Saudi Arabia's Non-Oil Merchandise Exports To GCC Nations Hit $2.9bn, UAE Largest Trading Partner

Saudi Arabia's non-oil merchandise exports to Gulf Cooperation Council (GCC) countries surged to SR10.99 billion ($2.9 billion) in May, up from SR8.43 billion in the same month last year, according to Arab News citing official figures.

Preliminary data from the General Authority for Statistics indicated that merchandise imports from GCC countries rose slightly from SR6.03 billion to SR6.24 billion during this period.

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As a result, Saudi Arabia's non-oil trade balance with the GCC improved significantly, reaching SR4.74 billion in May compared to SR2.40 billion a year earlier. The UAE remained Saudi Arabia's largest non-oil trading partner within the GCC.

Non-oil exports from the UAE to Saudi Arabia increased from SR4.9 billion in May 2023 to SR6.07 billion this year. Imports from the UAE also saw an uptick, rising from SR3.63 billion to SR4.54 billion, leading to an improved trade balance of SR1.52 billion, up from SR1.26 billion last year.

Kuwait experienced a decline in its trade balance with Saudi Arabia, dropping from SR1.26 billion in May 2023 to SR571.4 million this year. This was largely due to a significant fall in re-exports, which decreased from SR898.2 million to SR147.6 million, alongside a slight reduction in imports from SR158.5 million to SR114.6 million.

Oman saw a substantial improvement in its trade deficit with Saudi Arabia, narrowing it to a deficit of SR239.3 million in May from SR887.1 million the previous year. This positive shift was driven by an increase in Omani exports to Saudi Arabia, which rose to SR384.4 million from SR289.8 million, coupled with a reduction in imports to SR623.7 million from SR1.18 billion.

Bahrain achieved a significant increase in its trade surplus with Saudi Arabia, reaching SR2.83 billion in May, up from SR555.2 million the previous year. This improvement was due to a dramatic rise in re-exports from Bahrain, which surged from SR1.16 billion to SR3.36 billion, while imports decreased from SR922.1 million to SR795.6 million.

In contrast, Qatar's trade balance with Saudi Arabia declined, falling from SR204.9 million in May 2023 to SR56.9 million this year due to a reduction in Qatari exports to Saudi Arabia, which fell to SR223.2 million from SR344.4 million while imports increased slightly to SR166.3 million from SR139.4 million.