TheSaudi riyal (Arabic: ريال سعوديriyāl suʿūdiyy) is thecurrency ofSaudi Arabia. It is officially abbreviated asSAR (Saudi Arabian Riyal), thoughSR (Saudi Riyal) is also commonly used, It is subdivided into 100 halalas (Arabic: هللةHalalah).
The riyal has been the currency of Saudi Arabia since the country came into being and was the currency ofHejaz before Saudi Arabia was created, one of the primary currencies in the Mediterranean region during theOttoman era. TheHejaz riyal was based on but not equivalent to the Ottoman 20kuruş coin and was consequently divided into 20 qirsh. However, although the Hejaz riyal was the same weight as the Ottoman 20 kuruş, it was minted in .917fineness, compared to .830 fineness for the Ottoman coin. Thus, because the first Saudi riyal had the same specifications as the Hejaz riyal and circulated alongside Ottoman coins, it came to be worth 22 Ottoman kuruş and was consequently subdivided into 22 ghirsh when coins denominated in qirsh were issued from 1925. The system remained even though the riyal was subsequently debased to a coin equivalent, in silver content, to theIndian rupee in 1935.
In 1960, the system was changed to 20 qirsh to a riyal, which was followed in 1963 by the introduction of thehalala, one hundredth of a riyal. Some Saudi coins still bear denominations in qirsh, but it is no longer commonly used.
Regarding the symbol, the Saudi Central Bank clarified that the design of the Saudi riyal symbol was inspired by Arabic calligraphy and consists solely of the Arabic letters of the word "Riyal," without any additional elements.[4] Additionally, the Saudi Central Bank has published the precise standards and proportions for designing the riyal symbol and guidelines for its usage.[5] The symbol was added toUnicode asU+20C1SAUDI RIYAL SIGN with the release of Unicode version 17.0 in September 2025,[6] but will take some time to become included in majorcomputer fonts (a.notdef symbol will be displayed until then).
Historical exchange rate arrangements of Saudi Arabian currency since 1936
Date period
Arrangement
Remarks
1936 – 1948
1 SAR = 10.6918 g silver 20 SAR = 7.32238 g gold
1948 – September 1948
1 SAR = 10.6918 g silver 65 SAR = 7.32238 g gold
1948 – 1951
1 SAR = 10.6918 g silver
The goldsovereign coin was made legal tender in Saudi Arabia with an initial value of 62 riyals.
1951 – 21 October 1952
Informal fixed exchange rate (3+15/22 SAR = 1 USD)
Government begins stabilisation of exchange rate in relation to the U.S. dollar. Saudi Arabia adopted the gold standard. Implied exchange rate with the British sovereign coin was 40 riyals.
22 October 1952 – 1 November 1954
Fixed exchange rate (3+15/22 SAR = 1 USD)
Establishment ofSAMA makes the fixed exchange rate official.
2 November 1954 – 1958
Fixed exchange rate (3.75 SAR = 1 USD)
Slight devaluation as announced by the finance minister.
1958 – 22 January 1959 7 February 1959 – 7 January 1960
Dual exchange rate
A free market currency exchange was established. Official exchange rate was 3.75 riyals per U.S. dollar. A royal decree on 23 January 1959 briefly abolished the free market currency exchange.
8 January 1960 – 14 March 1975
Fixed exchange rate with USD
On 23 August 1971, the riyal was devalued by a sixth so that 4.50 SAR = 1 USD. Saudi Arabia did not follow the devaluation of the USD against gold, causing the exchange rate with respect to the USD to become 4.14475 riyals in December 1971 and 3.73027 riyals in February 1973. Following the1970s energy crisis, the riyal was revalued to 3.55001 riyals per US dollar in August 1973.
The currency was anchored to the IMF's special drawing rights at an initial exchange rate of 4.28255 riyals per SDR and was allowed to fluctuate within a band from September 1975 to July 1981. In practice, since 1986, the currency has been pegged to the US dollar at a rate of 3.745 (now 3.75) riyals per US dollar.
In 1925, transitional copper coins for1⁄4 and1⁄2 qirsh (in some parts of the country, it is pronounced girsh) were minted inMecca byKing Abdulaziz. They were followed, in 1926, by1⁄4,1⁄2 and 1 qirsh cupro-nickel pieces carrying the title "King of Hejaz and Sultan of Nejd".
In 1927, the royal title was changed to "King of Hejaz and Nejd and Dependencies" and coins were issued in denominations of1⁄4,1⁄2 and 1 qirsh in cupro-nickel and1⁄4,1⁄2 and 1 riyal in silver.
