Riyadh – Saudi Arabia experienced a considerable increase in its non-oil trade surplus with Gulf Cooperation Council (GCC) member states during the second quarter of 2025. New data released by the General Authority for Statistics (GASTAT) indicates a remarkable 119 percent year-over-year surge, reaching a total of SR11.9 billion (approximately $3.2 billion). This growth underscores the Kingdom’s strengthening economic ties within the region and its diversifying economy.
Meaningful Gains in Trade Volume
Table of Contents
- 1. Meaningful Gains in Trade Volume
- 2. Breakdown of Trade components
- 3. UAE Dominates GCC Trade
- 4. Looking Ahead: GCC Trade Dynamics
- 5. Frequently Asked Questions about Saudi-GCC Trade
- 6. What specific sectors within Saudi Arabia’s non-oil exports experienced the most significant growth in trade with GCC countries during Q2 2025?
- 7. Saudi Arabia’s non-Oil Trade Surplus with GCC Doubles to $3.2 Billion in Q2: A Diversification Success Story
- 8. The Surge in Non-Oil Trade: Key Figures & Trends
- 9. Driving Forces Behind the Growth
- 10. Sector-Specific Analysis: Where is the Growth Happening?
- 11. Implications for Regional Economic Stability & Investment
- 12. Case Study: SABIC’s Role in Petrochemical Exports
- 13. Practical Tips for Businesses Looking to capitalize on GCC Trade
The reported surplus marks an increase of roughly SR6.5 billion ($1.7 billion) compared to the SR5.4 billion ($1.4 billion) recorded in the same period in 2024. Preliminary data from the International Trade Bulletin reveals that overall non-oil trade between Saudi Arabia and other GCC nations-including re-exports-reached SR54.3 billion ($14.5 billion) in Q2 2025. This represents a notable 25.2 percent increase from the SR43.4 billion ($11.6 billion) observed in the second quarter of the previous year.
Breakdown of Trade components
A closer examination reveals key components driving this growth. Total non-oil exports, encompassing re-exports, amounted to SR33.1 billion ($8.8 billion), a substantial 35.7 percent increase from SR24.4 billion ($6.5 billion) in the prior-year period. National non-oil exports rose by 4.3 percent, reaching SR8.9 billion ($2.4 billion) against SR8.5 billion ($2.3 billion) in Q2 2024. Re-exports experienced an even more dramatic surge, climbing 52.4 percent to SR24.3 billion ($6.5 billion) compared to SR15.9 billion ($4.2 billion) previously.
Imports from GCC countries also demonstrated growth, increasing by 11.7 percent to SR21.2 billion ($5.7 billion) from SR18.9 billion ($5 billion) in the corresponding quarter of 2024.
| Trade Category | Q2 2025 (SR Billion) | Q2 2024 (SR Billion) | Year-over-Year Change (%) |
|---|---|---|---|
| Total Non-Oil Exports (including re-exports) | 33.1 | 24.4 | 35.7 |
| National Non-Oil Exports | 8.9 | 8.5 | 4.3 |
| Re-exports | 24.3 | 15.9 | 52.4 |
| Imports from GCC | 21.2 | 18.9 | 11.7 |
UAE Dominates GCC Trade
The United Arab Emirates (UAE) continues to be Saudi Arabia’s primary non-oil trading partner within the GCC bloc. Bilateral trade between the two nations reached SR40.4 billion ($10.8 billion), constituting 74.3 percent of the total trade volume. Oman secured the second position with SR5.3 billion ($1.4 billion), representing 9.7 percent of the trade. Bahrain followed closely with SR4.7 billion ($1.3 billion), or 8.7 percent, while Kuwait recorded SR2.4 billion ($640 million), accounting for 4.4 percent.Qatar rounded out the list, registering SR1.6 billion ($426 million), or 2.9 percent.
Analysts attribute this positive trend to Saudi Arabia’s expanding re-export capabilities and its increasing integration into regional supply chains,fueled by deepened economic cooperation among GCC nations. Saudi Exports is working to diversify the Kingdom’s exports beyond oil.
Did You Know? Saudi Arabia’s “vision 2030” plan prioritizes diversification and strengthening regional economic partnerships, a key driver of these trade increases.
Pro Tip: Businesses looking to expand within the GCC region should closely monitor these trade trends and leverage the growing opportunities within Saudi Arabia’s expanding market.
What other strategies could GCC nations implement to further boost non-oil trade? How will these trade figures impact the broader regional economic outlook?
Looking Ahead: GCC Trade Dynamics
The sustained growth in non-oil trade between Saudi Arabia and other GCC countries highlights a broader trend toward economic diversification and regional integration. these dynamics are particularly vital as global economic uncertainties persist. The GCC’s commitment to fostering a more interconnected and resilient economic system is expected to continue driving trade expansion in the coming years. Factors such as infrastructure development, regulatory harmonization, and increased investment in non-oil sectors will be crucial in sustaining this momentum.
Frequently Asked Questions about Saudi-GCC Trade
- What is driving the increase in non-oil trade between Saudi arabia and the GCC?
Increased regional economic cooperation, diversification efforts under Saudi Vision 2030, and a growing re-export market are key factors.
- Which GCC country is Saudi Arabia’s largest non-oil trading partner?
The united Arab Emirates is currently Saudi Arabia’s largest non-oil trading partner within the GCC.
- What is the meaning of re-exports in Saudi Arabia’s trade surplus?
