Saudi Arabia committed to riyal–US dollar peg: Finance Minister

Saudi Arabia remains committed to maintaining the riyal’s peg to the US dollar, Finance Minister Mohammed al-Jadaan said on Tuesday.

“Absolutely, we are committed to the US dollar peg. It serves our national and economic interests,” al-Jadaan said on the sidelines of the World Economic Forum in Davos.

Speaking to CNBC, al-Jadaan said the peg helps investors reduce the risk of currency fluctuation. “Because we have a lot of US dollar-based investors investing in riyals and as long as the riyal and US dollar are pegged, that risk is eliminated,” he said.

Al-Jadaan also addressed the broader Saudi-US relationship, suggesting that investment by Riyadh in the United States could exceed previous pledges.

Last year, during a visit to the White House, Crown Prince Mohammed bin Salman said the Kingdom could invest up to one trillion dollars in the United States.

Asked whether that figure was realistic, al-Jadaan said, “I think the trillion is realistic, and possibly even more.”

He added that the US market remains a key growth area for the Kingdom. “It provides investment returns, but also it provides know-how transfer, knowledge transfer that we really need,” al-Jadaan said. “We invest in what matters really for our national interest and economic interest, and we think there are opportunities to continue doing the same.”