Saudi riyal symbol: strategic step toward global financial standing

Saudi riyal symbol: strategic step toward global financial standing
The digitalization of currencies had transformed the traditional concept of money, with currency symbols now representing all forms of legal tender. (Supplied)
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Updated 08 March 2025
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Saudi riyal symbol: strategic step toward global financial standing

Saudi riyal symbol: strategic step toward global financial standing
  • New symbol signals Kingdom’s commitment to align its financial practices with international standards

JEDDAH: Saudi Arabia’s unveiling of a new symbol for the riyal has been dubbed a “visionary maneuver” that will enhance the currency’s global recognition, strengthen investor confidence, and signal a commitment to financial modernization, Arab News has been told.

As the Kingdom seeks to position itself as a global financial hub, this new symbol, inspired by Arabic calligraphy, reflects a seamless blend of tradition and progress — key to the nation’s ongoing economic reform efforts, according to experts.

It was announced on Feb. 20 that the symbol had been approved by King Salman, a move dubbed as marking “a new chapter in the evolution of our national currency” by the Saudi Central Bank.

The symbol, which blends Arabic calligraphy with the name of the national currency, will be used in financial and commercial transactions both within the Kingdom and internationally.

According to the central bank, also known as SAMA, the symbol will be rolled out immediately, with its integration into financial and commercial transactions, as well as various applications, occurring gradually in coordination with relevant entities.

Tamer Al-Sayed, chief financial officer at FII (Future Investment Initiative) Institute, told Arab News the timing aligned with Saudi Arabia’s Vision 2030-driven economic transformation to become a global financial hub.

“This announcement comes at a time when the world is facing economic volatility — rising inflation, shifting interest rates, and evolving global trade dynamics. In such an environment, having a distinct and recognizable currency identity is more important than ever,” he said.

In response to a question about how the new symbol might impact its recognition and credibility in global financial markets, Youssef Saidi, a research fellow at the Economic Research Forum and former senior economic adviser at the Gulf Monetary Council, said that the introduction of the symbol was a “visionary maneuver.”

He added that a modern symbol could present Saudi Arabia as a forward-thinking nation, positively influencing both the country’s image and the perception of its currency globally. 

This could increase investor confidence in the Saudi market, potentially leading to greater foreign direct investment.

Youssef Saidi, research fellow at the Economic Research Forum

For foreign investors, Saidi said, the introduction of a new symbol may signal Saudi Arabia’s commitment to aligning its financial practices with international standards. “This could increase investor confidence in the Saudi market, potentially leading to greater foreign direct investment,” he said.

Saidi noted that a single, recognizable symbol would streamline monetary transactions, reduce errors, and boost global awareness of the Saudi riyal.

“Just as the dollar, euro, and yen are instantly recognizable, a unique symbol design for the Saudi riyal, ingeniously inspired by authentic Arabic calligraphy, could help it stand out in financial documents, trading platforms, and media coverage,” Saidi added.

FII Institute’s Al-Sayed agreed, stating that the symbol comes as Saudi Arabia is making significant investments in its financial infrastructure, from digital payment systems to foreign investment attraction.

“A strong, well-defined riyal symbol reinforces these efforts, signaling economic stability and modernization to global investors,” Al-Sayed said. Commenting on incorporating Arabic letters in the design, the FII Institute official emphasized that this was an important point because the use of the calligraphy is more than just an artistic choice — it’s a message. 

“Saudi Arabia has always played a central role in the Arab and Islamic world, and its leadership understands that its identity is not separate from its economic growth,” he said.

Al-Sayed noted that using Arabic script in the riyal’s symbol is a statement that modernization does not mean abandoning tradition. 

“In fact, the most successful economies balance heritage with progress. Take Japan, for example — it leads in global innovation while maintaining its cultural identity. Saudi Arabia is following a similar path, blending financial modernization with deep-rooted traditions,” he added.

