Overview:

Saudi Arabia's merchandise exports rose 3.9 percent year-on-year in May 2026 to approximately 93.78 billion riyals, bolstered by increased petroleum shipments. The trade surplus expanded dramatically by 328.8 percent to 26 billion riyals. Concurrently, the kingdom's economic growth is projected at 2.6 percent for 2026, the highest among Gulf Cooperation Council states, according to rating agency forecasts.

Details:

The General Authority for Statistics confirmed that merchandise exports reached 93.78 billion riyals in May 2026, representing a 3.9 percent increase compared to May 2025. Oil and petroleum products drove the export expansion, reflecting sustained global demand and regional geopolitical factors. The trade surplus—the difference between exports and imports—jumped sharply by 328.8 percent to 26 billion riyals in May, signaling improving external accounts.

Beyond energy sectors, Saudi Arabia is diversifying its economic base. The Ministry of Industry and Mineral Resources processed 1,274 tariff exemption applications for industrial inputs during June 2026, covering 4,662 commodity lines for raw materials and 13,974 lines for machinery. This institutional activity reflects ongoing efforts to support downstream manufacturing and reduce import costs for value-added production.

Housing policy continued delivering results, with the Ministry of Municipalities and Housing reporting that 63,076 Saudi families occupied primary residences in the first half of 2026. An additional 48,631 families benefited from housing support services. Tourism infrastructure also advanced: a 790-kilometer land route connecting Riyadh and Taif is being developed to facilitate travel and boost tourism movement. The nation's road network now extends over 73,000 kilometers, maintaining its global ranking for network connectivity.

Outlook:

Investors are monitoring whether petroleum-driven export momentum can sustain amid global oil market volatility and tariff-related trade tensions initiated by major trading partners. The kingdom's push toward economic diversification through tariff relief for industrial inputs and housing supply expansion will be critical indicators of whether the projected 2.6 percent GDP growth materializes through non-oil sectors.