In 1935, the first coins were issued in the name of Saudi Arabia. These were silver1⁄4,1⁄2 and 1 riyal coins which were nearly 50% lighter than the previous issue. Cupro-nickel1⁄4,1⁄2 and 1 qirsh were also issued from 1937. In 1946 (AH 1365), many of the cupro-nickel coins were countermarked with the Arabic numerals 65 in what Krause and Mishler describe as "a move to break money changers' monopoly on small coins". Cupro-nickel 2 and 4 qirsh were introduced in 1957.
In 1963, the halala was introduced, and bronze 1 halala coins were issued. That was the only year they were struck. Cupro-nickel 5, 10, 25 and 50 halala followed in 1972, inscribed with their denomination in ghirsh or riyal (1, 2 qirsh,1⁄4,1⁄2 riyal). In 1976, cupro-nickel 1 riyal coins were introduced, which are also inscribed with the denomination 100 halala. Bimetallic 1 riyal coins, also marked 100 halala, were issued in 1999.
A new series of 1, 5, 10, 25, and 50 halalas and bimetallic 1 and 2 riyal coins was issued in 2016.
In 1953, theSaudi Arabian Monetary Agency (SAMA) began issuingHajj Pilgrim Receipts for 10 riyals,[7] with 1 and 5 riyals following in 1954 and 1956, respectively. These resembled banknotes and were initially intended for use by pilgrims who exchanged foreign currency for them. However, they became widely accepted in Saudi Arabia and largely replaced silver riyal coins in major financial transactions. Consequently, the Monetary Agency began issuing regular banknotes for 1, 5, 10, 50 and 100 riyals on 15 June 1961. The Pilgrim Receipts were withdrawn on 1 February 1965.[8]
500 Riyal notes were introduced in 1983. 20 and 200 riyal banknotes were issued in 2000 to commemorate the centenary of the founding of what became the Kingdom of Saudi Arabia. The 5th series of banknotes bearing the face ofKing Abdullah were issued in 2007. The 6th series of banknotes bearing the face ofKing Salman were issued on 14/3/1438H (13/12/2016).
On May 20, 2007, "the Saudi Arabian Monetary Agency, pursuant to article (4) of the Saudi Currency Law, issued under the Royal Decree No. (6) and dated 1/7/1379H." announced the fifth domination of the Saudi riyal that featuresKing Abdullah's picture on all notes except the 500 riyals, which featuresKing Abdulaziz. The 100 and 50 riyal notes were released on May 21, 2007. The 10 and 5 riyal notes followed in June 2007, then the 500 riyal followed in September 2007, and finally the 1 riyal note completed the series in December 2007.
It is expected by the SAMA that the fourth (current) series will take approximately two years to phase out, although a complete removal of the current series require more than two years since the fourth series has been in circulation for well over 25 years. The fourth series which featureKing Fahd's picture will remain legal tender under the Saudi Arabian monetary law. The new series have the latest and most advanced security system to prevent from counterfeiting and other similar activities.
The newly renamed Saudi Arabian Monetary Authority unveiled a new family of banknotes with the portrait ofKing Salman on banknotes from 5 to 100 riyals, with a portrait of King Abdulaziz Al Saud on the 500 riyals banknote.[10] On the 4 October 2020, the Saudi Arabian Monetary Authority announced the firstpolymer note to be used in Saudi Arabia, being the 5 riyals note, to replace the current paper banknote, without any announcement on the other banknotes. The banknote was said to feature more environmentally friendly materials and additional security features, in addition to a much longer lifespan.[11]
The commemorative 20 riyal note, released in 2020 to commemorate theG20, attracted attention on release, as its reverse depicts the disputed territory ofJammu and Kashmir as a separate nation fromIndia. While this design feature was met with criticism in most of India, it was received favourably by people in Kashmir and on social media, as it was viewed as a tacit form of approval of the region's separatism movement.[12]
In June 1986, the riyal was officiallypegged to theIMF'sspecial drawing rights (SDRs). In practice, it is fixed at 1U.S. dollar = 3.75 riyals, which translates to approximately 1 riyal = 0.266667 dollar.[22][23] This rate was made official on January 1, 2003.
The riyal briefly rose to a 20-year high after the USFederal Reserve cutinterest rates on September 18, 2007, and the SAMA chose not to follow suit, partially due to concerns about the inflationary effects low interest rates and a lower value for the riyal.[24][25] The riyal returned to its peg against the U.S. dollar in early December 2007.[2][26]
Saudi Arabia is a member of theGulf Cooperation Council, which planned aCurrency union with a single currency by 2010.[2][27] However, all GCC countries operate with their own currency so far.
^"10 ريال".Indiana University. Archived fromthe original on 8 February 2012. Retrieved22 August 2018.
^Linzmayer, Owen (2012). "Saudi Arabia".The Banknote Book. San Francisco, CA: Banknote News.Archived from the original on 2015-09-23. Retrieved2012-05-01.
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