Saudi Arabia’s Non-Oil Exports Surge as Diversification Gains Momentum

Saudi Arabia’s non-oil exports jumped 17.8 percent in the second quarter of 2025, providing a buffer against weaker oil sales and underscoring the Kingdom’s accelerating economic diversification, official figures show.

According to data released by the General Authority for Statistics (GASTAT), the rise included a sharp 46.2 percent increase in re-exports, while national non-oil exports excluding re-exports expanded 5.6 percent. The non-oil export boom lifted the ratio of non-oil exports to imports to 37.3 percent, up from 35.8 percent a year earlier.

The gains came despite a 15.8 percent drop in oil exports during the quarter, which pulled total merchandise exports down by 7.3 percent year on year. Combined with a 13.1 percent increase in imports, the merchandise trade surplus shrank 56.2 percent compared with the same period in 2024. Oil’s share of total exports slipped from 74.7 percent to 67.9 percent, reflecting a gradual rebalancing of the Kingdom’s trade basket.

On a monthly basis, however, June presented a stronger picture. Non-oil exports surged 22.1 percent, outpacing a modest 1.7 percent rise in imports. This pushed the trade surplus up 10.6 percent year on year, with overall exports increasing 3.7 percent despite a 2.5 percent fall in oil sales.

Key Growth Drivers

Chemicals remained the largest component of non-oil exports, accounting for 23 percent in the second quarter and posting 5.8 percent growth. Machinery, electrical equipment, and parts registered the fastest expansion, rising 120.8 percent year on year and making up 21.7 percent of non-oil exports. June data showed even stronger momentum in these categories, with machinery exports climbing 168 percent and chemicals up 8.5 percent.

On the import side, machinery and electrical equipment also dominated, representing 28.9 percent of total imports and rising 28.7 percent in the quarter. Transportation equipment followed, up 12.1 percent. In June, machinery imports rose 29 percent while transportation equipment slipped 13.2 percent.

The Kingdom’s growing reliance on machinery and technology-related trade reflects the ongoing industrial expansion, giga-projects, and investment in advanced manufacturing under Vision 2030. GASTAT also reported that Saudi Arabia’s Industrial Production Index climbed 7.9 percent year on year in June, driven by a rebound in manufacturing.

Trading Partners and Gateways

China remained Saudi Arabia’s largest trading partner, taking 14.2 percent of exports and supplying 27.4 percent of imports in the second quarter. The UAE and India followed as key export destinations, while the United States was the second-largest source of imports.

The Kingdom’s ports played a central role in handling trade flows. King Abdulaziz Sea Port in Dammam processed 26.2 percent of imports, followed by Jeddah Islamic Sea Port and King Khalid International Airport. Collectively, the top five ports managed 78.4 percent of all imports.

Earlier this year, GASTAT reported that Saudi Arabia’s economy grew 2.7 percent in the first quarter, powered by non-oil activity, which now accounts for more than half of GDP. Minister of Economy and Planning Faisal Al-Ibrahim hailed the trend as evidence of the Kingdom’s successful shift toward a more diversified economy.