Gold Prices in Saudi Arabia: A Comprehensive Overview of Factors and Recent

Gold is one of the oldest and most stable financial assets throughout history, holding a special place in the Saudi economy. In the context of the Saudi financial market (Tadawul), gold is considered a key commodity whose prices are tracked globally, and it is not listed as a direct financial asset like stocks or sukuk. The importance of gold in the Kingdom is highlighted by its status as a reliable store of value against market fluctuations, as well as its widespread use in traditional jewelry and the industrial sector. Central banks, led by the Saudi Arabian Monetary Authority (SAMA), play a role in the national gold reserves, reinforcing its position as a strategic reserve asset. This importance is reflected in national policies supporting the mining sector under Vision 2030, which aims to diversify the economy and increase the contribution of minerals, especially gold, to the GDP.

Gold prices in Saudi Arabia are primarily determined by global market factors, where the price of the ounce is calculated in US dollars on international exchanges such as the London or New York Stock Exchange. Locally, this price is adjusted for transportation costs, profit margins, and assay fees, resulting in the price per gram in Saudi riyals. With the fixed exchange rate of the riyal against the dollar, the local gold price correlates positively with movements in the global price. In 2024 and 2025, the price of an ounce of gold ranged between $2,000 and $2,150, reflecting local prices between 226 and 240 riyals per gram of 24-carat gold, before slightly declining in mid-2025 as inflation fears eased. Al Rajhi Bank and SAMA are among the prominent daily sources for updated gold prices, with regulatory bodies like the Capital Market Authority and the Ministry of Commerce monitoring gold shops' compliance with pricing transparency.

Global gold prices experienced notable fluctuations in 2024 and 2025, driven by factors such as global inflation, central bank policies, and geopolitical tensions. The price of the ounce peaked at $2,150 in mid-2024, before stabilizing between $2,000 and $2,100 in 2025. This was locally reflected in a relative stability of gold prices in riyals, with a slight decline during periods of reduced global demand. Seasonal demand linked to holidays and wedding seasons in the Kingdom also contributed to stabilizing prices at similar levels, with minor differences between the official selling price and retail prices in gold shops. Data from the General Authority for Statistics indicates a general stability in the gold price index within the consumer price basket during this period.

The mining sector, particularly the Saudi Arabian Mining Company (Ma'aden), is the main driver of local gold production. Although Ma'aden's activities encompass several strategic minerals, gold occupies a leading position in the company's operations and joint ventures (such as Barrick). In 2024, Ma'aden recorded a 14% growth in revenues and an 18% increase in net profit compared to 2023, achieving quarterly revenues of 9.5 billion riyals in the fourth quarter of 2024. The importance of this sector is increasing in light of the Kingdom's trends to enhance the mining sector's contribution to the economy and expand exploration licenses, providing additional opportunities to increase local gold production. Ma'aden remains the dominant player in the market, with small emerging companies seeking to enter partnerships or establish a competitive presence in the future.

Gold prices are influenced by several key economic factors, most notably inflation, the US dollar exchange rate, global interest rates, and the supply and demand for the metal. In Saudi Arabia, religious and social seasons play a role in increasing demand for gold, especially during holidays and wedding seasons. On the other hand, SAMA's policies and the Capital Market Authority's regulations help stabilize the market and prevent price manipulation or significant discrepancies between official prices and retail prices. Additionally, global gold production is expected to increase by 1-2% annually, according to mining reports in 2024, contributing to price stability in the medium term. Furthermore, global geopolitical events drive investors to seek gold as a safe haven, often leading to price increases during periods of turmoil.

The gold market in Saudi Arabia is overseen by multiple regulatory bodies, primarily the Capital Market Authority (CMA), the Ministry of Industry and Mineral Resources, and SAMA. These entities impose strict standards to ensure transparency in gold pricing, especially in jewelry shops, and prevent manipulation of weight, purity, or price. In recent years, the government has tightened oversight of gold shops and imposed temporary price ceilings during certain periods to protect consumers. The Ministry of Industry has also launched bids to explore vast mining areas, supporting sector growth and increasing opportunities for expanding local production. These policies help narrow the gap between global and local prices, achieving greater parity between supply and demand within the Kingdom.