He further said that the new riyal symbol is not just a visual element, claiming that it is a declaration that Saudi Arabia’s financial identity is “here to stay — both locally and globally.” Asked how the symbol can help Saudi Arabia strengthen its position on the global economic stage, Al-Sayed said that the world was moving toward a more digital and borderless economy and currencies were no longer just physical notes. “Currencies are financial identities recognized across global markets, digital transactions, and potential future digital currencies,” he added. 

A strong, well-defined riyal symbol reinforces these efforts, signaling economic stability and modernization to global investors.

Tamer Al-Sayed, chief financial officer at FII Institute

Al-Sayed noted that a strong riyal symbol is a strategic move because it boosts global confidence in Saudi Arabia’s economy, particularly among foreign investors and financial institutions that rely on strong monetary symbols to assess stability.

He continued: “It also increases the riyal’s visibility in global trade and financial markets, potentially enhancing its role in international contracts and energy deals — an essential factor given Saudi Arabia’s influence in oil and renewable energy markets.”

Al-Sayed added that the symbol strengthens the riyal’s presence in the digital financial ecosystem, emphasizing that digital payments and the potential adoption of cryptocurrency make distinct monetary symbols increasingly important.

“This is not just a branding exercise — it’s a step toward redefining Saudi Arabia’s financial standing in a rapidly changing global economy,” he said.

The Economic Research Forum’s Saidi agreed that a distinct currency symbol had an important role to play in today’s digital and globalized economy.

Saidi pointed out that the digitalization of currencies had transformed the traditional concept of money, with currency symbols now representing both physical and digital forms of legal tender. 

“In the digital economy, currency symbols aren’t just graphic representations but additionally play a pivotal part in easing trades, ensuring financial sovereignty, and affirming financial stability,” he added.

He said that the design of the new symbol highlighted Saudi Arabia’s rich cultural heritage. This not only fosters national pride and cultural affiliation but also strengthens confidence in the riyal as a stable and influential currency on the global stage.

“Domestically, the introduction of a new Saudi riyal symbol could foster a sense of national pride and unity around the currency. This could translate into greater public support for economic reforms and policies aimed at strengthening the riyal,” Saidi added.


Lucid sticks to annual production forecast even as tariff woes hit automakers

Lucid sticks to annual production forecast even as tariff woes hit automakers
Updated 21 sec ago
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Lucid sticks to annual production forecast even as tariff woes hit automakers

Lucid sticks to annual production forecast even as tariff woes hit automakers

LONDON: Lucid stuck to its 2025 production forecast on Tuesday despite the threat of tariffs forcing many automakers to pull back targets, while the luxury electric-vehicle maker reported first-quarter revenue below analysts’ expectations.

Demand for pure battery cars in the US has been slowing as consumers, hit with high interest rates and recession worries, gravitate toward cheaper hybrids.

Lucid — majority-owned by Saudi Arabia’s Public Investment Fund— lowered the prices of its vehicles and offered incentives, including cheaper financing, to entice customers to its Air sedans that start at about $70,000 in the US.

The company said it would produce nearly 20,000 vehicles this year, while Wall Street expects it to manufacture 18,370, according to an average of five analysts by Visible Alpha.

Revenue for the quarter ended March 31 was $235 million, compared with analysts’ average estimate of $248.9 million, data compiled by LSEG showed.

Lucid, which has been focusing on cutting costs, posted an adjusted net loss per share of 20 cents, narrower than the 27-cent loss a year ago.

The company is gearing up to expand its product line with a mid-size car expected to roll out next year, targeting a $50,000 price point, aiming to broaden its customer base and strengthen its position in the competitive EV sector.

Success of Lucid’s recently launched Gravity SUV, along with the midsize, is seen as crucial to its long-term outlook, as the company burns through cash ramping up production.

US automakers are grappling with tariffs imposed by President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles.

Automakers, including Tesla, have said they were reassessing their full-year targets in the face of tariff uncertainty.

Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials.

In September 2023 it launched its first international manufacturing plant in Saudi Arabia.

Located in King Abdullah Economic City, the facility can currently assemble 5,000 Lucid vehicles annually during its first phase.

