All that glitters may be gold, but is gold a good investment for Saudi Arabia? If so, how exactly does one invest in gold in Saudi Arabia?
Before we begin, it is only proper to acknowledge the cultural significance of precious metals. For centuries, gold has been more than a store of value in the Kingdom; it has been a symbol of wealth, security, and status. From wedding jewellery gifted in ornate designs to gold coins passed through generations, gold is woven into Saudi heritage.
In 2025, the appeal is no longer just cultural; it plays a pivotal role in today’s investment space. Global economies are facing inflation pressures, shifting interest rates, unpredictable markets, and through it all, gold remains a safe haven asset. The better question is not whether to buy gold but rather how to go about it in a way that aligns with investment goals.
In this article, we will explore exactly how to invest in gold in saudi arabia . We’ll look at the local options, such as physical gold, ETFs, and digital platforms, weigh the pros and cons, and compare physical versus digital ownership. We will have a look at how gold can support other assets in your portfolio.
1. How to invest in gold in Saudi Arabia – Local options explained
There are many ways to skin a proverbial cat. When investing in gold in Saudi Arabia, each option has its own advantages, costs, and level of accessibility. So a clear view of the options will help you make an informed decision that works towards and for your goals, risk tolerance, and level of commitment.
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Physical Gold
This is the method most would think about when talking about gold, the gold you see in heist movies, coins, and bullion. It has always been appealing to investors and remains so. The Kingdom sees many investors visiting the souks or high-end retail chains to buy gold jewelry. It is worth noting that you are not just paying for the gold; when you purchase gold jewelry, you are paying for the craftsmanship that goes into creating such a piece, too. If you are looking at gold for investment purposes only, bullion bars or coins would be more cost-effective and are not subject to VAT, provided the gold’s purity is 99.9%. Gold is sold in various weights by authorized dealers and well-established jewellers and should be 24-karat for maximum resale value.
Bank-Related Gold Products
Gold accounts can be found a several Saudi banks. These accounts hold physical gold in your name, stored securely in their vault. The benefit of this type of ownership is that you do not need to worry about security or insurance at the bank takes care of that, but there will likely be additional costs involved. In some cases, you can request to convert your holdings into physical gold.
Gold ETFs
ETFs or Exchange-Traded Funds offer investors exposure to gold’s price movements with the hassle of storing or insuring metal personally. They are investment funds that you can buy and sell on the stock exchange (Tadawul) just like you would shares. ETFs that track the price of gold are available on the Tadawul and through international brokers.
Online and Digital Platforms
Various Fintech platforms are available, which allow investors to buy fractional amounts of gold online, often offering very low entry points. It is for this reason that this is a very popular choice with young investors who are looking for flexibility.
Before you make any purchase, we advise that you check the live gold prices from reputable sources such as the Saudi Central Bank or other accredited dealers. This will ensure that you are getting a fair market rate and the purity you expect.
2. Why gold remains a popular investment in the Kingdom
The need for gold in Saudi Arabia runs deep; it is more than just an asset used to balance a portfolio, but a cultural symbol too. Gold has been a sign of prosperity, security, and prestige. It has importance in weddings, dowries, and family celebrations, with ornate jewellery often handed down through generations. This cultural connection is likely why gold has remained such a trusted store of value.
If we look at gold from a purely economic perspective, it offers something that few other assets can match. That is protection from inflation and currency fluctuations. Gold tends to hold its value when the cost of living rises or global markets become uncertain. For Saudi investors, gold makes a valuable hedge, especially in a country whose economy is so closely linked to global oil prices.
We have seen how in Saudi Arabia, gold serves a cultural purpose and economically is a safe-haven asset. It has a third function, and that is for diversification. Many Saudis have significant exposure to real estate or equities, and gold offers a method of balancing those holdings. Gold has proven itself time and time again by remaining resilient during economic downturns, as it is supported by demand and both central banks and private investors worldwide.
