Riyadh, Saudi Arabia — Saudi non‑oil exports rose 6% year‑on‑year in May 2025, reaching SAR 31.12 billion, even as oil shipments fell 21.8% to SAR 59.33 billion. As a result, total merchandise exports dropped 14% to SAR 90.45 billion.
Non-oil exports (excluding re-exports) slipped 1.8% to SAR 18.77 billion. Conversely, re‑exports surged 20.5%. Meanwhile, imports climbed 7.8% to SAR 80.93 billion, shrinking the trade surplus by 68.4% to SAR 9.52 billion.
The non‑oil‑exports‑to‑imports ratio edged down to 38.5% from 39.1% in May 2024, due to faster import growth.
Sector Snapshot
- Machinery and electricals led non‑oil exports, accounting for 23.7% and nearly doubling (+99.8%) compared to May 2024.
- Chemicals made up 22.8% of non‑oil exports, rising modestly by 0.4%.
- On the import side, machinery and electrical goods dominated (29.7%), growing 23%. Transport equipment imports fell 9.2%, making up 11.4%.
Trade Balance Shift
The sharp drop in oil exports drove the surplus contraction. Oil’s share of total exports fell from 72.1% to 65.6%.
Top Trade Partners
- Exports: China led at 14.0%, followed by the UAE (11.2%), India (8.9%), South Korea, Japan, the US, Egypt, Bahrain, Malta, and Malaysia (totaling 64.4%).
- Imports: China again led at 28.9%, with the US (7.5%), UAE (6.3%), India, Japan, Germany, Italy, Switzerland, Egypt, and France making up 67.6%.
Implications for Vision 2030
The 6% rise in non‑oil exports shows progress toward Vision 2030’s goal of economic diversification. However, the decline in national non‑oil growth and rising imports reveal structural challenges. The strength in machinery and chemicals signals industrial momentum, yet import demand highlights competitiveness issues.
THE SAUDI STANDARD’S VIEW: Non‑Oil Export Growth Validates Diversification Amid Energy Price Cycles
Saudi non‑oil exports’ 6% year‑on‑year increase to SAR 31.12 billion in May 2025 confirms the resilience of the Kingdom’s economic diversification efforts, even while oil export values dropped sharply. This underscores the strategic direction of Vision 2030 to reduce hydrocarbon dependence and deepen global trade integration.
- Resilience Through Re‑Exports and Sector Strength: Although national non‑oil exports dipped slightly, the 20.5% surge in re‑exports highlights growing logistics and free-zone capacities. Moreover, machinery and electrical exports—up nearly 100%—are emerging as central pillars of trade competitiveness.
- Imports Reflect Economic Dynamism: A 7.8% rise in imports signals strong domestic demand and industrial activity. The significant growth in machinery and equipment imports also points to increased investment in infrastructure and technology, which is essential for long-term transformation.
- Strategic Trade Corridors Hold Firm: China’s leading role in exports and imports illustrates Saudi Arabia’s strong eastward trade orientation. Meanwhile, ongoing trade with India, the UAE, and Western economies reflects a balanced geopolitical trade posture.
- Oil Revenue Volatility Reframed: The steeper drop in oil exports versus stable total exports shows how the economy is becoming less sensitive to energy price cycles—the increasing share of non-oil trade further cushions against commodity fluctuations.
- Policy Alignment With Vision 2030: These trade trends affirm the impact of policies promoting trade liberalization, industrial localization, and export growth. Expanded value-added non-oil exports align directly with Vision 2030’s industrial and logistics objectives.
Overall, Saudi Arabia’s export performance in May 2025 demonstrates strong resilience. As non‑oil sectors increasingly drive trade, the Kingdom moves closer to its goal of becoming a diversified global trade hub built on competitiveness, infrastructure, and strategic policy.
