Saudi Arabia's merchandise exports surge driven by oil in May 2026

In May 2026, Saudi Arabia's merchandise exports rose by 3.9%, marking a notable increase in trade performance. The trade surplus experienced a remarkable year-on-year rise of 328.8%, reflecting the strength of the country's export activities. This growth was largely driven by oil exports, which accounted for 75.6% of total merchandise exports during the month.

Despite the overall increase in exports, non-oil exports, including re-exports, saw a significant decline of 26.1% year-on-year. The total merchandise exports reached approximately 94 billion Riyals, while imports decreased by 19.5% to about 67.7 billion Riyals. This contrasting performance highlights the challenges faced by non-oil sectors in the current economic landscape.

Saudi Arabia's trade performance in May 2026 is set against a backdrop of fluctuating global oil prices and ongoing efforts to diversify its economy. The country remains heavily reliant on oil exports, which have proven to be a significant driver of its trade surplus. China continues to be the largest trading partner, receiving 12.3% of Saudi exports, emphasizing the importance of international trade relationships.

The decline in non-oil exports raises concerns about the effectiveness of the kingdom's diversification strategies, particularly as the largest non-oil export category—machinery and electrical equipment—also faced a 31.6% decline. This situation calls for a reevaluation of economic policies to foster growth in non-oil sectors, which are crucial for sustainable development.

Looking ahead, it will be essential to monitor trends in global oil prices and their impact on Saudi exports. The significant reliance on oil revenue may prompt policymakers to consider strategies aimed at enhancing non-oil sectors to achieve a more balanced economic framework. Potential policy changes could emerge as the government seeks to address the challenges posed by declining non-oil exports.

As Saudi Arabia navigates its economic landscape, the focus will likely remain on boosting oil production while simultaneously addressing the needs of non-oil industries. Stakeholders should remain vigilant for any developments that could signal shifts in economic strategy or trade dynamics.