The topic of 'Dollar Saudi Riyal' is a cornerstone in understanding the monetary and economic structure of the Kingdom of Saudi Arabia, where financial institutions and the government place utmost importance on the stability of the riyal's exchange rate against the dollar. Since the mid-1980s, the Saudi Arabian Monetary Authority (SAMA) has adopted a policy of pegging the Saudi riyal to the US dollar at a fixed rate of about 3.75 riyals to the dollar, a policy that has proven successful in achieving economic and monetary stability for the Kingdom. This peg affects not only monetary policy but extends to all economic sectors, from oil and petrochemicals to infrastructure and financial markets, forming the basis for planning by both local and international companies operating in the Kingdom.
In recent years, specifically during 2024 and 2025, Saudi economic data has shown a continued commitment to this monetary policy, even amidst global market fluctuations and rising inflation rates in many major economies. The strong foreign reserves, which reached about $500 billion, have bolstered the Kingdom's credibility and its ability to defend the stability of the national currency. Additionally, stable and increasing oil revenues provide a financial resource that enhances the sustainability of this peg and contributes to reducing inflation rates to between 1% and 2% annually.
The peg of the riyal to the dollar gains additional importance in industrial sectors, such as the cement sector, where companies like Ha'il Cement rely on the stability of imported raw material prices and production costs. Moreover, currency stability facilitates financial planning and reduces investment risks. In this detailed article, we examine the historical, economic, and technical aspects of the dollar-ryial peg, analyzing its impact on the Saudi economy in general and the cement sector in particular, while highlighting the performance of Ha'il Cement stock in the Saudi Tadawul market.
Monetary History of the Saudi Riyal Pegged to the US Dollar
Saudi Arabia officially began pegging the riyal to the US dollar in the mid-1980s, following a period of experimentation with flexible exchange rate policies or pegging the currency to a basket of currencies. The final decision to peg was a result of the need to reduce sharp fluctuations in oil prices and government revenues, as oil is the primary source of state revenue and is sold and priced globally in US dollars. During that period, international financial markets experienced sharp fluctuations due to oil crises and changes in monetary policies in the US and Europe, affecting currencies linked to oil-dependent economies.
The primary goal of the peg was to achieve long-term monetary stability and increase the predictability of government and corporate costs and revenues. Pegging the riyal to the dollar at a rate of 3.75 riyals to the dollar contributed to stabilizing local prices, as inflation rates significantly decreased since the policy's implementation, providing a safer investment environment for both local and foreign investors. This also enabled the Kingdom to effectively manage its foreign reserves, as it retains most of its reserves in dollars or dollar-denominated assets.
This policy has enhanced the credibility of the Saudi economy in front of global financial institutions, leading to improved credit ratings for the Kingdom over decades. Moreover, the Saudi riyal has become one of the most stable currencies in emerging markets, making it a preferred choice in international and regional trade transactions, especially in the oil and energy sectors. Historically, the Kingdom has not faced any severe monetary crises due to the peg policy, but has faced global crises with relative stability in the currency's value, enhancing the government's and companies' ability to plan long-term and establish investor confidence.
Mechanisms for Stabilizing the Riyal's Exchange Rate Against the Dollar
The Saudi Arabian Monetary Authority (SAMA) follows precise procedures to maintain the stability of the riyal's exchange rate against the dollar. Technically, the peg system relies on SAMA's commitment to buy or sell dollars against riyals at the fixed rate of 3.75 riyals to the dollar. This is done through direct intervention in the foreign exchange markets whenever excessive demand or supply pressures arise.
SAMA maintains substantial foreign currency reserves, which reached approximately $500 billion by mid-2025, granting it significant capacity to intervene in the market in the event of any exceptional fluctuations. SAMA employs various tools such as interest rates on deposits and lending, open market operations, and bank liquidity management to adjust the financial market and ensure the stability of the local currency's value.
