Saudi Arabia’s merchandise exports rise by 11.3% in August to $27.19bn

Saudi Arabia’s overall merchandise exports surged 11.3 percent to reach SR102.4 billion ($27.19 billion) in August compared to July, according to the General Authority for Statistics.

The authority, however, found that the merchandise exports experienced an annual decline of 23.4 percent in August.

The slump can be attributed to reduced oil exports, as the Kingdom collaborated with other members of the Organization of the Petroleum Exporting Countries and its allies, or OPEC+, to reduce oil output to stabilize the market.

In April, OPEC+ decided to reduce oil output by 1.2 million barrels per day. In those recommended cuts, Saudi Arabia pledged to reduce its production by 500,000 bpd.

In June, the Kingdom implemented an additional output cut of 1 million bpd and later extended it until December 2023.

GASTAT revealed that Saudi Arabia’s oil exports decreased 27.1 percent in August 2023 to SR77.9 billion as opposed to the same month in 2022.

Consequently, the share of oil in total exports shrunk to 76.1 percent in August from 79.1 percent in the same month last year.

GASTAT, in the report, further noted that the Kingdom’s non-oil exports, including re-exports, dipped 8.6 percent year on year to SR24.5 billion in August, while it increased by 12.2 percent compared to July.

In August, Saudi Arabia’s most important export items were plastic and rubber products, which accounted for 26 percent of non-oil merchandise exports.

Moreover, China was the Kingdom’s primary trading partner in August, with exports to the world’s second-largest economy amounting to SR13.7 billion or 13.4 percent of the total exports.

China was followed by India and South Korea, with exports from the Kingdom amounting to SR9.1 billion and SR8.5 billion, respectively.

China also led in imports, with the Kingdom importing goods from the Asian giant worth SR11.8 billion in August.

Jeddah Islamic Port remained the largest entry point for goods into the country in August, with a value of SR17.1 billion, constituting 27.7 percent of the overall imports.