The exchange rates for key Middle Eastern currencies, including the Saudi Riyal (SAR), UAE Dirham (AED), and Qatari Rial (QAR), have remained stable in the currency markets, offering a sense of economic stability. As of January 24, 2025, exchange companies quoted the Saudi Riyal at 74.24 for buying and 74.80 for selling, reflecting no change from the previous day. Similarly, the AED was traded at a buying rate of 75.96 and a selling rate of 76.55, maintaining a steady stance. The Qatari Rial followed suit, holding its ground at 76.64 for buying and 77.17 for selling.
This stability in exchange rates comes as a positive sign for Pakistan’s economy, especially for sectors heavily reliant on cross-border trade, remittances, and investments from the Middle East. Currency stability provides confidence to businesses and individuals engaged in transactions involving these currencies, which are vital for Pakistan’s remittance-driven economy.
Looking at the historical performance, the exchange rates for the Saudi Riyal, UAE Dirham, and Qatari Rial have shown slight fluctuations over the last month and year. As of January 24, 2025, the SAR showed no significant change in its buying or selling rates compared to January 23, 2025. Similarly, the AED and QAR exhibited minimal variations in their exchange rates.
The exchange rate data over the past month also indicates a consistent trend, with the SAR, AED, and QAR showing relatively stable values against the Pakistani Rupee (PKR). Over the past year, however, these currencies have experienced slight depreciation against the PKR, with the SAR and AED both showing a 0.6% drop, and the QAR reflecting a marginal 0.15% decrease.
This stability is particularly important as Pakistan’s economic activity is closely tied to remittances sent by the Pakistani diaspora, particularly from the Middle East. The region remains a crucial source of foreign remittances, as millions of Pakistanis live and work across the Gulf countries. As of November 2024, there are approximately 11.5 million Pakistanis residing in the Middle East, making it a key demographic for financial transactions involving currencies like the SAR, AED, and QAR.
In December 2024, remittances from the Middle East were a cornerstone of Pakistan’s foreign exchange reserves, contributing nearly 46% of total remittance inflows. Saudi Arabia remained the leading contributor, with remittances reaching $770.6 million, marking a significant 33.4% year-on-year increase. The UAE closely followed as the second-largest source of remittances, contributing $631 million, which represented a 50.7% surge compared to the previous year.
Given the central role of remittances in supporting Pakistan’s economy, particularly from the Middle East, the stable exchange rates of currencies like the SAR, AED, and QAR are essential for maintaining the flow of funds. These remittances not only support families back home but also contribute to critical sectors like energy imports, which are another vital link between Pakistan and the Middle East.
The continued stability in exchange rates also provides businesses in Pakistan with a more predictable financial environment, which is crucial for both short-term operations and long-term planning. As Pakistan continues to navigate its economic challenges, the consistency in these key exchange rates reflects broader stability in the regional economic environment and helps mitigate the effects of global financial volatility.
In conclusion, the steady exchange rates for the Saudi Riyal, UAE Dirham, and Qatari Rial offer a positive outlook for Pakistan’s economy, especially in light of the robust remittance flows from the Middle East. These stable rates are a signal of confidence for businesses, investors, and households relying on cross-border transactions, and they play an essential role in supporting Pakistan’s ongoing economic recovery.