Dollar: Everything You Need to Know About Dollar Exchange Company

Dollar Exchange Company was established as a Saudi joint-stock company specializing in providing financial exchange services, remittance transfers, and cash services related to currency conversion. The company adheres to the strict regulations of the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority, enhancing its credibility and the trust of clients and investors. The company plays a crucial intermediary role between the local banking system and global markets, providing foreign currency buying and selling services and international money transfers for both individuals and businesses. Dollar Exchange benefits from the importance of the US dollar in the Saudi economy, as the Saudi riyal is priced in dollars, and most international trade transactions are conducted in this currency. All of this makes the company a key player in the exchange sector in the Kingdom, especially with the increasing demand for international transfer services from residents and investors.

The latest data as of the end of 2025 indicates that Dollar Exchange Company's stock is trading at 185 Saudi riyals, with a market capitalization of approximately 1.48 billion riyals. The company's price-to-earnings (P/E) ratio is 14.5 times, which is average within the financial sector. The company announced a dividend distribution of 2 riyals per share for the fourth quarter of 2024, resulting in an annual dividend yield of about 1.08%. In terms of revenue and profits, the company achieved a net profit of 8 million riyals in the fourth quarter of 2024, reflecting a growth of 33% compared to the same period last year, while operating revenues in the same quarter reached 120 million riyals, an increase of 12% from the previous year. Overall, the company recorded a 12% growth in annual revenues to reach 430 million riyals in 2024, and a 17% growth in net profits to 28 million riyals. These figures reflect a significant improvement in profit margins, driven by increased demand for exchange and remittance services, in addition to the expansion of digital services and reduced operational costs.

Dollar Exchange Company is classified within the diverse financial services sector in the Saudi financial market, which includes non-bank currency exchange and money transfer companies. This sector has undergone significant transformations in recent years, with the Saudi government aiming to enhance financial technology and financial inclusion in line with Vision 2030. Companies operating in this sector are subject to strict oversight from SAMA, which imposes high liquidity and capital requirements and regular audits of operations. Major exchange companies control about 75-80% of the market, and Dollar Exchange holds a significant market share of approximately one-third of the sector's size. The company competes with strong institutions such as the Saudi Exchange Company (SWEF) and Al Ahli Exchange, alongside international companies like Western Union. The performance of companies in this sector depends on their ability to adapt to digital transformation and provide high-quality services quickly and securely.

With the increasing shift towards a digital economy, Dollar Exchange Company has launched several technological initiatives to facilitate financial transfer operations. In 2024, the company announced a partnership with a Saudi bank to launch an electronic remittance service via smartphone applications. This service allows customers to send and receive money quickly and securely without the need to visit branches, aligning with SAMA's policies to support digital payments. The company has also sought to develop electronic platforms that enable customers to track their financial transactions in real-time, enhancing customer satisfaction and helping to expand its base of young and expatriate users. These steps affirm the company's commitment to adopting the latest financial technologies, thereby enhancing its competitiveness in the Saudi market.

The price of the US dollar and global monetary policies directly and indirectly affect Dollar Exchange Company's operations. Given the fixed exchange rate of the Saudi riyal to the dollar, any changes in US monetary policies, such as interest rate hikes, impact financial flows and the volume of international remittances. In 2024 and 2025, high US interest rates contributed to the stability of the riyal and increased demand for dollars, positively reflecting on the profits of exchange companies. Additionally, the strength of the dollar globally leads to an increase in remittances to the Kingdom, as migrants use the dollar as a primary medium. The company manages exchange rate fluctuations by adjusting buying and selling margins and adhering to SAMA's strict policies regarding liquidity management and cash reserves.

Dollar Exchange Company competes with several strong entities in the Saudi exchange sector, most notably the Saudi Exchange Company (SWEF), which controls more than half of the market and has an extensive branch network. The company also competes with Al Ahli Exchange, known for its strong relationships with local and international banks. Other competitors include UK Exchange, which focuses its activities in the eastern regions, in addition to local banks that offer currency exchange and money transfer services. The company also faces indirect competition from international transfer companies such as Western Union and MoneyGram. Dollar Exchange excels in combining flexibility, speed of service, and modern technologies, making it a preferred choice for a wide range of customers. Continuous competition necessitates service development and innovation to maintain market share.

