SAR: Saudi Riyal

The Saudi Riyal (SAR) is the legal tender of the Kingdom of Saudi Arabia. It is issued and regulated by SAMA, the Saudi Central Bank, which is the kingdom's primary monetary authority responsible for monetary policy, currency issuance, and banking supervision.\n\nThe SAR has been pegged to the US dollar at a fixed rate for decades. This peg is a deliberate monetary policy choice that provides exchange-rate stability for trade and investment flows, the majority of which are denominated in USD - most notably Saudi Arabia's oil revenues. Because the rate is fixed by SAMA policy rather than market forces, the SAR does not float freely against other currencies.\n\nSAR is subdivided into 100 halalah. Banknotes and coins are issued in a range of denominations. For banking and financial services in the kingdom, SAMA's regulatory framework governs how the currency is used, held, and transferred by both residents and non-residents.

Expats employed in Saudi Arabia are paid in SAR. Because the SAR is pegged to the USD, remittances converted to other USD-linked currencies (such as the UAE dirham, which carries its own USD peg) involve minimal exchange-rate risk. However, expats remitting to currencies that float against the dollar - such as the British pound, euro, Indian rupee, or Philippine peso - carry full FX exposure on those legs of the transfer.\n\nFor investment purposes, SAR-denominated savings accounts and money-market products fall under SAMA's oversight. Expats holding SAR cash should be aware that returns on SAR deposits tend to track US dollar interest-rate movements, given the peg. Those investing in Saudi-listed equities or funds through the Saudi Exchange (Tadawul) will also settle transactions in SAR, and should confirm the applicable custody and transfer arrangements with their broker directly.