The recent outlook for the AED to SAR exchange rate indicates a stable trading environment, with the exchange rate hovering near 30-day highs at approximately 1.0213. Analysts note that this rate is close to the three-month average, reflecting a constrained movement within a range of 0.7% between 1.0163 and 1.0231.
Recent developments affecting the UAE Dirham include the establishment of a currency swap agreement with Turkey, valued at 18 billion AED. This agreement aims to enhance liquidity and improve financial transactions, potentially supporting the AED’s value. Furthermore, the International Monetary Fund (IMF) has expressed a positive outlook for the UAE economy, projecting a GDP growth of 4.8% for 2025. This favorable economic forecast reinforces the resilience of the AED, suggesting that it could maintain a stable position against regional currencies like the SAR.
On the other hand, factors weighing on the AED include its depreciation against major currencies, particularly in attracting foreign investment in the real estate sector. A significant strategy has been to leverage the weakened dirham to bolster British investment in Dubai's properties, which increased by 62% year-on-year in Q2 2025. This could lead to increased demand for AED, benefiting its exchange rate.
The Saudi Arabian Riyal is pegged to the U.S. dollar, thus maintaining steady value; however, the fixed conversion rate means it is somewhat insulated from market fluctuations. As traders assess the ongoing developments in the UAE, the stability of the AED against the SAR may persist in the short term, with analysts expecting continued tight trading within its current range.
The situation suggests that while the AED holds a stable outlook against the SAR, external geopolitical and economic factors, alongside local fiscal policies, will continue to play a significant role in shaping future exchange rate movements.