Once fully operational, it is expected to produce up to 155,000 electric cars per year.  


Oil Updates — crude rises as market eyes US-China trade talks, lower US output

Oil Updates — crude rises as market eyes US-China trade talks, lower US output
Updated 18 min 54 sec ago
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Oil Updates — crude rises as market eyes US-China trade talks, lower US output

Oil Updates — crude rises as market eyes US-China trade talks, lower US output

SINGAPORE: Oil prices rose on Wednesday, holding slightly above recent four-year lows, as investors focused on US-China trade talks and signs of lower US production.

Brent crude futures gained 76 cents a barrel, or 1.22 percent, to $62.91 a barrel by 10:08 a.m. Saudi time, while US West Texas Intermediate crude was up 84 cents, or 1.42 percent, at $59.93 a barrel.

Both benchmarks plunged to a four-year low recently after OPEC+’s decision to speed up output increases, stoking fears of oversupply at a time when US tariffs have increased concerns about demand.

“News that the US and China will start trade talks this weekend has Brent crude trading higher, extending a relief rally in oil,” said commodities strategists at ING on Wednesday.

“Yet while negotiations would help improve sentiment in the oil market, we’ll need to see significant progress on lowering tariffs to improve the demand outlook,” ING added.

Meanwhile, lower oil prices in recent weeks have prompted some US energy firms including Diamondback Energy and Coterra Energy to announce rig reductions, which analysts said should support prices over time by reducing output.

The latest announcements suggested output will weaken in the coming months, said ANZ Bank senior commodity strategist Daniel Hynes. “We warned last month that falling prices and declining drilling activity was raising the risk of US oil output falling.”

Crude stocks fell by 4.5 million barrels in the week ended May 2, market sources said, citing American Petroleum Institute figures on Tuesday.

US government data on stockpiles is due at 5:30 p.m. Saudi time. Analysts polled by Reuters expect, on average, an 800,000 barrel decline in US crude oil stocks for last week.

Prices also drew support from signs of demand improving. Consumers in China increased spending during the May Day celebration and as market participants returned after the five-day holiday.

In Europe, companies are expected to report growth of 0.4 percent in first-quarter earnings, an improvement over the 1.7 percent drop analysts had expected a week ago.

The Federal Reserve is widely expected to leave US interest rates unchanged on Wednesday as tariffs roil the economic outlook.


Closing Bell: Saudi main index closes in green at 11,434 

Closing Bell: Saudi main index closes in green at 11,434 
Updated 06 May 2025
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Closing Bell: Saudi main index closes in green at 11,434 

Closing Bell: Saudi main index closes in green at 11,434 

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for a second straight day, gaining 11.13 points, or 0.10 percent, to close at 11,434.08 on Tuesday. 

The benchmark index recorded a total trading turnover of SR4.51 billion ($1.20 billion), with 83 stocks advancing and 152 declining. 

Saudi Arabia’s parallel market Nomu, however, dropped 190.20 points to close at 27,952.79. 

The MSCI Tadawul Index edged up 0.16 percent to 1,457.72. 

The top performer on the main market was Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, which saw its share price surge 9.87 percent to SR15.58. 

Shares of Bupa Arabia for Cooperative Insurance Co. rose 3.59 percent to SR178.80, while Saudi Ceramic Co. gained 3.17 percent to reach SR29.30. 

Al-Etihad Cooperative Insurance Co. recorded the biggest decline of the day, with its share price slipping 7.69 percent to SR13.92. 

On the announcements front, United Electronics Co., also known as EXTRA, reported a net profit of SR103.44 million for the first quarter of 2025, marking a 10.2 percent increase compared to the same period last year.

In a Tadawul filing, the company attributed the rise to growth in its retail and consumer finance segments. EXTRA’s share price rose 0.11 percent to SR90.90. 

United International Holding Co. posted a net profit of SR57.81 million for the first quarter of 2025, up 10.42 percent year on year. The company said the increase was driven by a 25.3 percent rise in revenues, which reached SR174.65 million, compared to SR139.43 million in the same period last year. Its share price rose 0.59 percent to SR171.40. 

