Gold has always been considered a safe-haven asset — a store of value during economic uncertainty, inflation, and currency fluctuations. In Saudi Arabia, investing in gold is both culturally significant and financially wise. Whether you’re looking to preserve wealth, diversify your portfolio, or hedge against inflation, gold remains a top investment choice in the Kingdom.
In this 2025 guide, we’ll walk you through how to buy gold in Saudi Arabia, the best investment methods, trusted sellers, legal considerations, and the pros and cons of each option.
Why Invest in Gold in Saudi Arabia?
With a strong gold market, stable economy, and high purchasing power, the Kingdom offers various options for both local and foreign investors to buy and hold gold securely.
Key Reasons to Invest in Gold:
- Hedge Against Inflation: Gold maintains value even when fiat currencies lose purchasing power.
- Wealth Preservation: A long-standing method to store wealth in times of economic uncertainty.
- Cultural Relevance: Gold is deeply rooted in Saudi culture, especially in jewelry and dowries.
- Portfolio Diversification: Reduces risk by balancing stocks, real estate, and cash investments.
Is It Legal to Buy Gold in Saudi Arabia?
Yes, it is 100% legal and regulated to buy and sell gold in Saudi Arabia. The Saudi Ministry of Commerce oversees precious metals trading, and gold businesses must be licensed.
Foreign residents (expats) and Saudi nationals can both legally buy gold for personal use or investment purposes.
Different Ways to Invest in Gold in Saudi Arabia
There are several methods to invest in gold, each with its own advantages and considerations:
1. Physical Gold (Bullion, Bars, Coins)
This is the most traditional and tangible form of gold investment.
✔️ Pros:
- Full ownership and control
- No third-party risk
- Can be passed down as a physical asset
❌ Cons:
- Requires secure storage
- Subject to theft or loss
- Lower liquidity for large bars
Where to Buy:
- Gold Souqs in Riyadh, Jeddah, Dammam, and Mecca
- Authorized jewelry stores like Malabar Gold, Joyalukkas, and L’azurde
2. Gold Jewelry (As Investment)
Gold jewelry is very popular in Saudi Arabia, and it’s common to buy pieces with the intention to resell later.
✔️ Pros:
- Dual purpose: wearable + investment
- High resale value in gold-rich regions
❌ Cons:
- Making charges and VAT reduce investment value
- Fashion trends may affect resale
Tip: When buying for investment, opt for simple 24K or 22K jewelry with minimal design and lower making charges.
3. Digital Gold
Digital gold allows you to buy and own gold online without handling physical bullion. It’s a growing trend among young investors in Saudi Arabia.
✔️ Pros:
- Easy to buy, sell, and track via mobile apps
- No storage or insurance needed
- Backed by real gold held in vaults
❌ Cons:
- Requires trust in the platform
- Limited providers in KSA
Where to Buy Digital Gold in Saudi Arabia:
- Some fintech apps and international platforms allow KSA residents to buy digital gold.
- Always verify if the platform is Shariah-compliant and offers storage certificates.
4. Gold ETFs and Mutual Funds
Gold Exchange-Traded Funds (ETFs) are a way to invest in gold through the stock market. These funds track the price of gold and are available via licensed brokers.
✔️ Pros:
- No physical storage
- Easily tradable
- Suitable for portfolio diversification
❌ Cons:
- Subject to stock market risks
- Management fees may apply
Popular Gold ETFs Globally:
- SPDR Gold Shares (GLD)
- iShares Gold Trust (IAU)
- Invesco DB Gold Fund
5. Gold Mining Stocks
Another option is investing in shares of companies that mine and produce gold. While not a direct investment in gold, these stocks often rise when gold prices increase.
✔️ Pros:
- High return potential
- Accessible via Saudi stock market or international brokers
❌ Cons:
- Exposure to company risk, not just gold price
How to Buy Physical Gold Step-by-Step
If you’re planning to buy physical gold (bars, coins, or jewelry), here’s a simple step-by-step process:
Step 1: Decide Your Investment Amount
Determine how much of your portfolio you want in gold (typically 5%–15% is recommended).
Step 2: Choose the Type of Gold
For pure investment, bullion bars are best.
Step 3: Visit a Reputable Dealer
Shop around in the gold souqs or visit authorized dealers. Compare:
- Gold rate per gram (daily rate available online)
- Making charges (typically 5%–10%)
- Certifications (24K or 22K, stamped)
Step 4: Verify Purity
Ensure the gold is hallmarked and comes with a certificate of authenticity.
Step 5: Negotiate and Purchase
You can often negotiate the making charges, especially for larger purchases.
How Gold Is Priced in Saudi Arabia
Gold prices in Saudi Arabia are based on the global spot price of gold, usually measured in USD/ounce, and then converted to SAR/gram. The price fluctuates daily.
- Saudi Gold Market websites
- Bank bulletins (e.g., Al Rajhi or NCB)
- Apps like GoldPrice.org or Investing.com
Tax Considerations When Buying Gold
- Value-Added Tax (VAT): Saudi Arabia charges 15% VAT on gold jewelry and coins with decorative elements.
- Investment-grade gold (bullion or bars) may be exempt or have lower VAT if purchased from licensed investment dealers.
Tips for First-Time Gold Investors in Saudi Arabia
- Start Small: Begin with coins or small bars to understand the market before making large investments.
- Buy 24K Gold: It holds more resale value and is considered the purest form.
- Avoid Overpaying: Be cautious of high making charges or unverified dealers.
- Monitor Gold Trends: Track global price trends before buying.
- Plan for Storage: Treat physical gold as a long-term asset and secure it properly.
Final Thoughts
Investing in gold in Saudi Arabia is a practical, legal, and potentially profitable way to diversify your portfolio. With many options—physical gold, ETFs, digital platforms, or jewelry—you can tailor your investment to your financial goals.