Saudi Arabia recorded a trade surplus in July, underpinned by merchandise exports of SR84.38 billion ($22.5 billion) and imports of SR70.02 billion ($18.7 billion). Despite an overall contraction in trade figures and persistent reliance on oil revenues, the kingdom maintained strong regional commercial corridors, with Egypt emerging as its sole African trading partner in the top-tier rankings.
The Bottom Line
- Surplus Compression: The kingdom’s July trade surplus fell 25% compared to the same period in 2025, driven by a 17.2% drop in total exports.
- Oil Dominance: Crude and petroleum products expanded their share of total export earnings to 71%, up from 67.4% in July 2025, as non-oil exports declined 26.2%.
- Middle East Corridors: Egypt stood out as the only African nation featured among Saudi Arabia’s top 10 export destinations and import sources, reinforcing Red Sea trade routes.
Managing Lower Export Volumes and Adjusted Margins
Figures released by Saudi Arabia’s General Authority for Statistics (GASTAT) outline a tightening of commercial flows across the Gulf’s largest economy. Merchandise exports fell 17.2% year-on-year to SR84.38 billion ($22.5 billion) in July. On the other side of the ledger, imports declined 15.4% to SR70.02 billion ($18.7 billion).
Here is the math: the resulting merchandise trade surplus. But the balance sheet tells a different story about momentum, as this surplus sits 25% lower than the figures recorded in July 2025. This contraction coincides with strategic adjustments in national logistics, as the kingdom shifts energy transport away from vulnerable Gulf maritime choke points toward its East-West pipeline and Red Sea ports.
Egypt Anchors African Trade Flows
While trade remains heavily anchored in Asian and Gulf markets, the North African commercial corridor maintains a distinct profile. Egypt stands out as the sole African economy to feature among Saudi Arabia’s top 10 destinations for exports and sources of imports during the month.
On the export ledger, Egypt joined global partners including China, the United Arab Emirates, Japan, South Korea, India, the United States, Poland, Malta, and Taiwan. Together, these ten markets absorbed 67.2% of total Saudi merchandise shipments. For inbound goods, Egypt appeared alongside China, the US, Switzerland, Germany, the UAE, India, Italy, France, and Japan, collectively supplying 64.7% of the kingdom’s imports.
| Metric | July Value | Year-on-Year Change |
|---|---|---|
| Total Merchandise Exports | SR84.38 billion ($22.5 billion) | -17.2% |
| Total Imports | SR70.02 billion ($18.7 billion) | -15.4% |
| Oil Share of Total Exports | 71% | +3.6 percentage points (from 67.4%) |
| Non-Oil Exports (incl. Re-exports) | Not specified in total value | -26.2% |
Asia and the Gulf Dominate Export Portfolios
Despite the strategic importance of Red Sea integration with North Africa, Asian economies and GCC neighbors command the vast majority of Saudi export revenue. China remained the kingdom’s primary export market, taking 13.4% of total shipments, followed by the UAE at 10% and Japan at 8.7%. China also led the import segment by supplying 22.7% of goods entering the country, ahead of the US at 8.4% and Switzerland at 6.9%.
Focusing specifically on non-oil trade, the UAE maintained its status as the top destination for Saudi non-oil shipments, receiving goods valued at SR6.61 billion ($1.76 billion). India followed as the second-largest non-oil market at SR3.20 billion ($853 million), with China absorbing SR1.55 billion ($413 million).
Diversification Pressures Meet Petroleum Realities
The latest statistical release highlights the ongoing challenge of weaning export revenue off hydrocarbon dependencies despite the sweeping structural changes pursued under Vision 2030. Oil’s share of total export earnings actually climbed to 71% in July, up from 67.4% twelve months prior.
Simultaneously, non-oil exports experienced broad pullbacks. Aggregate non-oil exports, inclusive of re-exports, fell 26.2%. National non-oil exports dropped 14.8%, while re-exported goods experienced a steeper contraction of 40%. Within the non-oil segment, plastics and rubber products accounted for 19.8% of shipments, while chemical products represented 18.6%. Conversely, import demand was concentrated in heavy industrial categories, with machinery and electrical equipment making up 25.7% of total purchases and transport equipment representing 10.2%.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