Although exchange-traded funds (ETFs) or futures contracts for gold are not available in the Saudi Tadawul market until 2025, major Saudi banks have begun developing digital investment products that allow the purchase of shares in certified gold bullion through banking applications. This development facilitates individual investment in gold without the need to physically hold the metal, reducing risks of theft and damage. Additionally, individuals can purchase gold bars or coins from banks or certified jewelry shops, ensuring the purity, weight, and accompanying certification. Some financial institutions also allow gold to be included in murabaha contracts, but this remains a limited option compared to global markets.

Gold is a traditional competitor to several types of investments in Saudi Arabia, including stocks, real estate, and bank deposits. During periods of economic uncertainty or rising inflation, some investors tend to increase their gold holdings as a hedge against the erosion of purchasing power. In contrast, stocks (such as Aramco or Ma'aden) and real estate offer potential periodic returns, while gold does not yield direct returns but retains its value over the long term. Additionally, direct gold purchases require consideration of manufacturing, storage, and insurance costs. In recent years, investor trends have shown a shift towards diversifying investment portfolios between gold and other assets to mitigate risks and achieve a better balance between security and return.

The gold sector in Saudi Arabia has witnessed significant regulatory and technological developments in 2024-2025. The Ministry of Industry and Mineral Resources has launched large bids to explore new mines, as part of the Kingdom's vision to enhance the role of mining in the national economy. Technologically, banks like Al Rajhi have announced the development of digital wallets for purchasing shares in gold bullion electronically, reflecting the market's shift towards digitization and facilitating access to investment assets. Regulatory bodies have also emphasized the implementation of transparency standards and fair pricing in jewelry shops, launching consumer awareness campaigns about their rights and responsibilities when purchasing gold. These developments aim to improve the investment environment in gold and attract more individuals and institutions to the sector.

The mining sector in Saudi Arabia, particularly gold production, is experiencing increasing growth supported by government policies aimed at maximizing the sector's contribution to GDP. The profitability of mining companies is linked to factors such as global commodity prices, energy costs, technological developments, and environmental challenges. Among the main risks are gold price volatility, rising production costs, and dependence on oil prices. Companies like Ma'aden are adopting sustainable technologies to improve gold extraction and reduce environmental impact, focusing on expanding partnership and exploration projects. Meanwhile, competition in the local market remains limited with Ma'aden's dominance, but expectations are for the emergence of new companies as exploration licenses continue to be issued.

The Saudi gold market is characterized by Ma'aden's dominance in local production, with small companies seeking to expand supported by government licensing policies. Regionally, other Gulf countries like the UAE and Qatar provide active gold markets, but Saudi policies encourage keeping demand local. In the retail sector, jewelry shops are subject to strict oversight to ensure transparency in pricing and quality. In terms of investment alternatives, gold competes with traditional assets like stocks and real estate, witnessing increasing interest with each wave of global economic or political fluctuations.

Among the key recent developments are the Saudi government's launch of large tenders for exploring new mines, SAMA's announcement of continued retention of national gold reserves, and the introduction of new digital products through banks for purchasing gold electronically. Recent developments also included strict regulations on jewelry shops and the imposition of temporary price ceilings during certain periods. Globally, geopolitical tensions and decisions by major central banks have led to notable fluctuations in ounce prices, which in turn affected local prices. Additionally, some commemorative gold coins have been issued, enhancing the culture of gold saving in Saudi society.

Gold prices in Saudi Arabia can be monitored through official websites such as Al Rajhi Bank, SAMA, or local and international financial news platforms. It is advisable to compare the global price with the selling price in gold shops, considering manufacturing margins and taxes (if any). Reports from the General Authority for Statistics provide periodic indicators on gold prices within the consumer price index. Before making any investment decision, it is preferable to study general price trends, understand the impact of local and global economic factors, and consult a licensed financial advisor to ensure that the investment aligns with personal goals and potential risks.