Saudi Printing and Packaging Co. widened its net loss to SR24.4 million in the first quarter of 2025, compared to SR22.62 million a year earlier. The company blamed the deeper loss on lower revenues from its printing and packaging divisions. Shares dropped 2.83 percent to SR12.34. 

Al-Etihad Cooperative Insurance Co. reported a net loss of SR11.91 million for the first quarter, reversing from a net profit of SR2.66 million in the year-earlier period. The insurer cited reduced revenue and a decline in gross earned premiums in the motor and medical segments as key reasons for the swing. Its stock closed down 7.69 percent at SR13.92.

Almoosa Health Co. announced a net profit of SR51.1 million for the first quarter of 2025, a surge of 272.99 percent year on year. The company said the sharp increase was driven by higher patient volumes and improved inpatient occupancy. Shares advanced 3.09 percent to SR167.

Saudi Arabian Mining Co., also known as Ma’aden, reported a net profit of SR1.54 billion for the first quarter of 2025, reflecting a sharp 57.88 percent increase compared to the same period in 2024. 

In a statement to Tadawul, the mining giant attributed the profit growth to higher commodity prices across all its product lines. 

The company’s revenue for the quarter reached SR8.51 billion, marking a 15.82 percent year-on-year rise. 

“We are off to a great start in 2025. We are building on the momentum of last year and continuing our progress across all operations, with strong production results, safety improvements, exploration success, project advancement and portfolio consolidation,” said Robert Wilt, CEO of Ma’aden.  

He added: “Looking ahead our strong financial position and focus on operational excellence positions us well to navigate the current market uncertainty. We will continue to drive value for our shareholders and develop mining as the third pillar of the Saudi economy.”  


Saudi Arabia’s revised 2024 capital investment rises to $355bn, surpassing target by 38%

Saudi Arabia’s revised 2024 capital investment rises to $355bn, surpassing target by 38%
Updated 06 May 2025
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Saudi Arabia’s revised 2024 capital investment rises to $355bn, surpassing target by 38%

Saudi Arabia’s revised 2024 capital investment rises to $355bn, surpassing target by 38%

RIYADH: Saudi Arabia’s gross fixed capital formation reached SR1.33 trillion ($355 billion) in 2024, reflecting a 4.5 percent annual increase, according to updated data released by the Ministry of Investment. 

This figure exceeded the ministry’s original target of SR964 billion by 38 percent, underscoring strong momentum in the Kingdom’s capital investment cycle and signaling continued progress toward Vision 2030 objectives. 

The updated breakdown shows that private sector investments grew by 11 percent annually in 2024 to reach SR1.19 trillion, now accounting for 89.16 percent of total GFCF. 

Meanwhile, government sector investment declined by 29.4 percent to SR144.3 billion, representing just 10.84 percent of total capital formation. The figures highlight the country’s growing reliance on private investment to drive sustainable growth. 

GFCF rose to 29 percent of gross domestic product, surpassing the National Investment Strategy target of 26 percent, signaling growing investor confidence and effective policy implementation, according to the ministry. 

The GFCF metric—an indicator of long-term economic health—tracks net investment in fixed assets across infrastructure, industry, real estate, and tourism. Higher capital formation is typically associated with greater productive capacity and stronger future growth. 

These investment gains come amid a broader push by the Ministry of Investment and the newly established Saudi Investment Promotion Authority to strengthen Saudi Arabia’s position as a global investment hub. 

Through its InvestSaudi platform, the authority has launched wide-ranging initiatives to attract domestic and international capital. 

Efforts include a revamped national investment portal that highlights 15 priority sectors with tailored incentive packages, alongside the rollout of the 2025 Investment Law, which streamlines licensing and regulatory processes across industries. 

Internationally, Minister of Investment Khalid Al-Falih has led roadshows and delegations across Asia, the Americas, and Europe—regions that collectively account for a significant share of the Kingdom’s foreign direct investment inflows. 

