Saudi Arabia’s Trade Surplus Shrinks as Oil Exports Decline
Dubai – Saudi Arabia’s trade surplus dropped significantly in April 2025, as oil export revenues fell, despite a rise in non-oil exports and imports, according to GASTAT’s latest trade bulletin.
Total merchandise exports stood at SR90.3 billion ($24.1 billion)—down 10.9% year-on-year. The sharpest decline came from the oil sector, with oil’s share of total exports falling to 68.6%, down from 77.5% a year earlier.
For the lubricants industry, this reflects a slowdown in upstream oil activity, which could impact base oil supply and regional trade flows. With non-oil exports on the rise, market dynamics are shifting, creating new competition and inventory challenges for Gulf-based lubricant suppliers.
Surge in Non-Oil Exports Driven by Chemicals as Imports Rise Sharply
Saudi Arabia’s non-oil exports—including re-exports—jumped 24.6% year-on-year in April 2025 to SR28.4 billion, supported mainly by strong demand for chemical industry products, a key input in lubricants and base oil manufacturing.
At the same time, imports rose 18.3% to SR76.1 billion, narrowing the trade surplus to SR14.2 billion, a sharp 61.7% decline compared to April 2024. The non-oil export-to-import ratio inched up to 37.2%, reflecting continued efforts to diversify the Kingdom’s trade base beyond crude oil.
Machinery, electrical equipment, and parts comprised the largest import category, totaling SR21.1 billion—26% of all imports. These components are critical for industrial production, including lubricant blending and packaging equipment.
China remained Saudi Arabia’s top trading partner, with exports reaching SR11.4 billion (12.6%) and imports from China totaling SR19 billion (25%), underscoring its strategic importance in both raw material and finished product supply chains across the lubricants sector.
Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
