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.

JEDDAH: Franchises are proving increasingly vital to Saudi Arabia’s economic development, driving employment, government revenue, and cultural transformation in a youthful nation.

Economic experts have told Arab News that the introduction of a law in 2019, followed by expansion of regulations the following year, helped open the Kingdom up to international businesses, as well as strengthened the relationship between franchisors and franchisees.

These moves, together with the economic expansion of Saudi Arabia as part of the Vision 2030 initiative, means the Kingdom now accounts for nearly half of the $30 billion franchise market in the Middle East and Africa, according to Yaseen Ghulam, associate professor of economics at Riyadh-based Al-Yamamah University.

He told Arab News there is consensus among researchers and industry observers that franchise businesses are expected to grow by more than 20 percent per annum for the coming five years and beyond.

“This presents an exceptional opportunity for international brands to enter the Kingdom through franchising, given the fact that European and North American consumer markets are struggling due to economic uncertainty, unemployment, and higher cost of living,” Ghulam said.

He added that franchise registrations in the Kingdom stood at 1,788 by the end of the third quarter of 2024, up from just 185 three years earlier.

With 1,232 entries, the accommodation and food services sector — which includes lodging facilities, dining establishments, and enterprises associated with tourism — led the registrations, the associate professor said.

He added that the wholesale and retail division came in second with 689, and the transport and storage sector with 257. An important element of this development, he noted, is more widespread activity, covering almost all major cities, rather than clustered around one particular region or sector.

“With 647 franchise registrations, Riyadh has led the field, followed by Makkah with 363, and the Eastern Province with 225. According to some estimates, over 1,200 brands are available for franchising, and the franchising sector in Saudi Arabia is offering over 10,000 business opportunities.”

Ghulam noted that more than 600 international and 380 local franchise brands are present in the Kingdom, according to the Small and Medium Enterprises General Authority, known as Monsha’at.

Abdullah Al-Maghlouth, a member of the Saudi Economic Association, told Arab News that government support for SMEs through streamlined processes and a business-friendly environment has helped drive the franchise sector. 

He added that the 2019 law bolstered the Kingdom’s business ecosystem, attracting local and international investments through a clear legal framework.

“The 2020 executive regulations complement this by providing a comprehensive legal environment that facilitates franchise operations and ensures guarantees for all parties involved. This enhances transparency between franchisors and franchisees, making the Saudi market increasingly appealing to investors,” Al-Maghlouth said.

Reflecting on the key factors driving growth in the sector in the Kingdom, Ghulam said Monsha’at’s Franchise Center is “aggressively advancing entrepreneurship” through different programs, such as Tomoh. 

He added that trademarks are now fully protected thanks to the Kingdom’s recent successful implementation of an intellectual property rights plan, with online portals making trademark registration and protection simple and accessible. 

Financial guarantees provided by the Kafalah program are also proving to be a factor in sourcing finance from local investors, Ghulam said, and he noted that the Social Development Bank has played a significant role in advancing franchising in the Kingdom. 

The institution provides financing solutions ranging from SR150,000 ($40,000) to SR4 million with a maximum financing length of 8 years as part of its program to assist new franchise developments and expansion.

“Another significant step in bolstering the franchise community is the founding of the Saudi Franchise Association, the Kingdom’s first specialized association. It has worked to promote the idea and culture of business excellence since its foundation. Additionally, it has organized numerous seminars and workshops and signed various partnerships with colleges and chambers of commerce,” said Ghulam.

Arrangements are also in place in Saudi Arabia to support franchise business and provide consulting. For both domestic and international businesses, Arab Franchise Marketing Corporation provides media platforms, administrative and legal services, and new franchise opportunities. “Through useful solutions, they work with a profit system to grow the franchise market in the MENA area, especially in Saudi Arabia,” said the associate professor.

Highlighting how Saudi Vision 2030 has influenced the development of the franchise market, Ghulam said that the objectives of Saudi Arabia’s Vision 2030 are to invest in globally competitive industries, diversify the country’s economy, boost the private sector, and create jobs.

“Following this, one important economic area that is highlighted in Vision 2030 is franchising. For the success of the Vision, a comprehensive legal, regulatory, financial, and economic set up was needed and has been established for the promotion of the private sector to diversify the economy and reduce dependence on the oil sector,” he said.

The development, he added, of the basic and changed framework has indeed helped the private sector grow in the last few years.

Ghulam said that the franchising industry has greatly benefited from Vision 2030, with support mechanisms, new institutions, and financial aid serving as key enablers.

He added that investment in mega projects, sports events, and facilities has created youth employment, raised real wages, and driven demand for sectors like education, health, dining, beauty, and fitness.

This has attracted international franchisors and local investors, fueling significant growth in the sector.

Ghulam emphasized that Vision 2030 has also shifted the mindset of Saudi youth, encouraging private sector roles and self-employment through franchising, offering substantial returns on investment.

He advised foreign brands seeking to expand into the Saudi franchise market that there is significant potential in sectors such as food, retail, and education, as well as health, fitness, and sports.

“More specifically, customers are quite fond of education franchises, including both domestic and international franchises that focus on training, early childhood care, development centers, and tutoring,” Ghulam said.

He continued that Saudi Arabia’s focus on health-related industries has driven high demand for gyms, nutritious food franchises, and medical services, adding that loosened social regulations, particularly for women, and government support for regional designers have boosted the retail sector, particularly fashion.

Al-Maghlouth agreed that beyond traditional sectors like tourism, hospitality, and food, the Saudi franchise market will continue to expand into emerging fields such as technology, education, and healthcare.

“The supportive legal framework will continue to enhance market transparency and drive growth in economic activities, fostering a sustainable investment environment. This will not only benefit all stakeholders but also solidify Saudi Arabia’s position as a leading investment destination in the region.” he said.