Saudi trade surplus quadruples as oil exports climb

Saudi Arabia’s merchandise trade surplus surged 328.8 per cent year on year in May 2026 as stronger oil exports combined with a steep fall in imports, widening the kingdom’s external trade balance despite weaker non-oil shipments.

The surplus reached SAR26.03 billion, compared with about SAR6.07 billion in May 2025. Total merchandise exports rose 3.9 per cent to SAR93.78 billion, while imports declined 19.5 per cent to SAR67.75 billion.

Oil exports increased 19.5 per cent from a year earlier and accounted for 75.6 per cent of total merchandise exports. Their share had stood at 65.7 per cent in May 2025, highlighting the renewed weight of hydrocarbons in the kingdom’s monthly trade performance.

The rise in oil revenue more than offset a broad contraction in non-oil trade. Non-oil exports, including re-exports, fell 26.1 per cent year on year, reducing their ratio to imports to 33.8 per cent from 36.8 per cent.

National non-oil exports, which exclude re-exported goods, dropped 27.3 per cent. Re-exports declined 24.4 per cent, signalling weaker movement of foreign-made products through Saudi logistics and distribution channels during the month.

The figures present a mixed picture for the kingdom’s economic diversification programme. The sharp improvement in the trade surplus strengthens the external balance and provides additional support for state revenues, but the decline in non-oil shipments underlines the challenge of building export industries capable of delivering sustained growth alongside energy.

Machinery, electrical equipment and parts remained the largest category among non-oil exports, accounting for 22 per cent of the total. The value of shipments in the category fell 31.6 per cent compared with May 2025.

Plastics, rubber and related articles ranked second, representing 17.6 per cent of non-oil exports. Their value declined 28.2 per cent year on year, adding to evidence of weakness across major manufacturing-related export groups.

The fall in re-exports was also led by machinery, electrical equipment and parts, which declined 32.4 per cent. The category accounted for 46.2 per cent of all re-exported goods, making its performance a major factor in the overall contraction.

Imports recorded their sharpest weakness in machinery, electrical equipment and parts, the kingdom’s largest imported product group. The category represented 26.4 per cent of total imports and declined 28 per cent from a year earlier.

Mineral products were the second-largest import category, accounting for 11.9 per cent of the total. Their value increased 65.7 per cent, contrasting with the broader decline in inbound merchandise and pointing to stronger demand for selected energy-related and industrial commodities.

Lower imports contributed substantially to the expansion of the trade surplus. The decline may reflect a combination of shifting project schedules, reduced purchases of machinery and electronics, inventory adjustments and high comparative levels in the previous year.

China remained Saudi Arabia’s largest merchandise export market, receiving 12.3 per cent of total exports. South Korea followed with 9.6 per cent, while the UAE accounted for 7.5 per cent.

India, Japan, Egypt, Malta, Singapore, Poland and Taiwan completed the list of the 10 leading export destinations. Together, the top markets absorbed 63.3 per cent of Saudi merchandise exports, demonstrating the continuing importance of Asian demand.

China was also the largest source of imports, supplying 22 per cent of the kingdom’s total. The US ranked second with 10.7 per cent, followed by Egypt with 8.4 per cent.

The UAE, India, Germany, Switzerland, Italy, France and Russia were among the other leading suppliers. The 10 largest import origins accounted for 69 per cent of inbound merchandise, showing a comparatively concentrated sourcing structure.

Jeddah Islamic Sea Port handled 35.7 per cent of all merchandise imports, retaining its position as the kingdom’s main entry point for overseas goods. King Khalid International Airport in Riyadh accounted for 15.9 per cent, followed by King Abdulaziz International Airport in Jeddah with 11.8 per cent.