Monetary policy plays a crucial role in supporting the peg, as SAMA often follows the movements of US interest rates. When the US Federal Reserve raises interest rates, SAMA tends to make a similar adjustment to ensure that foreign capital does not exit the local market, maintaining the attractiveness of the riyal as a currency for saving and investment. At the end of 2024, Saudi interest rates ranged between 5% and 6% to align with their US counterparts, further enhancing the stability of the exchange market and supporting investor confidence.
SAMA also monitors capital accounts and the current account to ensure the flow of foreign currencies and balance of payments. In the event of a significant current account deficit or sudden capital outflow, SAMA is prepared to use its reserves to support the riyal, providing a safety net for the Saudi financial system. These mechanisms differ from free exchange rate systems, as the value of the currency is not left entirely to market forces, but is actively and dynamically managed through direct interventions and specific financial tools.
Importance of the Dollar Peg in the Saudi Economy
The peg of the Saudi riyal to the US dollar plays a pivotal role in maintaining the stability of the Saudi economy. Oil is the main source of government revenues, priced and traded globally in dollars, making exchange rate stability a critical factor in public budget calculations. Thanks to this peg, the Saudi government can accurately predict its oil revenues in local currency and plan public spending without the risks of currency fluctuations.
For companies and investors, the peg provides a stable financial environment with reduced currency fluctuation risks, stimulating both local and foreign investment. For instance, when importing raw materials or equipment from abroad, Saudi companies can accurately estimate costs without needing to hedge against currency risks, which reduces financial costs and increases operational efficiency.
Regarding inflation, the dollar peg has helped keep inflation rates in the Kingdom within very moderate ranges compared to other emerging countries, ranging between 1% and 2% in 2024. It also contributes to stabilizing local prices for goods and services, preventing inflationary waves due to currency exchange fluctuations. This monetary stability has allowed the Kingdom to implement many major development programs such as Vision 2030, which require substantial long-term investments that cannot bear the significant risks associated with currency fluctuations.
Additionally, the peg enhances confidence in the Saudi financial system in front of global markets and credit rating agencies, reflected in high ratings and the Kingdom's ability to borrow on favorable terms when needed. In summary, the dollar peg represents a key pillar for the stability of the Saudi economy, providing a transparent financial environment through which sustainable development and economic prosperity goals can be achieved.
Saudi Economic Performance in 2024-2025: Indicators and Overview
The Saudi economy witnessed remarkable performance in 2024 and 2025, supported by the riyal's peg to the dollar, rising oil prices, and the expansion of non-oil sectors under Vision 2030 programs. The GDP reached approximately $0.9 trillion in 2024, with an annual growth rate ranging between 4% and 5%, driven by the flourishing tourism, entertainment, and financial services sectors, alongside continued momentum in the oil sector.
In terms of inflation, rates remained relatively low between 1% and 2% annually, thanks to stable exchange rates and prices of imported materials. These conditions enhanced the ability of households and companies to plan financially without the risk of sudden price increases. The current account also showed balance with a financial surplus driven by rising oil revenues, with average Saudi oil production reaching about 9.8 million barrels per day in 2024, with prices ranging between $80 and $85 per barrel.
As for foreign reserves, they accumulated to about $500 billion by mid-2025, providing a strong safety net for the monetary system and enabling the Monetary Authority to defend the peg against any external fluctuations. In the financial market, the market capitalization of listed companies on the Tadawul exceeded $1.8 trillion, driven by growth in infrastructure, industry, and services sectors.
The interest rate hike policy granted the Saudi riyal additional attractiveness to investors, with interest rates ranging between 5% and 6% at the end of 2024, aligning with the US Federal Reserve's trends. This consistency in monetary policy allowed the Saudi banking sector to attract new capital flows and support liquidity stability in the banking system. In summary, the indicators of the Saudi economy in 2024-2025 reflected a stable and reliable environment, based on conservative monetary and fiscal policies, bolstered by strong oil resources and clear progress in economic diversification.
