Saudi Arabia is further strengthening its economic ties with GCC neighbors, as recent data shows a substantial increase in non-oil trade. This uptick highlights the region’s expanding economic interdependence.

Saudi Arabia’s non-oil exports to its GCC neighbors soared to $2.9 billion in May, reflecting a 29.9% increase from last year, according to the General Authority for Statistics.

While imports from GCC countries saw a modest rise, the overall trade balance with the region improved significantly, reaching $1.25 billion compared to $639 million a year earlier.

The UAE has solidified its position as Saudi Arabia’s primary non-oil trading partner, with trade volumes between the two countries reaching new heights. Non-oil exports from the UAE to Saudi Arabia grew from $1.3 billion in May 2023 to $1.6 billion this year, while imports from the UAE rose from $966 million to $1.2 billion.

Kuwait’s trade balance with Saudi Arabia contracted due to a sharp decline in re-exports, while Qatar saw a slight decrease in its trade surplus with Saudi Arabia, attributed to a reduction in Qatari exports. In contrast, Oman and Bahrain experienced substantial improvements in their trade relations with the kingdom.

Oman significantly narrowed its trade deficit to $63.7 million in May from $236 million the previous year. Conversely, Bahrain saw a dramatic expansion in its trade surplus, which grew to $753.8 million in May from $147.8 million a year earlier.

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