Saudi Arabia’s Non-Oil Exports Surge 17.8% in Q2 2025 as Diversification Accelerates

Saudi Arabia’s non-oil exports climbed 17.8 percent in the second quarter of 2025, helping offset weaker oil sales and underscoring the Kingdom’s progress in diversifying its economy, according to data released by the General Authority for Statistics (GASTAT).

The increase was led by a sharp 46.2 percent rise in re-exports, while national non-oil exports excluding re-exports posted steady growth of 5.6 percent. As a result, the share of non-oil exports to imports rose to 37.3 percent in the quarter, compared with 35.8 percent in the same period last year.

The positive momentum in non-oil sectors contrasts with declines in oil trade. Oil exports fell 15.8 percent year on year in the quarter, dragging total merchandise exports down by 7.3 percent. Rising imports, up 13.1 percent, further squeezed the trade surplus, which dropped 56.2 percent compared to Q2 2024. Oil’s share of total exports fell from 74.7 percent to 67.9 percent, reflecting a gradual rebalancing of the export basket.

On a monthly basis, however, the picture was more upbeat. June saw non-oil exports jump 22.1 percent year on year, outpacing imports, which rose just 1.7 percent. This lifted the trade surplus by 10.6 percent, even as oil exports slipped 2.5 percent. Oil’s share of total exports for the month narrowed to 70.2 percent, down from 74.7 percent a year earlier.

Drivers of Growth

Chemical products remained the leading non-oil export category, accounting for nearly a quarter of shipments and rising 5.8 percent in the quarter. Machinery, electrical equipment, and parts recorded the fastest growth, surging 120.8 percent to make up 21.7 percent of non-oil exports. The same category also dominated imports, representing 28.9 percent of inbound goods and growing 28.7 percent, reflecting strong demand for technology and capital goods fueling mega-projects and industrial expansion.

Saudi Arabia’s Industrial Production Index rose 7.9 percent year on year in June, driven by a rebound in manufacturing, further underlining the non-oil momentum.

Trade Partners and Logistics

China remained the Kingdom’s largest trade partner, taking 14.2 percent of exports and supplying 27.4 percent of imports in Q2. The UAE followed as the second-biggest export destination at 10 percent, while India stood at 8.8 percent. On the import side, the US was the second-largest supplier, followed by the UAE.

Logistics hubs continued to play a critical role, with King Abdulaziz Sea Port in Dammam handling 26.2 percent of imports, followed by Jeddah Islamic Sea Port and King Khalid International Airport in Riyadh. The top five ports of entry together processed more than three-quarters of merchandise imports.

Vision 2030 Progress

The latest data comes as Saudi Arabia intensifies efforts under Vision 2030 to diversify away from oil. Earlier this year, GASTAT reported GDP growth of 2.7 percent in the first quarter, with non-oil activity contributing 53.2 percent of total output. Economy and Planning Minister Faisal Al-Ibrahim said at the time that the growing non-oil share marked a significant step toward sustainable growth and resilience.