With global issues continuing to influence gold’s position, geopolitical tensions, supply chain issues, and shifting monetary policies, all have investors rushing towards the safety that gold affords. In Saudi Arabia, these modern global forces tied to the cultural significance of the precious metals ensure gold’s popularity in 2025 and in the future.
3. Pros and cons of gold investing in 2025
While the benefits of gold may be rather well known, it is important to recognise that there are limitations. We have created a side-by-side comparison to help you decide whether or not gold will suit your portfolio.
| Pros | Cons |
| High Liquidity: Gold can be sold relatively quickly in Saudi Arabia, either as jewelry or as bullion. | No Passive income: gold does not generate dividends or rent. Returns rely on price appreciation. |
| Tangible asset: Unlike shares or bonds, gold is a physical investment that is not dependent on another party’s solvency. | Short-term volatility: Prices can fluctuate significantly in the short term, even if long-term trends are more stable. |
| Historical value retention: Gold has, for centuries, maintained purchasing power through economic cycles. | Storage and insurance costs: Physical gold must be securely stored and insured, which adds to the overall expense. |
Global markets are navigating inflationary pressures, while gold continues to serve as a defensive asset. As with sports, one can not simply play a defensive game, but it must be part of a larger strategy. The same can be said for gold; it should not be your entire investment plan, but rather used as part of a broader strategy. For those exploring how to invest in gold in Saudi Arabia, considering the pros and cons is a wise choice to determine if gold aligns with your overall financial goals.
4. Physical gold vs digital gold: What’s right for you?
While you can gain exposure to gold’s value through either physical or digital gold, each suits a very different need.
Physical gold
Bars, coins, and jewellery, you can physically hold. The direct ownership factor makes physical gold a popular option for many Saudi’s for both the reassurance and family tradition aspects. Gold is often gifted or passed down between generations, but physical gold will require secure storage and insurance. Jewellery also loses value due to the additional cost of craftsmanship, so it isn’t cost-effective.
Digital Gold
Digital gold can be bought through regulated banks or online platforms, and each unit owned virtually is backed by real gold kept securely in a vault. Digital gold provides the investor convenience, lower entry costs, and quick transactions. You avoid insurance and storage fees. It is important to trade only with licensed traders whom you trust.
So which is better? Well, that depends entirely on you. Do you prefer to keep your assets close to you, then physical gold may be the option. Or would you prefer the more hands-off approach of digital gold, where it is in someone else’s vault? If that sounds more your style, then digital gold would be better suited for you. Regardless of the type of gold you choose to invest in, you will still receive the benefit of gold as a safe-haven asset.
5. How Gamma Assets balances gold investments with real estate
Gold is a great placeholder for wealth, but it is static and doesn’t generate income. Platforms like Gamma Assets offer Saudi and foreign investors real estate-backed assets, which combine stability with rental yields and growth potential. To create a resilient portfolio, adding gold’s protection to property income is a sure-fire way.
You can start investing now from the Gamma Asset Investment Platform
FAQ
Is gold taxed when bought in Saudi Arabia?
In Saudi Arabia, gold jewellery purchases are generally subject to a 15% VAT. However, investment-grade gold, with a purity of 99,5% or higher, often in the form of coins or bars, may be exempt from VAT if certain conditions are met. It is important to always conform to the current regulations before buying.
Where can I buy digital gold in the Kingdom?
You can purchase digital gold through regulated Saudi banks, investment platforms on the Tadawul, and approved fintech apps. It is important that you ensure that the provider offers transparency, physical backing, and secure storage arrangements.
Is gold better than stocks in uncertain markets?
Gold and stocks serve very different purposes. Gold is a safe-haven asset that tends to hold or increase its value during market downturns, while stocks can offer higher returns but come with greater volatility. In uncertain markets, many Saudi investors choose to hold both, using gold for stability and equities for growth.
