Saudi Arabia's Passion for Gold
Saudi Arabia is one of the world\'s largest gold jewellery markets, with annual demand of over 80 tonnes. Gold is central to Saudi culture — traditionally given as wedding gifts and used as a primary savings vehicle, especially in rural communities.
How Gold is Priced in Saudi Arabia
Saudi gold prices are derived from the international XAU/USD spot price converted to Saudi Riyals (SAR) at the prevailing USD/SAR exchange rate (pegged at approximately 3.75 SAR/USD). Making charges for jewellery vary from 8–15% depending on the design complexity.
24K / gram (SAR)
SR 383
22K / gram (SAR)
SR 351
21K / gram (SAR)
SR 335
18K / gram (SAR)
SR 287
VAT on Gold in Saudi Arabia
Since 2020, Saudi Arabia applies 15% VAT on gold jewellery. However, investment-grade gold (24K bars and coins) is typically zero-rated or exempt. This has shifted some buying toward investment gold products.
Best Gold Markets in Saudi Arabia
- Riyadh Gold Market — Al-Zal District, largest selection of 21K and 22K jewellery
- Jeddah Gold Souk — historic market near Al-Balad, known for intricate craftsmanship
- Mecca Gold Market — seasonal peaks during Hajj and Umrah seasons
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Gold prices mentioned are indicative. Always consult a licensed financial adviser and verify current rates at GoldRateToday.xyz before making investment decisions.