Wales’ Hall and Denmark’s Pedersen are locked together at 10-under-par at the top of the standings after rounds of three under and one under respectively at the Royal Greens Golf and Country Club.

A dazzling display on the front nine saw Hall overtake Pedersen as leader and she was three strokes ahead of the chasing pack after her fifth birdie of the day on the short par three 11th hole.

But the Welsh star stumbled with a couple of bogeys on the back nine as Pedersen fought back to tie, setting up a thrilling finale.

The duo are set to go head to head in the final group alongside Georgia Hall who sits one-shot adrift after a three-under round.

"I’m pretty happy with the result and I’m looking forward to playing with the same group tomorrow again – it’s going to be fun," said Lydia Hall.

Overnight leader Pedersen may not have been at her best, but battled to a round of 71 to keep herself in with a chance of securing victory.

"I am really satisfied to still be in the lead after today," said Pedersen.

"I was a little all over the place, hit some really awful tee shots and it is hard to score when you are not in the fairway.

"I kept grinding out there, I still hit 16 greens in regulation, but they are just not close enough."

A prize fund of $1 million (£760,000/€846,000) is on offer at the tournament which is being held without spectators.

The Saudi Ladies International is scheduled to be followed by the Saudi Ladies Team International from November 17 to 19, which is worth $500,000 (£380,000/€423,000).

The competition is taking place in a COVID-19 secure bubble, with organisers planning to conduct more than 1,500 coronavirus tests, including at least three each for the players, caddies and tournament staff.

The tournament marks the first major women's golf event held in the country.

Saudi Arabia has received widespread international criticism of women's rights in the country.