Saudi Arabia's Trade Surplus Surges 53.4% in July, Boosting Efforts to Diversify Income Sources

Strategic Insights -

Saudi Arabia's trade surplus surged 53.4% in July, driven by a sharp rise in non-oil exports, reaching a record high of $7 billion. The General Authority for Statistics reported that non-oil exports grew 30.4% year-on-year, with electrical machinery and equipment accounting for 29.7% of total non-oil exports, surging 191% from a year earlier. The growth reflects the success of economic policies in diversifying the export base and strengthening Saudi Arabia's position as a global trade and logistics hub. Financial and economic adviser Hussein al-Attas attributed the growth to re-export activity, supported by modern port and airport infrastructure, streamlined customs procedures, and the kingdom's strategic location.

Key Takeaways:

  • The trade surplus surged 53.4% in July, driven by a sharp rise in non-oil exports, reaching a record high of 26 billion riyals ($7 billion).
  • Non-oil exports grew 30.4% year-on-year, with electrical machinery and equipment accounting for 29.7% of total non-oil exports, surging 191% from a year earlier.
  • Chemicals followed with a 19.6% share of total non-oil exports, edging up 0.9%.
  • On the import side, electrical machinery and equipment made up 29.9% of the total, rising 11.7%, while transport equipment, at 13.2%, fell 9.6%.
  • Re-export activity, particularly in electrical and electronic equipment, had seen exceptional growth, supported by modern port and airport infrastructure, streamlined customs procedures, and the kingdom's strategic location.
  • China remained the top destination for Saudi exports in July, accounting for 14% of the total, followed by the United Arab Emirates at 10.6% and India at 9.4%.
  • The top 10 buyers took 65.7% of exports, while the top 10 countries made up 64.3% of total imports.

Statistics:

  • Non-oil exports grew 30.4% year-on-year, reaching 73.6 billion riyals ($19.7 billion) in July.
  • Electrical machinery and equipment accounted for 29.7% of total non-oil exports, surging 191% from a year earlier.
  • Chemicals followed with a 19.6% share of total non-oil exports, edging up 0.9%.
  • On the import side, electrical machinery and equipment made up 29.9% of the total, rising 11.7%, while transport equipment, at 13.2%, fell 9.6%.
  • China remained the top destination for Saudi exports in July, accounting for 14% of the total.
  • The top 10 buyers took 65.7% of exports, while the top 10 countries made up 64.3% of total imports.

Sources:

  • General Authority for Statistics
  • Asharq Al-Awsat
  • Saudi Research and Publishing Co.
  • SyndiGate Media Inc.