Saudi Arabia’s Trade Surplus Declines in January 2025
In January 2025, Saudi Arabia’s trade surplus decreased to SAR 24.6 billion, down from SAR 27.9 billion a year prior. Exports rose 2.4% to SAR 97.2 billion, with oil exports declining slightly while non-oil exports increased significantly. Imports grew by 8.3% to SAR 72.6 billion, largely due to machinery and transportation equipment. China remained the leading partner for both exports and imports.
In January 2025, Saudi Arabia’s trade surplus experienced a reduction, recording SAR 24.6 billion compared to SAR 27.9 billion in January of the previous year. This decline was attributed to slower growth in exports relative to imports, despite a notable rise in total exports.
Total exports climbed by 2.4% year-on-year, reaching SAR 97.2 billion, marking the highest level in eight months. However, oil exports experienced a slight decrease of 0.4%, although they still constituted 72.7% of the overall export volume. Non-oil exports, in contrast, showed significant growth, increasing by 10.7%.
China continued to be the foremost destination for Saudi exports, accounting for 15.2% of the total. It was followed by India, which represented 10.9%, and Japan at 10.2%. On the import side, imports experienced an increase of 8.3%, totaling SAR 72.6 billion.
This growth in imports was primarily driven by a dramatic rise in machinery, electrical equipment, and parts, which surged by 27.4% and made up 25.9% of total imports. Additionally, transportation equipment and parts rose by 10.3%, representing 13.8% of total imports.
Among top suppliers, China also dominated Saudi imports, holding a 26.4% share, followed by the United States at 8.3% and the UAE at 5.5%.
In summary, Saudi Arabia’s trade surplus narrowed due to increased imports outpacing export growth, despite a rise in total exports. The primary driver of exports remains the oil sector, although non-oil exports have shown strong growth. China continues to be a crucial trade partner, both for exports and imports, emphasizing its significant role in Saudi Arabia’s trade dynamics.
Original Source: www.tradingview.com
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