Amidst the backdrop of global economic challenges, Saudi Arabia has demonstrated resilience in its trade performance, with the Kingdom’s overall merchandise exports remaining steady in July, reaching SR91.3 billion ($24.34 billion). This represents a marginal decrease of only 0.4 percent compared to the previous month, according to official data.
The General Authority for Statistics (GASTAT) released a report indicating that Saudi Arabia’s merchandise exports experienced a decline of 34.9 percent in July compared to the same period in 2022. This decline in merchandise exports was primarily driven by a reduction in oil exports, as Saudi Arabia, along with fellow members of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), implemented production cuts to maintain market stability.
Specifically, the Kingdom’s oil exports witnessed a significant drop of 37.9 percent in July, totaling SR70 billion, compared to the corresponding period in the previous year, as highlighted in the GASTAT report. Consequently, the share of oil in the total export composition decreased from 80.6 percent in July 2022 to 76.8 percent in July this year.
In April, OPEC+ had collectively decided to reduce oil output by 1.2 million barrels per day, with Saudi Arabia committing to a cut of 500,000 barrels per day. Later, in June, the Kingdom went on to implement an additional reduction of 1 million barrels per day, a decision that was subsequently extended until December 2023.
The GASTAT report also revealed that Saudi Arabia’s non-oil exports, including re-exports, experienced a year-on-year decline of 22.1 percent in July, amounting to SR21.1 billion. However, there was a notable increase of 7 percent in non-oil exports compared to the previous month.
Among the crucial export items for Saudi Arabia, products from the chemical and allied industries constituted a substantial portion, accounting for 29.9 percent of the total non-oil exports.
China emerged as the Kingdom’s foremost merchandise trading partner in July, with exports to the world’s second-largest economy reaching SR15.7 billion, representing 17.2 percent of the total exports. Following closely were Japan and South Korea, with total exports valued at SR10.1 billion and SR9.6 billion, respectively.
On the import side, China maintained its lead, with Saudi Arabia importing goods worth SR13.9 billion in July. The United States and the United Arab Emirates (UAE) followed, with imports valued at SR6 billion and SR4.3 billion, respectively.
Jeddah Islamic Port claimed the top position as the primary entry point for goods into the country in July, accounting for a total value of SR20.6 billion, constituting 29.8 percent of the overall imports.
