Dollar prices are among the most closely monitored economic indicators in the Saudi financial market, as the Saudi riyal has been pegged to the US dollar for decades under a fixed monetary system. In this context, the exchange rate of the dollar against the Saudi riyal has remained stable at around 3.75 riyals per dollar since the early 1980s, providing a stable financial environment for both individuals and companies. This stability directly reflects on the performance of the Saudi financial market and affects foreign trade, prices of imported goods, and costs for listed companies on Tadawul. In this article, we will detail the concept of dollar prices in the Saudi market, historical shifts, policies of the Saudi Arabian Monetary Authority (SAMA), the impact of exchange stability on local companies such as Hail Cement (3001) and the stock market in general, along with sector analyses and comparisons with competitors. We will also cover the latest data and financial indicators, explaining how global dollar fluctuations affect the local economy, while adhering to the regulatory guidelines of the Capital Market Authority by not providing any investment recommendations. We hope this comprehensive guide serves as a thorough reference for those interested in monitoring dollar prices and their impact on the Saudi market.
Introduction to Dollar Prices in the Saudi Financial Market
The dollar price against the Saudi riyal represents one of the most important indicators of financial and economic stability in the Kingdom of Saudi Arabia. The term dollar prices is used daily in economic and media circles, and it is attributed with a significant impact on international trade movements, foreign investment, and prices of goods and services. Since the early 1980s, the Kingdom has followed a fixed monetary peg policy for the riyal to the US dollar at the level of 3.75 riyals per dollar, a policy that has allowed for long-term stability in currency markets and local exchange rates. This monetary peg has contributed to attracting international investments and has helped Saudi companies plan financially without worrying about currency fluctuations. In this section, we briefly explain the importance of dollar prices in the Saudi market and why exchange stability is a critical factor in the performance of the national economy.
Monetary Peg Policy: History and Stability of the Riyal Against the Dollar
Since the early 1980s, the Saudi government has adhered to a policy of pegging the riyal to the US dollar, meaning that the riyal is officially fixed against the dollar at a specified price (3.75 riyals per dollar). This policy is based on ensuring price stability, protecting the economy from global currency fluctuations, and facilitating trade operations, especially since most of the Kingdom's exports (such as oil) are priced in dollars. The Saudi Arabian Monetary Authority (SAMA) monitors the market and provides the necessary liquidity to maintain this peg, holding substantial dollar reserves to support the official price. This policy has seen only minor adjustments over the past decades, despite significant changes in the global economy, making the Saudi riyal one of the most stable currencies in the region.
Determinants of Dollar Prices in the Saudi Market
Although the dollar price against the Saudi riyal is theoretically fixed due to the monetary peg policy, there is a narrow range for price movement in the market (often a few halalas around 3.75 riyals per dollar). This small range is subject to supply and demand factors in the monetary market, SAMA interventions, and the level of foreign reserves. Additionally, global actions such as increases in US interest rates affect the dollar's global standing, which may increase demand for dollars in the Saudi market. Nevertheless, local prices remain stable due to SAMA's interventions and its provision of necessary dollars to banks. These determinants serve to reassure investors and companies that currency fluctuation risks are extremely limited in the Kingdom.
Impact of Dollar Price Stability on the Saudi Economy
The stability of dollar prices against the Saudi riyal contributes to supporting local economic growth in several ways. First, it reduces the risks of exchange rate fluctuations, making it easier for companies and investors to plan long-term finances. Second, it provides a favorable environment for foreign trade, as the costs of imports and exports remain known in advance. Third, it limits the transmission of imported inflation, as most imported goods are priced in dollars. However, this stability requires substantial dollar reserves and cautious monetary policy from SAMA. Conversely, it may constrain the flexibility of local monetary policy, as SAMA sometimes needs to align with US monetary policy to maintain the peg.
Dollar Price, Import Prices, and Local Inflation
The global dollar price indirectly affects the prices of imported goods in Saudi Arabia. When the dollar rises globally against other currencies, the cost of importing certain goods (such as machinery and metals) from Europe or Asia may increase. However, thanks to the monetary peg, the impact on local consumers remains limited, as the dollar price against the riyal does not change. In recent years, we have observed that the prices of many imported goods have not seen significant increases in Saudi Arabia despite global dollar fluctuations, reflecting the effectiveness of local monetary policy in protecting the economy from imported inflation.