Impact of Riyal Stability Against the Dollar on the Saudi Cement Sector
The cement sector represents one of the main pillars of the Saudi economy, playing a pivotal role in construction and building projects under Vision 2030. This sector heavily relies on importing some raw materials and equipment, with energy and transportation costs directly affecting profit margins. Here, the importance of the riyal's stability against the dollar comes into play, ensuring that factories have stable import costs and reducing price fluctuations resulting from currency changes.
In 2024 and 2025, Saudi cement companies benefited from the stability of the exchange rate in several aspects. First, companies were able to sign long-term supply contracts for major projects without needing to hedge against currency risk, allowing them to offer competitive prices to real estate developers and the government. Second, the stability of the riyal led to stable costs for imported materials such as machinery, equipment, and spare parts, contributing to controlling capital and operational expenditures.
Moreover, the stability of the exchange rate encouraged companies to invest in new technologies to reduce emissions and costs, such as using solar energy or converting industrial waste into alternative fuel. These investments often require importing advanced technology or financial commitments in dollars, which is easier to finance in the absence of currency fluctuation risks.
In terms of competition, the stability of the riyal enabled Saudi companies to maintain their market share against foreign suppliers, as they are not exposed to sudden price fluctuations compared to some neighboring countries. Thus, the dollar peg provides a favorable financial environment for the growth of the cement sector, granting companies greater capacity for strategic planning, whether in terms of production, regional expansion, or product development.
Ha'il Cement Company (3001): Financial Overview and Stock Performance Analysis
Ha'il Cement Company is one of the prominent players in the Saudi cement production market, primarily focusing on meeting the increasing demand in the northwest region, especially with major projects like NEOM City. In 2024, the average price of the company's stock was around 20-25 Saudi riyals, reaching 23 riyals in February 2025, reflecting stability and optimism in the company's financial performance.
The market capitalization of Ha'il Cement is estimated at about 3-4 billion Saudi riyals, equivalent to approximately $0.8-1 billion, classifying it among medium-sized companies in the cement sector. The price-to-earnings (P/E) ratio was around 8-10 times, indicating investors' expectations for sustained profits with moderate growth. The company also achieved a net profit growth of 15-20% compared to the previous year, thanks to increased demand, higher selling prices, and reduced operating costs.
Ha'il Cement distributes annual cash dividends to shareholders ranging between 3% and 5% of the nominal value of the share, or between 0.50 and 1.00 riyal per share in 2024. This enhances the stock's attractiveness to investors seeking stable periodic income. The return on equity (ROE) is around 10-12%, with the stock trading at a relatively high book value multiple (1.2-1.5), indicating market confidence in the management's ability to create added value.
The company benefits from its geographical location near major development projects and features effective cost management and investments in sustainability technologies. All these factors, along with the stability of the riyal, provide Ha'il Cement with a strong foundation for future growth and enhancing its market share in the Saudi cement market.
Saudi Cement Sector: Competitive Landscape and Strategic Analysis
The Saudi cement sector represents one of the largest regional markets, driven by massive infrastructure, housing, and energy projects under Vision 2030. The sector includes several large and medium-sized companies competing to offer a variety of products, including Portland cement, ready-mix concrete, and specialized construction products.
Cement companies primarily rely on energy (often natural gas) and limestone as key raw materials. Energy and transportation costs constitute the largest proportions in the cost structure. In recent years, companies have resorted to innovative solutions to improve efficiency and reduce costs, such as using environmentally friendly fuel alternatives and adopting advanced technologies to reduce emissions and improve product quality.
Among the prominent competing companies are: Yamama Cement Company (3002), Eastern Cement (3003), Southern Cement (3004), and Qassim Cement (3005), in addition to smaller companies like Al-Masila (3010). These companies are geographically distributed to cover the entire Kingdom, with Ha'il Cement focusing on northern projects and areas adjacent to NEOM projects, while Yamama Cement and Qassim Cement effectively cover their regions.
