarks such as mosques and national symbols. Currency is printed in both Arabic and English for ease of use.

Where the riyal is used

The Saudi riyal is the only legal currency used throughout Saudi Arabia, including major cities such as Riyadh, Jeddah, Dammam, and Mecca. All purchases, whether in luxury malls, souks (markets), or petrol stations, are made in riyals.

Foreign currencies such as US dollars, euros, or pounds are not accepted in local shops or services, although some large hotels and international businesses may quote prices in USD for clarity.

How the riyal works

The Saudi riyal is a pegged currency, meaning its exchange rate is fixed to the US dollar. Since 1986, the rate has remained stable at:

• 1 USD = 3.75 SAR

This fixed peg is maintained by the Saudi Central Bank and provides currency stability—particularly important given Saudi Arabia’s reliance on oil exports and dollar-denominated trade.

Benefits and considerations of using SAR

Advantages:

• Stable exchange rate due to its peg to the US dollar

• Trusted by regional and global investors

• Accepted countrywide, from major cities to rural villages

• Dual-language banknotes (Arabic and English) improve usability for visitors

Considerations:

• Foreign currencies are not accepted in day-to-day transactions

• Cash may be preferred in smaller shops, although cards are widely accepted

• International withdrawal or exchange fees may apply when converting other currencies into SAR

Common misconceptions

A common misconception is that US dollars are accepted in Saudi Arabia due to the oil trade. In reality, all local transactions must be made in riyals, even if prices are occasionally quoted in dollars for international reference.

Another myth is that Saudi Arabia is a cash-only society. While cash is still widely used, contactless card payments, Apple Pay, and Mada debit cards are now standard in urban areas and across national retailers.

Tips for managing your money in Saudi Arabia

• Use local ATMs for cash withdrawals—machines are plentiful and reliable in cities

• Exchange money at official bureaus or banks for better rates than airports or hotels

• Use travel cards with no foreign transaction fees when possible

• Always pay in SAR when using a card to avoid poor dynamic currency conversion rates

• Carry small notes and coins for local shops, taxis, and tipping

FAQs

Can I use US dollars or other currencies in Saudi Arabia?
No. Only the Saudi Riyal (SAR) is accepted for in-person payments.

Is the riyal stable?
Yes. The riyal is pegged to the US dollar at a fixed rate of 3.75 SAR per USD, providing long-term stability.

Are credit cards widely accepted?
Yes. Visa, Mastercard, and Mada cards are widely accepted across the country.

Is tipping expected in Saudi Arabia?
Tipping is not mandatory but is appreciated. Rounding up or offering 5–10% in restaurants or for hotel services is customary.

Real-life example

A traveller from the UK visits Riyadh for business. They bring £300 in cash but exchange it at a bank for SAR at a favourable rate. They withdraw additional riyals using a fee-free travel card and use contactless payments for most purchases. In smaller cafés and markets, they use cash. All prices are listed in SAR, and by managing currency exchange carefully, they avoid unnecessary charges.