Saudi Arabia's merchandise imports saw a significant jump in the fourth quarter of last year, reaching their highest quarterly level in nearly nine years, specifically since 2017. According to official data released by the General Authority for Statistics, the value of merchandise imports rose by 5% to approximately SAR 247.7 billion, compared to the same period of the previous year. The data also showed quarter-on-quarter growth, with imports increasing by about SAR 7.9 billion, or 3%, compared to the previous quarter, reflecting the dynamism and continued activity of the Saudi economy.
Historical context and the impact of the Kingdom's Vision 2030
These record figures come amidst the radical economic transformations that Saudi Arabia has been undergoing since the launch of Vision 2030. Historically, the Saudi economy has relied heavily on oil revenues, but with the move towards diversifying income sources, the construction, industrial, and technology sectors have experienced unprecedented growth. This shift directly explains the significant increase in imports, particularly those related to infrastructure and mega-projects such as NEOM, the Red Sea Project, and Qiddiya. Importing advanced machinery and equipment is a cornerstone for implementing these strategic projects, which aim to reshape the Kingdom's economic landscape.
Major imported goods and trading partners
Analyzing the structure of Saudi Arabia's merchandise imports, we find that machinery, electrical equipment, and their parts accounted for the lion's share at 31% of total imports. This was followed by transportation equipment, including vehicles, aircraft, and ships, at 14%. This distribution clearly reflects the Kingdom's focus on developing its industrial and logistical infrastructure.
In terms of trading partners, China maintained its position as the Kingdom's largest supplier, with imports from China reaching approximately SAR 67.5 billion, representing 27% of total imports. The United States came in second with 9%, followed by the United Arab Emirates with 6%, highlighting the diversity of the Kingdom's strategic and trade partnerships at both the international and regional levels.
Trade surplus and export growth
Despite rising imports, the Saudi economy demonstrated exceptional resilience by achieving a substantial trade surplus. The Saudi trade balance recorded a surplus of SAR 52.4 billion during the fourth quarter, representing a remarkable year-on-year growth of 26%. This strong surplus is attributed to the excellent performance of total merchandise exports, which increased by 8% to reach approximately SAR 300.1 billion.
Among the most positive indicators in this context is the significant jump in non-oil exports, which rose by 19% to reach SAR 97.5 billion. Meanwhile, oil exports recorded growth of 3%, reaching SAR 202.6 billion. This double-digit growth confirms the success of economic diversification policies and the reduction of exclusive dependence on oil.
Economic importance and expected impact
This economic performance carries far-reaching implications. Domestically , the surge in capital imports (such as machinery and equipment) is bolstering local industrial capabilities, creating thousands of new jobs for Saudi youth and supporting local content. Regionally , these figures reinforce Saudi Arabia's position as the largest economy in the Middle East and a driver of regional growth, with the robust trade activity positively impacting regional supply chains, particularly with neighboring countries like the UAE. Internationally , this performance sends a strong message to global investors about the stability and attractiveness of the Saudi economy, underscoring the Kingdom's commitment to playing a pivotal role in global trade, not only as an energy supplier but also as a rising global logistics and industrial hub.