Cement prices have gradually increased in 2023 and 2024 with rising demand, contributing to improved profit margins. Companies have also focused on diversifying their customer base, from public housing projects to commercial and industrial complexes. In terms of challenges, the sector faces pressures from strict environmental policies, fluctuations in energy and transportation prices, and the need to keep pace with technological innovation.
Future opportunities are concentrated in expanding towards sustainable construction technologies, exporting cement to Gulf countries and East Africa, and investing in renewable energy to reduce costs. In this context, Ha'il Cement emerges as a medium-sized player with local political and regulatory support, granting it flexibility in securing government contracts and expanding its market share.
SAMA Policies and Credit Ratings: Supporting Riyal Stability and Market Confidence
The policies of the Saudi Arabian Monetary Authority (SAMA) form the backbone of the monetary system's stability in the Kingdom, particularly regarding maintaining the peg of the riyal to the dollar. These policies are characterized by extreme caution, as interest rates and bank liquidity movements are managed in line with changes in US monetary policy. In 2024, SAMA continued to gradually raise interest rates to reach 5%-6%, in parallel with increases in US interest rates.
This policy has maintained the attractiveness of the riyal as a currency for saving and investment, preventing capital outflows, and contributed to maintaining the flow of foreign investments into the Saudi market. In turn, SAMA has tightened its oversight of the banking sector through strict liquidity standards and high reserve requirements, enhancing the resilience of the financial system.
Regarding credit ratings, global rating agencies renewed their confidence in the Saudi economy during 2024, affirming the Kingdom's ability to manage its financial obligations and support the local currency. These positive ratings (such as S&P and Moody's ratings) have facilitated the government and Saudi companies' access to global debt markets on favorable terms. They also provide an additional safety net for local and foreign investors, reducing borrowing costs for major development projects.
Overall, SAMA's policies and stable credit ratings reflect the Kingdom's ability to withstand external shocks and provide the Saudi financial system with high flexibility in dealing with global changes. This context enhances the stability of the riyal against the dollar and provides an attractive and stable investment environment for all economic sectors, especially the cement and heavy industry sectors.
Foreign Reserves and Their Role in Exchange Rate Policy
The foreign reserves held by the Saudi Arabian Monetary Authority (SAMA) are among the largest safety factors in the Saudi monetary system. By mid-2025, these reserves reached approximately $500 billion, distributed among liquid assets such as US dollars, US Treasury bonds, and international financial instruments. These reserves provide SAMA with significant strength to defend the dollar peg policy, allowing it to intervene quickly and immediately in the exchange markets if any pressures arise on the riyal.
Foreign reserves play a dual role: first, they serve as a guarantee to protect the value of the national currency, and second, they are a key confidence factor for local and global financial markets. In the event of a current account deficit or sudden capital outflow, SAMA can sell part of the reserves to buy riyals and support the exchange rate. This has not occurred practically for decades, thanks to the strength of the Kingdom's financial position and its oil flows.
These reserves also serve as a source of strength in international negotiations, as the Kingdom is viewed as a financially sound country capable of meeting its international obligations. Internally, they enhance confidence in the financial system and provide companies and citizens with a sense of security regarding any fluctuations that may occur in global markets.
In recent years, rising oil prices have contributed to strengthening reserves, while part of them has been directed towards investing in strategic projects that yield long-term financial returns. This balance between reserves, liquidity, and investment supports the stability of the monetary system and grants SAMA the flexibility to manage monetary policies and ensure the continuation of the dollar peg without the need for sudden changes in monetary or fiscal policy.
Inflation and Interest Rates: Direct Relationship with Riyal and Dollar Stability
The stability of the riyal against the dollar is a key factor in controlling inflation rates in the Kingdom of Saudi Arabia. When the exchange rate is stable, the cost of imports, especially for essential goods and industrial equipment, remains stable, which reflects in reduced inflationary pressures. In recent years, inflation rates in Saudi Arabia have ranged between 1% and 2% annually, reflecting the effectiveness of the peg policy in protecting the purchasing power of citizens and companies.
