Gold Price in Saudi Arabia Today

Turning the ounce price into riyals per gram

Because the Saudi riyal is pegged at 3.75 per U.S. dollar, the gram price in riyals is simply the dollar ounce price multiplied by about 0.1206. The factor comes from 3.75 ÷ 31.1035, and it has held steady since the peg was set in 1986.

The Saudi Central Bank, still known by its old initials SAMA, defends that rate. For a gold buyer it means the only moving part in a riyal quote is the world price itself; a strong or weak dollar week makes no difference in Riyadh.

1. Take the international price in dollars per troy ounce.
2. Multiply by 0.120566 to get riyals per gram of 24K.
3. Multiply by 0.875 for 21K, 0.916 for 22K or 0.75 for 18K.
4. Add the shop’s workmanship charge, then VAT on the total.

These figures illustrate the formula only. The live rates are in the table above, and the dollar reference behind them is today’s gold price per ounce.

VAT, zakat and the same bangle in three cities

15% VAT on jewelry

Saudi Arabia introduced VAT at 5% in January 2018 and raised it to 15% on 1 July 2020. Jewelry carries the full rate on both metal and labor. Bars and coins of at least 99% purity are treated as investment metal and zero-rated when they meet the conditions set by the Zakat, Tax and Customs Authority (ZATCA). Confirm the current conditions with ZATCA before relying on the exemption.

Worked example: a 30 g 21K bangle

1. At an example 21K rate of SAR 300 per gram (illustration only), the metal is worth SAR 9,000.
2. An example workmanship charge of SAR 10 per gram adds SAR 300.
3. The subtotal is SAR 9,300.
4. VAT at 15% adds SAR 1,395, for a total of SAR 10,695.

At 15%, VAT is often a bigger slice of the bill than the labor itself, which is why Saudi buyers compare prices with neighbors where VAT is lower or absent.

Zakat on gold

Many Saudi households calculate zakat on gold at 2.5% once holdings reach the nisab, commonly given as 85 grams of pure gold. A family holding 100 g of 21K jewelry owns 87.5 g of pure gold, just above that threshold. Scholars differ on whether jewelry worn regularly is included, so families often ask a local authority rather than rely on a calculator.

Riyadh, Dubai and Doha: the same bangle, three bills

The metal in a 21K bangle costs almost the same in all three cities, because all three currencies are pegged to the dollar. Tax is what separates them. Using the 30 g example above, converted to riyals for comparison:

Labor rates differ by shop, so the real gap can be larger or smaller. Visitors to the UAE can also claim VAT refunds on eligible purchases, which a resident cannot. And a resident who buys abroad still has to declare the goods at Saudi customs on return if they exceed the allowance.

Savings bars instead of jewelry

For money meant as savings, small 24K bars avoid most of this. Qualifying investment gold carries no VAT, the premium over metal is small, and a bar resells at close to the buying rate. Jewelry makes sense when it will be worn; as a pure store of value, the labor and VAT are hard to earn back.

21 karat, pilgrims and seasonal demand

Walk into a gold market in Riyadh or Jeddah and most of the window is 21K. It is rich in color, strong enough for thick bangles and chains, and it is the traditional choice for wedding gold given as part of the mahr. 18K shows up mainly in diamond jewelry and lighter imported pieces, while 22K counters serve the large South Asian community.

• Look for the 875 or 21 stamp on the clasp or inside a bangle.
• Ask that the piece be weighed in front of you on the shop’s scale.
• Get the workmanship charge in writing; it is usually per gram.
• Ask about buyback terms, since shops pay less when you sell than when you buy.

The 21K gold price page shows the same purity in dollars, handy for comparing with other markets.

Gold jewelry styles you will see

Saudi designs favor weight: wide bangles sold in sets, heavy link chains, and bridal necklaces that cover much of the chest. Heavy plain pieces carry lower labor per gram than fine work, so their price stays close to metal value. Light Italian-style chains in 18K cost more per gram of gold because the labor is spread over less metal.

Pilgrims, weddings and seasonal demand

Saudi demand follows the religious and family calendar more than the market calendar.

• Pilgrims performing Hajj and Umrah often buy gold in Makkah and Madinah to take home as gifts, which keeps shops near the holy mosques busy.
• Ramadan and the two Eids bring gift buying and family visits.
• Wedding season adds the heaviest single purchases, often complete 21K sets.
• Expatriate workers buy before trips home, mostly 22K for South Asian families.

Pilgrims should check their own country’s customs rules before carrying gold home. Many countries set a duty-free jewelry allowance, and anything above it is taxed on arrival.

Gold mining in the Kingdom

Saudi Arabia is also a gold producer. The Mahd adh Dhahab mine, whose name means “cradle of gold,” has been worked since ancient times and was reopened in modern times. Domestic production is small next to consumer demand, so most gold sold in Saudi shops is imported and priced from the international market.

For how the riyal quote compares with the dirham, see the UAE gold rate.

Selling gold in Saudi Arabia, plus a glossary

Checking a board against the formula

Riyadh and Jeddah shops post both a selling and a buying rate for each karat. The selling rate normally sits a little above the formula figure from the first section, and the buying rate a little below it. If the selling rate for 21K is well above the formula, the shop is building extra margin into the metal itself, not only into labor. That is worth knowing before you negotiate the workmanship.

When you sell, the shop pays the metal value at its buying rate. The workmanship and the VAT you paid are gone. That makes short-term trading in jewelry expensive: a piece bought and resold on the same day can lose the whole labor charge plus 15%.

• Bring the original invoice; it speeds up the sale and confirms karat.
• Expect a test if the stamp is worn or foreign.
• Exchanging old gold for new often gets a better rate than a cash sale.

For weight-based comparisons, our gold price per gram page gives the dollar figure.

Short glossary

• Iyar (عيار): karat, as in iyar 21.
• Mahr: the gift owed to the bride under the marriage contract, often partly in gold.
• Nisab: the zakat threshold, commonly 85 g of pure gold.
• Workmanship: the labor charge per gram.

Arabic readers can use the Saudi gold rate in Arabic.

Neighboring markets are listed on the gold price by country page.