Impact of Dollar Prices on Listed Companies in Tadawul: Case Study of Hail Cement (3001)
Hail Cement (3001) serves as a good model for studying the impact of dollar prices on Saudi companies. The company primarily operates in riyals and sells its products in the local market, making it less exposed to currency fluctuations compared to export companies. However, Hail Cement relies on importing some equipment and raw materials priced in dollars. Thanks to the stability of the exchange rate, the company can plan its finances accurately without worrying about sudden increases in costs. Conversely, if the dollar rises globally, the global prices of imported materials may increase, but the impact on the company remains limited as long as the monetary peg continues. For the stock page, you can visit: /stocks/3001/
Recent Data on Dollar Prices in the Saudi Market (2024–2025)
Recent data indicates that the exchange rate of the dollar against the Saudi riyal has remained almost constant at 3.75 riyals throughout 2024 and 2025. On January 23, 2026, the official price reached 3.7499 riyals per dollar, reflecting significant stability despite global fluctuations. SAMA has not announced any substantial changes in its foreign reserves, indicating the continued strength of its monetary policy. Local inflation has remained within moderate levels thanks to this stability, and import prices have not seen notable increases. This stability in dollar prices is a key factor in maintaining the stability of the Saudi economy and the stock market.
Saudi Cement Sector: Competition, Challenges, and Impact of Dollar Prices
The stock of Hail Cement (3001) falls within the Saudi cement sector, which includes leading companies such as Yamama Cement, Saudi Cement, and Eastern Province Cement, among others. The sector faces challenges of production saturation and relatively slow demand, putting pressure on profit margins. Most companies rely on the local market and benefit from the stability of the dollar price in determining import and operating costs. Energy prices represent an important competitive factor, and any global changes in dollar prices may raise the costs of imported raw materials. However, the monetary peg remains a key stabilizing factor, limiting risks related to exchange rate fluctuations.
Financial Analysis of Hail Cement (3001): Performance Under Dollar Price Stability
The financial performance of Hail Cement (3001) reflects the impact of dollar price stability on its results. The stock is currently trading in the range of 10–12 riyals per share, with a market capitalization of less than 500 million riyals. The company has experienced periods of profitability and loss, and the price-to-earnings ratio (P/E) has gone through periods of increase or even recorded negative values due to weak profits. The company has not announced any cash distributions in recent years due to losses or limited profits. In the first quarter of 2024, revenues increased by 19% to 73.8 million riyals, but net profit declined by about 19%. This performance reflects cost pressures, but it also highlights the importance of dollar stability in reducing the company's financial risks.
How US Interest Rates Affect Dollar Prices and the Saudi Economy
When the US Federal Reserve raises interest rates, the dollar strengthens globally. In Saudi Arabia, due to the monetary peg, the dollar price against the riyal does not change, but the Saudi central bank often raises local interest rates in parallel to maintain the attractiveness of the riyal and the strength of the peg. This integration between monetary policies maintains the stability of the Saudi financial market and limits capital outflows. However, the local economy may be affected by increased borrowing costs and slowed investment, which reflects on the performance of listed companies in the market such as Hail Cement.
Recent Developments in Currency Policy and Monetary Digitization in Saudi Arabia
In 2024 and 2025, the Kingdom continued to affirm its commitment to the monetary peg policy, with no significant changes in the exchange rate announced. Discussions have emerged regarding the launch of a digital riyal, but no official decision has been made that directly impacts liquidity or the exchange rate so far. Statements from the Ministry of Finance and SAMA have emphasized the priority of currency stability, maintaining the confidence of local and foreign investors in the Saudi market. Investments in the financial sector remain clearly supported by monetary policies and the continued stability of dollar prices against the riyal.
Outlook for Dollar Prices in the Saudi Market
Economic analyses indicate the continuation of the monetary peg policy in Saudi Arabia in the coming years, which means the stability of dollar prices against the Saudi riyal will persist. This stability depends on the availability of sufficient foreign currency reserves and the success of financial policies in controlling inflation and liquidity. Despite discussions about increasing the flexibility of monetary policy in the distant future, there are no immediate indicators of changes to the current system. This stability serves as an attraction for investment and supports long-term financial planning for companies and individuals.
Role of the Saudi Arabian Monetary Authority (SAMA) in Managing Dollar Prices
The Saudi Arabian Monetary Authority (SAMA) plays a pivotal role in managing dollar prices against the riyal. SAMA monitors the supply and demand for dollars in the local market daily and announces the official price continuously. It holds substantial reserves of foreign currency to ensure that all market demands are met and uses monetary policy tools such as interest rates and open market operations to maintain the peg. During times of crisis or global market fluctuations, SAMA intervenes to adjust liquidity and ensure the stability of the exchange rate, enhancing the resilience of the Saudi economy against external financial shocks.