On the other hand, the Saudi Arabian Monetary Authority (SAMA) closely follows US interest rate movements. When the US Federal Reserve raises interest rates, SAMA often raises local interest rates similarly. At the end of 2024, interest rates on deposits ranged between 5% and 6%, helping attract foreign investments, maintain bank liquidity stability, and prevent capital outflows to higher-yield markets.
This monetary policy aligned with the US dollar ensures that the riyal does not face significant selling pressures or speculative operations in the exchange market. It creates a balanced monetary environment that allows banks to finance major development projects, whether in construction or industry, without facing sharp fluctuations in financing costs.
On the other hand, low inflation rates allow companies to plan expenses and revenues in the long term, which is crucial in capital-intensive sectors like cement. Under these conditions, both investors and consumers can benefit from price stability and positive growth expectations for the economy as a whole.
Saudi Stock Market (Tadawul): The Impact of the Peg on Listed Companies' Performance
The stability of the Saudi riyal against the dollar is a fundamental factor in the stability of the Saudi stock market (Tadawul), which exceeded a total market value of $1.8 trillion in 2024. This stability gives both local and international investors greater confidence in the ability of listed companies to achieve stable profits and pay dividends without the risks of currency fluctuations.
In the cement sector, monetary stability reflected in increased demand for shares of major companies such as Ha'il Cement, Yamama Cement, and Qassim Cement, as these companies benefited from rising demand for building materials within Vision 2030 projects. The stability of the currency also helped stabilize profit margins in the long term, as the costs of imports or financing were not affected by currency changes, allowing companies to focus on improving operational efficiency and product development.
In 2024-2025, shares in the construction and cement sector showed positive performance driven by profit growth and regular dividends. For example, Ha'il Cement distributed cash dividends of 3%-5% of the share value, making it a preferred choice for investors seeking stable periodic returns. The monetary stability environment also attracted local and foreign investment funds, which prefer low-risk currency markets.
Moreover, the Saudi financial market index maintained high levels throughout 2024, with slight fluctuations at the beginning of 2025 due to external factors, but remained close to its highest levels over the past decade. In such an environment, the importance of the dollar peg in attracting new capital to the market and developing the stock sector as a financing and investment tool within the Saudi economy is highlighted.
Sustainability and Innovation in the Cement Sector: Opportunities and Challenges
Saudi cement companies face increasing challenges related to environmental sustainability and innovation, amid the Kingdom's trends towards a green economy and achieving Vision 2030 goals. The cement sector is one of the largest sources of industrial carbon emissions, necessitating companies to invest in clean technologies to reduce their environmental footprint. Some companies, such as Ha'il Cement, have begun adopting solar energy projects and developing technologies to convert waste into alternative fuel, aiming to reduce costs and emissions simultaneously.
These initiatives provide companies with a competitive advantage in local and regional markets, especially with the growing demand for sustainable construction products from major projects and real estate developers. Investments in sustainability also allow for government incentives and open the door to technical partnerships with global companies specializing in energy and recycling solutions.
Among the main challenges facing the sector are the rising costs of transitioning to green technologies and the need for significant capital investments. However, the stability of the riyal against the dollar facilitates financing these projects, as companies can estimate costs in dollars without currency risks and attract external financing on favorable terms. Additionally, local market stability aids long-term planning for environmental projects.
In the future, competition among Saudi cement companies is expected to increase for leadership in sustainability, potentially leading to the development of new products and expanding the customer base. In this context, medium-sized companies like Ha'il Cement play a pivotal role in leading the sector's environmental transformation and enhancing the competitiveness of the Saudi industry in global markets.
