Saudi Arabia`s Trade Surplus Soars to $6.9 Billion as Oil Exports Rebound

Desk Report: Saudi Arabia has recorded a sharp rise in its trade surplus, signaling renewed strength in the Kingdom`s export earnings as global demand for oil improves. Official figures released by the General Authority for Statistics (GASTAT) show that the country`s merchandise trade surplus reached SR26.03 billion ($6.91 billion) in May 2026, marking a dramatic 328.8 percent increase compared with the same month last year.The strong performance was driven primarily by a rebound in oil exports and a significant decline in imports, highlighting the continued importance of the energy sector to the Saudi economy despite ongoing efforts to diversify under the Kingdom`s Vision 2030 development strategy.According to preliminary government data, Saudi Arabia`s total merchandise exports increased by 3.9 percent year-on-year to SR93.78 billion, while imports fell sharply by 19.5 percent to SR67.75 billion. The widening gap between exports and imports helped push the country`s trade surplus to its highest level in recent months.Oil Regains Its Dominant Role: Oil exports, the backbone of Saudi Arabia`s economy, rose by 19.5 percent from May 2025. As a result, oil accounted for 75.6 percent of the Kingdom`s total exports, up from 65.7 percent a year earlier.The recovery in crude oil exports has strengthened government revenues and improved the country`s external trade balance. Analysts say the latest figures reflect improving conditions in global energy markets after a period of volatility.Non-Oil Exports Face Challenges: Despite the impressive recovery in oil shipments, Saudi Arabia`s non-oil export sector continued to struggle.GASTAT reported that the ratio of non-oil exports, including re-exports, to imports declined to 33.8 percent in May 2026 from 36.8 percent a year earlier. The decline was mainly attributed to a 26.1 percent fall in non-oil exports alongside the decrease in imports.National non-oil exports, excluding re-exports, dropped 27.3 percent, while the value of re-exported goods declined 24.4 percent.The sharpest fall came in machinery, electrical equipment and related parts, where re-exports fell 32.4 percent. This category still represented 46.2 percent of all re-exported goods.Among non-oil exports, machinery and electrical equipment remained the largest category, accounting for 22 percent of total non-oil exports despite a 31.6 percent decline in value. Plastics, rubber and related products ranked second, representing 17.6 percent of non-oil exports after falling 28.2 percent.Import Trends: Machinery, electrical equipment and parts also remained Saudi Arabia`s largest import category, making up 26.4 percent of total imports, although purchases declined by 28 percent compared with May 2025.Mineral products ranked second among imported goods, accounting for 11.9 percent of total imports. Unlike most categories, mineral imports recorded a remarkable 65.7 percent increase over the same period.China Remains Saudi Arabia`s Biggest Trading Partner: China maintained its position as Saudi Arabia`s largest trading partner on both the export and import fronts.It was the destination for 12.3 percent of Saudi Arabia`s total exports in May, followed by South Korea (9.6 percent) and the United Arab Emirates (7.5 percent). Together, the top ten export destinations accounted for 63.3 percent of the Kingdom`s merchandise exports. Other major markets included India, Japan, Egypt, Malta, Singapore, Poland and Taiwan.On the import side, China supplied 22 percent of Saudi Arabia`s total imports, well ahead of the United States (10.7 percent) and Egypt (8.4 percent). Other leading suppliers included the UAE, India, Germany, Switzerland, Italy, France and Russia.Key Trade Gateways: Jeddah Islamic Sea Port continued to serve as Saudi Arabia`s busiest gateway for imported goods, handling 35.7 percent of all merchandise imports during May.It was followed by King Khalid International Airport in Riyadh (15.9 percent), King Abdulaziz International Airport in Jeddah (11.8 percent), King Fahad International Airport in Dammam (5.6 percent) and Al-Batha Port (4.8 percent). Together, these five entry points processed nearly 74 percent of the Kingdom`s imports.For non-oil exports, Jeddah Islamic Sea Port also remained the leading export hub, accounting for 24.4 percent of shipments. Other major export gateways included King Khalid International Airport, King Abdulaziz International Airport, Al-Batha Port and Yanbu Commercial Port.Implications for Banglades: Saudi Arabia`s stronger trade performance carries significance for Bangladesh, which maintains close economic ties with the Kingdom. Saudi Arabia is one of Bangladesh`s largest sources of remittances, employing hundreds of thousands of Bangladeshi workers across various sectors.A healthier Saudi economy, supported by rising oil revenues, could lead to increased infrastructure spending, new investment projects and greater demand for foreign workers, creating additional employment opportunities for Bangladeshis. However, the continued weakness in Saudi Arabia`s non-oil exports suggests that the Kingdom still faces challenges in reducing its dependence on oil—a central objective of its ambitious Vision 2030 reform programme.The latest trade figures underline a familiar reality: while Saudi Arabia is making progress in diversifying its economy, oil continues to be the principal engine of its export earnings and economic growth.