Dollar Exchange Company is subject to close supervision by the Saudi Arabian Monetary Authority (SAMA), which imposes strict requirements on capital, liquidity, and anti-money laundering procedures. The company also adheres to the rules of the Capital Market Authority, especially regarding disclosure and governance. In 2024, SAMA tightened cash reserve requirements for companies operating in the exchange sector, prompting Dollar Exchange to enhance its liquidity management strategies and update its internal policies. These regulations are a key factor in the company's sustainability and the protection of clients' and shareholders' rights. Although these policies may increase financial burdens, they enhance the stability of the sector and investor confidence.

Dollar Exchange Company relies on a well-considered expansion strategy, including opening new branches within the Kingdom and exploring regional expansion opportunities in Gulf countries. In 2025, reports indicated the company's intention to open branches in the UAE and Qatar, leveraging its experience in the Saudi market and the rising demand for remittance services in the region. The company also continues to invest in developing digital infrastructure and expanding electronic services, allowing it to reach new customer segments. This expansion supports sustainable growth in revenues and profits and enhances the company's position as a reliable regional partner in the exchange sector.

In 2024, Dollar Exchange Company witnessed a series of significant developments, including the launch of electronic remittance services and improvements to its digital transfer platforms. The company also announced plans to restructure its capital and add financial consulting services to support future expansion. In the market, Dollar stock continued to perform positively, supported by growth in the volume of remittances and profits. Economic sources reported that the company seeks to enhance transparency governance and develop operational efficiencies by engaging external consultants. These steps have been well-received by observers and investors, providing an additional boost of confidence for the stock in the Saudi market.

The price of Dollar stock is influenced by several factors, including the company's financial performance, profit and dividend distribution levels, expansion plans, and the level of competition in the sector. Global economic changes, such as oil prices and the dollar exchange rate, also affect the volume of international remittances and, consequently, the company's revenues. Regulatory policies play a crucial role; raising capital requirements or tightening oversight by SAMA leads to changes in operational costs, which reflect on profits and the market price of the stock. Other influencing factors include the overall sentiment in the Saudi stock market, as financial stocks generally follow the trends of the general index (TASI) and the movement of capital in the financial sector.

Dollar Exchange Company follows a dividend distribution policy that aligns with its financial results and market conditions. The board of directors determines the distribution ratio based on annual profits and the company's future investment and expansion needs. In 2024, the company distributed 2 riyals per share for the fourth quarter, reflecting its commitment to providing a stable return to shareholders while maintaining sufficient liquidity for future investments. The distribution policy may vary from year to year based on financial performance and company plans, with details announced at general shareholder meetings. This policy aims to achieve a balance between attracting investors and sustaining growth.

Dollar Exchange Company places utmost importance on risk management, especially in the field of financial transfers and dealing with foreign currencies. The company relies on advanced systems to monitor all financial operations and transfers, adhering to strict policies to combat money laundering and terrorist financing in accordance with SAMA's requirements. It also manages exchange rate risks by adjusting profit margins and efficiently managing liquidity to ensure meeting customer demands under all circumstances. The company also adheres to governance and disclosure policies, periodically reviewing its strategies in collaboration with external consultants to ensure compliance with the highest quality and safety standards.

The Saudi government aims to enhance financial inclusion and modernize the infrastructure of financial services through Vision 2030. This trend supports the transformation of exchange companies towards digital services and provides growth opportunities by encouraging electronic payments and increasing foreign investments. The government has launched several initiatives to facilitate remittances and support migrants, positively reflecting on the volume of business for exchange companies. Dollar Exchange has benefited from these initiatives by expanding its digital services and improving its operational efficiency. This government support is expected to continue enhancing the sector's position, with the need to keep pace with technological and legislative developments to ensure continued success.

The Saudi exchange market enjoys significant growth opportunities supported by an increase in expatriate labor, foreign investments, and expansion in tourism and major projects such as NEOM and the Red Sea. The digital transformation also opens new channels for customer service and provides innovative companies with a competitive advantage. Conversely, companies face challenges including intense competition from banks and international transfer companies, increasing regulatory compliance requirements, and information security risks. The success of companies like Dollar Exchange depends on their ability to develop digital services, efficiently manage costs, and adapt to rapid changes in the business environment.