Developments in 2024-2025: Economic and Sectoral Landscape
Saudi Arabia witnessed a series of economic and sectoral developments in 2024 and 2025 that enhanced the stability of the riyal against the dollar and improved the performance of productive and service sectors. SAMA officials repeatedly confirmed the continued peg of the riyal to the dollar and the absence of plans to change this policy in the foreseeable future, reassuring local and foreign markets and investors.
On the macroeconomic front, official data showed GDP growth of 4%-5%, driven by the recovery of services and oil sectors, and the expansion of infrastructure and housing projects. The government launched several major tenders for housing and tourism projects under Vision 2030, with companies like Ha'il Cement participating in major supply bids for these projects.
Cement companies reported clear profit growth, with Ha'il Cement announcing a 10% increase in sales by the end of 2024 compared to 2023, with improved profit margins due to rising demand and gradual price increases. Investments in renewable energy and environmental technologies continued, with the company announcing solar energy projects and carbon capture technologies, in line with national clean energy goals.
In the stock market, the Tadawul index saw a notable rise at the end of 2024, driven by strong corporate results and generous dividend distributions. Global rating agencies renewed their confidence in the Saudi economy, enhancing the stability of the investment environment. Overall, the developments of 2024-2025 reflected a stable and encouraging economic environment for growth, both in traditional and new sectors, reinforced by the stability of the riyal and cautious monetary policies.
The Role of the Dollar in Global Markets and Its Reflections on the Kingdom
The US dollar is the primary reserve currency in the world and is used as a benchmark for pricing most strategic commodities such as oil and metals. The Kingdom of Saudi Arabia relies almost entirely on the dollar for pricing and collecting oil revenues, making the stability of the relationship between the riyal and the dollar crucial at both financial and trade levels.
When the dollar experiences fluctuations in its value against other currencies, the value of Saudi reserves in dollars is affected when converted to other currencies such as the euro or yen, but the local economy is not directly affected due to the riyal's stability. This stability allows the Kingdom to manage its international investment portfolios flexibly, as investments can be redistributed among different currencies and assets to reduce risks.
In trade, the stability of the riyal against the dollar facilitates import and export operations and reduces price change risks for Saudi companies. It also grants the government the ability to plan long-term financial strategies without the need for complex hedging against currency fluctuations. At the level of financial markets, currency stability attracts foreign capital seeking low-risk investment opportunities.
Moreover, the riyal's peg to the dollar gives the Kingdom a negotiating power in international markets, as the riyal is viewed as a stable currency backed by the largest oil economy in the region. In turn, Saudi authorities closely monitor global dollar movements and assess their potential impacts on reserves and financial policies to ensure the continued monetary and financial stability in the long term.
Conclusion
The topic of 'Dollar Saudi Riyal' represents the cornerstone of economic stability in the Kingdom of Saudi Arabia, where the fixed peg between the two currencies establishes a solid foundation for national economic growth and the development of industrial sectors. The Saudi experience has demonstrated the success of the peg policy in achieving long-term monetary stability, reducing inflation rates, and supporting an attractive investment environment for both local and foreign investors. This policy has assisted major companies like Ha'il Cement in financial planning, cost control, and benefiting from stable exchange rates in executing large projects under Vision 2030.
Recent data and indicators suggest the continued strength of foreign reserves, economic growth, and increasing demand for industrial products, especially in the cement sector. At the same time, the Kingdom continues to develop its monetary and fiscal policies cautiously to ensure the sustainability of the dollar peg and protect the financial system from external shocks. It is important for investors and companies to regularly monitor economic developments and government policies and consider the factors influencing local and global markets when making financial decisions.
In conclusion, it is essential to consult a licensed financial advisor before making any investment or financial decisions to ensure alignment of strategies with individual goals and changing market conditions.
Frequently Asked Questions
The exchange rate of the Saudi riyal against the US dollar is officially fixed at about 3.75 riyals per dollar. This rate has been adopted by the Saudi Arabian Monetary Authority (SAMA) since the mid-1980s to ensure monetary and economic stability. In the official market, this rate rarely experiences changes, as SAMA intervenes quickly to adjust any unusual movements. Minor discrepancies in exchange rates may appear in some parallel markets or when converting currencies for travel, but they remain very limited and do not reflect a change in monetary policy. This stability allows companies and consumers to transact confidently in all financial dealings within the Kingdom.
