Saudi Arabia’s Trade Balance Achieves $10b Surplus in June

Jul 17, 2023

Saudi Arabia’s trade balance achieved a surplus of about SAR 38 billion (about $10 billion) during June of 2023, according to a report of the General Authority for Statistics (GASTAT).

Saudi Arabia’s trade surplus narrowed to SAR 29.5 billion in May 2023, the lowest record in two years, due to a decline in oil exports with the implementation of the voluntary oil output cut by 500,000 barrels per day.

The trade balance increased by 29 percent on a monthly basis between June and May due to the drop in imports of 26 percent compared to May.

The authority stated in its monthly report that the Kingdom’s merchandise exports decreased by 39.7 percent on an annual basis in June, reaching SAR 88.8 billion, while imports fell 17.1 percent to SAR 51.4 billion.

Non-oil exports (including re-exports) adapted to a 45 percent year-on-year shift in June, equaling SAR 16.9 billion compared to 30.7 billion. In tandem, non-oil exports, excluding re-exports, experienced a 46.1 percent decline.

Re-exports declined to 39.8 percent in the same period.

The value of non-oil exports (including re-exports) dropped by SAR 9.9 billion, 36.8 percent, in comparison with May 2023.

GASTAT indicated that oil exports declined by 38.3 percent on an annual basis in June, reaching SAR 71.9 billion compared to 116 billion in June 2022.

Despite this, the share of oil exports of overall exports rose to 81 percent from 79.1 percent in June 2022.

China remains the Kingdom's main partner in merchandise trade, as the value of exports to it amounted to SAR 13.7 billion, 15.5 percent of total exports in June.

It was followed by South Korea and India, with SAR 8.1 billion and SAR 7.7 billion, i.e. 9.2 percent and percent and 8.7, respectively, of total exports.

Japan, the US, the UAE, Egypt, Malaysia, France, and Singapore also featured in the top 10 destinations for Saudi exports.

Exports of Saudi Arabia to those ten countries amounted to SAR 58.5 billion, accounting for 66 percent of total exports.

On the import side, China held the lead, accounting for 19.5 percent or SAR 10 billion in imports in June 2023. It was followed by the US and the UAE, with imports valued at SAR 4.3 billion and SAR 3.6 billion, respectively.

India, Germany, Egypt, Switzerland, Singapore, Italy, and Russia were the other countries that ranked in the top 10 countries for imports.

Imports of Saudi Arabia from those ten countries amounted to SAR 31 billion, accounting for 60.3 percent of total imports.