Re-exports contribute considerably to Saudi Arabia’s trade surplus, indicating its role as a key logistics and distribution hub in the region.
- How does this trade surplus benefit the Saudi economy?
The surplus strengthens Saudi Arabia’s financial position,supports economic diversification,and creates opportunities for investment and job creation.
- What is the outlook for future trade growth between Saudi Arabia and the GCC?
The outlook is positive, with continued commitment to economic integration and diversification expected to drive further trade expansion.
Share yoru thoughts on this developing story. What impact do you foresee this increased trade having on the region’s future economic landscape? Comment below!
What specific sectors within Saudi Arabia’s non-oil exports experienced the most significant growth in trade with GCC countries during Q2 2025?
Saudi Arabia’s non-Oil Trade Surplus with GCC Doubles to $3.2 Billion in Q2: A Diversification Success Story
The Surge in Non-Oil Trade: Key Figures & Trends
Saudi arabia’s non-oil trade surplus with fellow Gulf Cooperation council (GCC) nations reached $3.2 billion in the second quarter of 2025, a significant doubling from the same period last year. This impressive growth underscores the Kingdom’s accelerating economic diversification efforts and deepening regional economic integration. The data,released by the Saudi General Authority for Statistics,reveals a substantial shift away from reliance on crude oil exports.
Here’s a breakdown of the key trends:
* Overall Trade Volume: Total trade exchange between Saudi Arabia and GCC countries increased by 18% in Q2 2025 compared to Q2 2024.
* Non-Oil Exports: Non-oil exports to GCC nations experienced a 35% surge, driven primarily by petrochemicals, plastics, building materials, and manufactured goods.
* Key GCC Partners: The UAE and Kuwait remain Saudi Arabia’s largest GCC trading partners, accounting for over 60% of the non-oil trade surplus. Qatar and Oman are showing increasing importance.
* Imports: While exports are driving the surplus, imports from GCC countries also saw a moderate increase, indicating a strengthening of supply chains within the region.
Driving Forces Behind the Growth
several factors are contributing to this positive trend in saudi-GCC trade. The most prominent include:
- Vision 2030 Implementation: Saudi Arabia’s Vision 2030 plan is actively promoting economic diversification, with a strong focus on developing non-oil sectors. This includes incentivizing local manufacturing and exports.
- Industrial Expansion: Significant investments in petrochemicals,manufacturing,and construction materials are boosting Saudi Arabia’s export capacity. The Kingdom is becoming a regional hub for these industries.
- Regional Integration Initiatives: Initiatives like the GCC Customs Union and ongoing efforts to streamline trade procedures are reducing barriers to trade and fostering closer economic ties.
- Increased Intra-GCC Investment: Growing intra-GCC foreign direct investment (FDI) is fueling economic activity and trade flows. Saudi Arabia is both a recipient and a source of investment within the region.
- Post-COVID Economic Recovery: the rebound in global demand following the COVID-19 pandemic has also played a role,boosting trade volumes across the GCC.
Sector-Specific Analysis: Where is the Growth Happening?
The non-oil trade surplus isn’t uniform across all sectors.Certain industries are leading the charge:
* Petrochemicals: Saudi Arabia’s petrochemical industry, a cornerstone of its diversification strategy, is experiencing robust demand from GCC countries. Increased production capacity and competitive pricing are key drivers.
* Plastics & Polymers: Demand for plastics and polymers is rising across the GCC, fueled by construction projects and consumer goods manufacturing. Saudi producers are well-positioned to capitalize on this growth.
* Building materials: Infrastructure progress projects throughout the GCC are driving demand for Saudi-made building materials, including cement, steel, and aluminum.
* Food & Beverages: Saudi Arabia is increasing its food and beverage exports to GCC countries, driven by investments in agricultural technology and food processing facilities.
* Machinery & Equipment: The Kingdom’s growing manufacturing sector is also exporting machinery and equipment to other GCC nations.
Implications for Regional Economic Stability & Investment
This doubling of the non-oil trade surplus has significant implications for the broader GCC region:
* Reduced Economic Vulnerability: Diversification reduces the GCC’s collective dependence on oil revenues,making the region more resilient to fluctuations in global oil prices.
* Enhanced Regional Supply Chains: Stronger intra-GCC trade fosters the development of more robust and integrated regional supply chains.
* Increased Investment Opportunities: The growth in non-oil trade creates new investment opportunities in sectors like manufacturing, logistics, and infrastructure.
* Job Creation: Expanding non-oil sectors are generating new employment opportunities for GCC citizens.
* Strengthened Economic Cooperation: Increased economic interdependence encourages greater political and economic cooperation among GCC member states.
Case Study: SABIC’s Role in Petrochemical Exports
Saudi Basic Industries Corporation (SABIC), a global leader in petrochemicals, exemplifies the success of Saudi Arabia’s diversification strategy. SABIC’s exports to GCC countries have increased significantly in recent years, driven by strong demand for its products in downstream industries. the company’s investments in research and development, coupled with its strategic partnerships with regional players, have solidified its position as a key supplier to the GCC market. This demonstrates the power of focused industrial development in driving non-oil trade growth.
Practical Tips for Businesses Looking to capitalize on GCC Trade
For businesses seeking to benefit from the growing Saudi-GCC trade relationship, consider these practical tips:
- Market Research: Conduct thorough market research to identify specific opportunities in GCC markets.
- Local Partnerships: Establish partnerships with local distributors and agents to navigate regulatory requirements and build relationships.
- Quality standards: Ensure your products meet