Saudi Arabia adopted the peg of the riyal to the US dollar for strategic reasons, primarily because oil, the main resource for the economy, is priced and sold globally in dollars. This peg achieves stability in government revenues and facilitates budget planning without currency fluctuation risks. It also protects the economy from external monetary crises and provides a safe investment environment for foreign and local companies. So far, Saudi authorities have not announced any intention to unpeg, confirming in 2024-2025 that the policy will continue to maintain economic stability.
The stability of the riyal's exchange rate against the dollar helps keep inflation rates within low and stable levels. When the exchange rate is stable, the cost of imports of essential goods and industrial equipment becomes clear and is not affected by global currency fluctuations. This reduces the risk of global inflation transferring to the local market. In 2024 and 2025, inflation rates in Saudi Arabia remained within the range of 1%-2% annually, due to this effective monetary stability.
The peg policy to the dollar provides significant monetary and economic stability, but it has some challenges. If the dollar rises significantly globally, Saudi non-oil exports may become less competitive in foreign markets. Additionally, local monetary policy is constrained by the US Federal Reserve's interest rate trends. Despite these challenges, the Saudi central bank manages the policy efficiently and maintains substantial reserves to mitigate any potential pressures on the currency.
The stability of the riyal against the dollar provides a stable financial environment for the cement sector and other industrial companies. These companies can import equipment and raw materials without worrying about currency fluctuations, helping to control costs and offer competitive bids for major projects. It also facilitates attracting external financing and investing in modern technologies. All of this positively reflects on profit margins and long-term strategic planning for companies.
Financial indicators for 2024-2025 showed that Ha'il Cement Company achieved stability in its stock price between 20 and 25 riyals, with net profit growth of 15-20%. The company's market capitalization is approximately 3-4 billion riyals, with a price-to-earnings (P/E) ratio ranging between 8 and 10. The company also continued to distribute cash dividends of 3%-5% of the nominal value of the share, reflecting strong financial performance and effective management in facing operational challenges.
The Saudi cement sector includes several major competitors, most notably: Yamama Cement (3002), Qassim Cement (3005), Eastern Cement (3003), and Southern Cement (3004), in addition to medium and small companies like Al-Masila (3010). These companies compete for government and private project contracts, each enjoying different geographical or technological advantages based on the area they cover and their production size.
Large foreign reserves play a pivotal role in supporting the peg policy of the riyal to the dollar. SAMA holds reserves amounting to about $500 billion in 2025, granting it significant capacity to intervene in the exchange market if needed. These reserves instill confidence in financial markets and provide the Kingdom with flexibility to face any external shocks or temporary current account deficits.
The Saudi Arabian Monetary Authority (SAMA) regularly monitors global and local market conditions and continuously assesses the effectiveness of the peg policy to the dollar. So far, monetary authorities confirm that the peg has achieved its goals in economic and monetary stability, and there are no announced plans to change it. Any potential adjustment in policy is subject to in-depth studies and will only occur if economic conditions necessitate it.
The Saudi financial market closely follows global interest rate movements, especially those issued by the US Federal Reserve. When interest rates rise in the United States, SAMA raises local interest rates accordingly to maintain the attractiveness of the riyal and prevent capital outflows. This consistency in monetary policy helps stabilize the exchange rate and provides the financial market with stability that enhances the confidence of local and foreign investors.
Making investment decisions requires an objective assessment of financial and economic data and an understanding of the factors influencing the market. It is always advisable to consult a licensed financial advisor who can analyze the investor's situation, identify financial goals, and suggest the most suitable strategies. This helps reduce risks and achieve a balance between return and risk, especially in a changing market like the Saudi market.