Buying Gold in Saudi Arabia: A Practical Guide for Residents
How Saudi gold shops build their prices, when VAT applies, which karat to choose, and how to sell gold back without losing more than you need to.
● Global market closed: showing the last closing price
What will gold really cost me in a Saudi shop?
Three things: the metal at the current rate (21K is 439.32 SAR per gram today), a making charge per gram that the shop sets, and 15% VAT on both. The metal rate is the same in every shop and every city, so the making charge is where prices really differ.
The karats you will see
- 21K (87.5% gold): the Saudi standard for most jewellery.
- 22K (91.7%): South Asian designs and gold sovereigns.
- 18K (75%): diamond rings and European-style pieces, because it holds stones securely.
- 24K (99.9%): investment bars and coins rather than jewellery.
| Karat | Purity | Per gram (SAR) | Per gram (USD) | 10 grams (SAR) |
|---|---|---|---|---|
| 24K | 99.9% | 502.03 | 133.87 | 5,020.30 |
| 22K | 91.7% | 460.24 | 122.73 | 4,602.40 |
| 21K | 87.5% | 439.32 | 117.15 | 4,393.20 |
| 18K | 75.0% | 376.56 | 100.42 | 3,765.60 |
| 14K | 58.3% | 292.88 | 78.10 | 2,928.80 |
VAT on gold in Saudi Arabia
Jewellery carries 15% VAT on the full invoice, the gold value and the making charge together. Investment gold, meaning bars, wafers and coins of 99% purity or higher that trade on global bullion markets, is zero-rated, so no VAT is added. This is the main reason residents who buy gold to save choose bars or coins over jewellery.
Making charges: the number to negotiate
The making charge pays for design and craftsmanship, and each shop sets its own. Machine-made chains usually carry lower charges than handcrafted or branded pieces. Ask for the charge in riyals per gram before choosing a piece, compare two or three shops, and negotiate: it is the only part of the price the shop controls.
What your invoice should show
Ask for the electronic tax invoice and check that it lists the weight in grams, the karat, the gold value, the making charge and the VAT separately. VAT-registered businesses in Saudi Arabia issue electronic invoices under the ZATCA e-invoicing system (Fatoora), and the invoice is your proof of weight and karat when you sell.
Selling gold back
Shops buy gold at roughly the market rate for its karat, minus their margin, and they do not refund the making charge or the VAT. Before selling, check the rate on this page, get offers per gram from two or three shops, and bring your invoice.
Saving in gold
If your goal is saving rather than wearing, bars and coins are the efficient route: lower premiums than jewellery and no VAT on investment-grade gold. Some Saudi banks also offer gold products, so compare their buying and selling prices with the gram rate before you choose.
Frequently asked questions
Which karat is best to buy in Saudi Arabia?
For jewellery you will wear every day, 21K is the Saudi standard and balances purity with durability. For diamond pieces, 18K holds stones better. For saving, 24K bars and coins avoid VAT and heavy making charges.
Is there VAT on gold in Saudi Arabia?
Yes on jewellery: 15% on the gold value plus the making charge. Investment bars and coins of 99% purity or higher are zero-rated.
Can I negotiate the making charge?
Usually, yes. Each shop sets its own making charge, so asking for a lower rate per gram, or comparing shops, is normal practice.
Is the gold price different in Riyadh and Jeddah?
No. The metal is priced the same across Saudi Arabia, because the rate comes from the global spot price and the fixed peg of 3.75 riyals to the US dollar. Shops differ only in their making charges and buy-back margins.
More gold prices in English
Overview
Gold rate by karat
Gold rate by city
Gold rate by unit
Prices shown are the market value of the metal, updated every few minutes from the global spot price at 3.75 SAR per US dollar, before making charges and VAT. Shops set their own making charges and buy-back margins. This page is for information, not investment advice.