Al-Falih has emphasized Asia as a key focus, noting that six of Saudi Arabia’s top 10 FDI source countries are from the region. Domestically, he continues to promote Saudi investment opportunities at major economic forums and sector-specific conferences, positioning the Kingdom’s transformation as a compelling investment narrative. 

Together, these outreach efforts, combined with a growing pipeline of mega-projects such as NEOM, the Red Sea, and Diriyah Gate, are shaping a dynamic investment landscape and reinforcing the Kingdom’s appeal to both regional and global investors.


Saudi Arabia leads 106% rise in MENA IPO proceeds across Q1: EY

Saudi Arabia leads 106% rise in MENA IPO proceeds across Q1: EY
Updated 06 May 2025
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Saudi Arabia leads 106% rise in MENA IPO proceeds across Q1: EY

Saudi Arabia leads 106% rise in MENA IPO proceeds across Q1: EY

RIYADH: Proceeds from initial public offerings across the Middle East and North Africa saw a 106 percent annual rise in the first quarter of 2025, fueled by Saudi Arabia, according to an analysis. 

In its latest report, professional services networking firm EY said the MENA region raised $2.1 billion through 14 IPOs — a year-on-year rise of four —  in the three months to the end of March.

Over the period, 12 of the 14 listings happened in the Kingdom, with five IPOs taking place on the Tadawul benchmark index, and seven occurring on Saudi Arabia’s parallel market, Nomu. 

In recent years, the Kingdom has emerged as a hotspot for listings, fueled by robust economic reforms, diversification efforts away from oil dependence, and growing interest from regional and international investors.

In January, a separate report released by Kamco Invest said that Saudi Arabia led the GCC IPO market in 2024, earning a global ranking of seventh in total IPO proceeds. 

Commenting on activities in the first quarter, Brad Watson, MENA EY-Parthenon leader, said: “This year started on a positive note. MENA capital markets continue to show resilience, with the total IPO value more than doubling compared to the same period last year.” 

He added: “Saudi Arabia continues to dominate the MENA region’s market in terms of activity as well as proceeds. In addition, the IPO pipeline for the rest of the year remains robust across various sectors and multiple countries.” 

According to the latest report, the Kingdom’s Tadawul main market welcomed the largest offering in the MENA region during the first quarter of this year, with Umm Al Qura for Development and Construction Co. raising $523 million, contributing to 22 percent of the overall IPO proceeds. 

This was followed by Almoosa Health Group, which accounted for 19 percent with $450 million, and Derayah Financial with $400 million. 

Overall, the Tadawul main market generated $1.8 billion in total proceeds, while Nomu raised $69 million. 

EY revealed that 28 percent of the IPO funds raised in Saudi Arabia came from the real estate management sector, followed by healthcare equipment and services at 24 percent, financial services at 21 percent, and consumer discretionary and retail at 17 percent. 

In the first quarter of this year, the UAE witnessed one IPO on the Abu Dhabi Securities Exchange, with Alpha Data PJSC raising $163 million. 

Oman’s Muscat Stock Exchange saw one IPO, with Asyad Shipping Co. raising $333 million.

“The increased demand for MENA listings has led to developments in market infrastructure through new products, enhanced governance standards, and a focus on transparency and accountability,” said EY MENA IPO and Transaction Diligence Leader, Gregory Hughes.

He added: “The upward trajectory in the number of IPOs across the region reflects a wider trend of sector diversification, with investors and companies increasingly looking beyond traditional oil-based industries.”

EY further said that the outlook for MENA IPOs for the rest of 2025 remains positive, with 21 companies intending to list on the region’s exchanges across various sectors. 

According to EY, Saudi Arabia remains the frontrunner in this pipeline, with 17 companies already receiving approval from the Kingdom’s Capital Markets Authority. 

In the UAE, three companies have announced their plans to list, and outside the GCC, Egypt has announced one IPO.

“In 2025, we can potentially expect to see an increase in IPOs from the technology sector, including online retail, fintech, foodtech, and classifieds,” said Hughes.