Trade surplus falls in 3Q 2023 on lower oil output

Saudi Arabia’s trade surplus contracted in the third quarter of this year as exports fell and imports rose, forcing the nation’s trade surplus down to SAR 100 bn (a 54% drop), according to figures from the General Authority for Statistics (pdf).

By the numbers:

• Exports were down 25% y-o-y to SAR 300 bn in 3Q 2023
• Imports rose 9.3% to SAR 200 bn

Oil production cuts weigh heavily on exports — and the economy as a whole. Oil exports fell 27.8% y-o-y to SAR 231 bn in 3Q 2023. Meanwhile, non-oil exports fell 13% y-o-y to SAR 68.7 bn. The economy contracted 4.5% y-o-y in 3Q on the back of lower oil activity even as the private sector boom continued.

Non-oil exports accounted for 77% of total exports in 3Q 2023, down from 80% in the same quarter last year. Exports of chemical exports fell 34% y-o-y in 3Q 2023, while plastic and rubber exports declined 18.5% in the same period.

China remains our biggest trade partner:While the value of our exports to China declined 25% y-o-y in 3Q 2023 to SAR 49 bn, Beijing remained our biggest trade partner, taking 16.4% of our total exports, followed by Japan, South Korea, India, UAE, USA, Bahrain, Poland, Egypt, and Taiwan. On the flip side, our imports from China have increased 8.6% y-o-y to SAR 40.6 bn in 3Q 2023, cementing its position as our biggest exporter.