Saudi Arabia has recently reported its smallest trade surplus since November 2020, an indication of shifting economic dynamics as imports have surged dramatically. As revealed by the data published by the country's General Authority for Statistics on Wednesday, the merchandise trade surplus for the lucrative oil-rich kingdom reached 19.29 billion Saudi riyals in July 2024.
This represents a significant decline from the 25.85 billion riyals recorded in July 2023 and 19.64 billion riyals in June 2024. Notably, this figure marks the third consecutive month of decreasing trade surplus, a troubling trend for the nation’s economic outlook. Merchandise exports exhibited a modest increase of 2% year-over-year, totaling 94.52 billion riyals, even amidst a downturn in oil exports, which constitute a dominant 73.1% of the total export volume and decreased by 3.1%.
Following oil, Saudi Arabia's primary export sector was that of chemical products, which made up 25.8% of the overall non-oil exports. When re-exports are included in the calculations, non-oil exports saw a healthy climb of 19% on a yearly basis, showcasing the kingdom's diversification efforts. On the flip side, the kingdom experienced a notable surge in imports, which rose by 12.6% year-over-year, reaching a substantial 75.23 billion riyals.
Analyzing the composition of these imports, the largest purchases came in the form of machinery, electrical equipment, and parts, which accounted for 26.5% of the total imports. Additionally, imports of transportation equipment and components also saw a significant increase. When comparing July to June, there was a rise in exports by 6.5% alongside an 8.8% increase in imports, signaling a dynamic change in trade activity as the kingdom navigates its economic strategy. Interestingly, merchandise exports originating from Saudi Arabia towards China, its largest trading partner, experienced a decline.
In contrast, the volume of goods arriving from China increased notably, reflecting the intricacies of international trade relationships. In July, China represented 13.9% of total exports and a remarkable 25.4% of total imports, reiterating its critical role in Saudi Arabia's trade ecosystem..