Implications of Dollar Price Stability for Investors and the Saudi Stock Market
The stability of dollar prices against the riyal is a significant advantage for investors in the Saudi stock market. It reduces currency risks and allows for clearer asset valuation and investment planning. Local companies benefit from cost clarity, while foreign investors are reassured about the ability to convert profits without exchange rate losses. Nevertheless, investors should monitor global and local developments, as changes in financial policy or major economic events may affect the investment environment. Dollar price stability remains one of the pillars attracting capital to the Saudi market.
Conclusion
In conclusion, it is clear that dollar prices in the Saudi financial market represent a fundamental pillar of economic stability and provide a safety factor for both companies and investors. The monetary peg policy that the Kingdom has followed for decades has created a stable environment, enabling companies like Hail Cement (3001) to plan long-term finances and alleviating the risks of exchange rate fluctuations. It has also helped protect consumers from global price fluctuations and stimulated both foreign and local investment. However, it remains important for those interested in the stock market and financial indicators to keep up with changes in monetary and economic policies and understand the impacts of global interest rates on the local market. If you wish to learn more or have inquiries about investing, we always recommend consulting a licensed financial advisor, and you can use the SIGMIX platform to follow reliable analyses and financial data.
Frequently Asked Questions
The exchange rate of the dollar against the Saudi riyal has been stable at approximately 3.75 riyals per dollar since the early 1980s. The Saudi Arabian Monetary Authority (SAMA) announces the official price daily, and it often does not change from this level. In 2024 and 2025, the official price remained unchanged, reflecting the continued fixed monetary peg policy in the Kingdom.
This is due to the monetary peg policy followed by Saudi Arabia, where the riyal is officially fixed against the dollar at a specified price. Even if the dollar rises against other currencies globally, the Saudi riyal remains stable as long as the peg policy is in place. SAMA supports this stability through sufficient dollar reserves and ensures that the demand for dollars in the local market is met.
The impact of dollar changes on the Saudi economy is limited directly due to the monetary peg. However, there are indirect effects: the cost of some imported materials may increase and affect the profits of companies dealing in dollars. But the stability of the riyal provides a safe environment for corporate planning and reduces imported inflation, supporting the stability of local prices.
So far, Saudi Arabia has not announced any plans to change the monetary peg policy. The peg policy is likely to continue as long as there are sufficient foreign currency reserves, and inflation and liquidity are controlled through other tools such as interest rates. Any change in the exchange rate would require careful consideration of its effects on the national economy.
The stability of the dollar price against the riyal provides investors with clarity in costs and profit expectations, reducing currency risks. Companies can plan for imports or exports with confidence, and individual investors are reassured that their savings and investments will not be affected by sudden currency fluctuations, enhancing the investment climate in the Kingdom.
When the US Federal Reserve raises interest rates, the dollar strengthens globally. In Saudi Arabia, SAMA often raises local interest rates in parallel to prevent capital outflows and maintain the attractiveness of the riyal. However, the exchange rate itself remains stable due to the monetary peg. Any change in interest rates affects the cost of borrowing and investment locally.
Companies that import raw materials or export products priced in dollars are more affected by dollar changes compared to local companies. For companies like Hail Cement (3001), the impact is often limited to the cost of imports or equipment prices. The stability of the riyal reduces profit fluctuation risks and allows for better financial planning, supporting the stability of listed companies' performance.
The main competitors of Hail Cement (3001) in the Saudi market include Yamama Cement, Saudi Cement Company, Eastern Province Cement, Tabuk Cement, Qassim Cement, and Najran Cement. These companies cover most areas of the Kingdom and have larger production capacities, while Hail competes primarily in the northern and western regions.
In the first quarter of 2024, Hail Cement's sales rose to 73.8 million riyals (a 19% annual increase), but net profit declined by about 19%. The company repaid a bank loan during 2024 and continues its expansion plans for its facilities and improving efficiency. It has not announced dividends recently due to weak profits, with management focusing on cost reduction.
Hail Cement has not announced any cash distributions in recent years due to incurring losses or limited profits. Dividend distribution policies depend on achieving sufficient net profits and obtaining approvals from regulatory authorities. So far, the company is focused on improving financial performance and supporting expansion plans before considering dividend distribution.
SAMA manages the supply and demand for dollars in the local market through daily interventions and continuously announces the official price of the currency. It holds large reserves of foreign currency and uses monetary policy tools such as raising or lowering interest rates to maintain the monetary peg and ensure the stability of the exchange rate, especially during times of global fluctuations.
The stability of dollar prices against the Saudi riyal reduces currency risks and makes asset valuation and investment planning clearer. Local and foreign investors are reassured about the ability to convert profits without exchange rate losses, which supports market liquidity and encourages long-term investments.