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RIYADH: ����ֱ��’s non-oil exports rose 5.5 percent year on year in August to SR29.28 billion ($7.81 billion), supported by a sharp increase in re-exports even as shipments of locally produced goods softened, official data showed. 

According to the General Authority for Statistics, machinery, electrical equipment, and parts led the non-oil export basket, accounting for 25.4 percent of total shipments and recording a 79.8 percent annual increase.  

Chemical products ranked second with a 22.7 percent share, though exports in that category slipped 7.4 percent from a year earlier. 

Bolstering non-oil exports and diversifying economic activity remain central goals of ����ֱ��’s Vision 2030 agenda, as the Kingdom continues reducing its reliance on crude revenues. 

Affirming this trend, a report by S&P Global said ����ֱ��’s Purchasing Managers’ Index rose to 57.8 in August — the strongest reading since March. 

In its latest report, GASTAT stated: “Non-oil exports, including re-exports, recorded an increase of 5.5 percent compared to August 2024, while national non-oil exports, excluding re-exports, decreased by 6.7 percent. Moreover, the value of re-exported goods increased by 32.9 percent during the same period.”   

The authority added that ����ֱ��’s non-oil exports declined by 14 percent in August compared to July. 

Top destinations  

The UAE was the top destination for ����ֱ��’s non-oil shipments in August, receiving goods valued at SR9.87 billion. 

India ranked second with SR3.70 billion, followed by China at SR1.96 billion, Kuwait at SR1.03 billion, and Egypt at SR813 million. 

Turkiye received goods worth SR694 million, while Jordan and Singapore imported SR670.8 million and SR592.5 million, respectively. 

In a separate report released in September, GASTAT said ����ֱ��’s real gross domestic product expanded by 3.9 percent in the second quarter, fueled by robust non-oil activity that has now grown for 18 consecutive quarters. 

The authority noted that non-oil activities rose 4.6 percent year on year in the April–June period, underscoring the progress of Vision 2030 reforms aimed at diversifying the economy away from oil. 

Export gateways  

Jeddah Islamic Sea Port handled the largest volume of non-oil exports in August, valued at SR3.40 billion, followed by King Fahad Industrial Sea Port at SR3.21 billion and Ras Al Khair Sea Port at SR2.14 billion. 

Jubail Sea Port processed SR1.99 billion in non-oil shipments, while King Abdulaziz Sea Port in Dammam handled SR1.81 billion. 

By land, Al Bat’ha Port was the main exit point with SR2.13 billion in non-oil exports, followed by Al-Hadithah and Al-Wadiah ports at SR903.9 million and SR512 million, respectively. 

Among airports, King Abdulaziz International Airport processed outbound goods valued at SR5.19 billion, followed by King Khalid International Airport at SR2.96 billion and King Fahad International Airport at SR377 million. 

Merchandise exports 

����ֱ��’s total merchandise exports reached SR99.09 billion in August, up 6.6 percent year on year, driven by a 7 percent increase in oil exports, GASTAT said. 

“Consequently, the percentage of oil exports out of total exports increased from 70.2 percent in August 2024 to 70.5 percent in August 2025,” the authority added. 

Asia remained the largest market for Saudi exports in August, accounting for SR72.43 billion, followed by Europe at SR12.54 billion, Africa at SR7.27 billion, and the Americas at SR6.75 billion. 

China was the top destination for ����ֱ��’s overall merchandise exports at SR16.02 billion, followed by the UAE with SR11.04 billion, India with SR9.15 billion, South Korea with SR8.54 billion, and Japan with SR6.71 billion. 

In July, exports to the US totaled SR4.11 billion, while Egypt and Poland received shipments valued at SR3.55 billion and SR2.87 billion, respectively. 

����ֱ��’s imports rose 7.4 percent year on year to SR74.85 billion in August, while the merchandise trade surplus increased by 4.1 percent over the same period. 

Machinery, mechanical, and electrical equipment led imports, totaling SR22.30 billion, followed by transport parts at SR10.59 billion and chemical products at SR6.61 billion. 

Base metal imports amounted to SR6.02 billion, while inbound shipments of mineral products reached SR4.14 billion. 

By region, Asia remained the Kingdom’s largest source of imports, contributing SR42.30 billion in August, followed by Europe at SR20.13 billion and the Americas at SR8.37 billion. 

Africa supplied SR3.35 billion worth of goods, while imports from Oceania totaled SR696.6 million. 

����ֱ�� imported SR19.75 billion worth of goods from China, followed by the US at SR5.82 billion, the UAE at SR4.04 billion, and Germany at SR3.82 billion. 

India’s exports to ����ֱ�� totaled SR3.20 billion, while Japan and Italy shipped SR3.16 billion and SR2.48 billion, respectively. 

Sea routes dominated imports, accounting for SR42.89 billion, while air and land routes handled SR23.75 billion and SR8.20 billion, respectively. 

King Abdulaziz Sea Port in Dammam was the main entry point with SR19.14 billion in imports, followed by Jeddah Islamic Sea Port at SR16.40 billion, Ras Tanura at SR1.63 billion, and King Abdullah Sea Port at SR1.02 billion. 

By air, King Khalid International Airport received SR9.87 billion in imports, followed by King Abdulaziz International Airport at SR9.06 billion and King Fahad International Airport at SR4.31 billion. 

Through land, Al-Batha Port processed SR3.46 billion worth of goods, while Riyadh Dry Port and King Fahad Bridge handled SR2.02 billion and SR882.3 million, respectively. 

JEDDAH: ����ֱ��’s US Treasury holdings are more than a line item in a monthly report — they are a barometer of the Kingdom’s financial strategy, a measure of its confidence in the global economic order, and a cornerstone of its economic diversification efforts.

Commenting on how ����ֱ�� decides how much to invest in US Treasury securities at any given time, and what strategic goals it aims to achieve through these holdings, Qaiser Noor, executive director and board member at 1957 Ventures, JS Bank, Tiqmo and Owais Capital, described the Kingdom’s approach as disciplined and hierarchical.

“����ֱ�� calibrates US Treasury allocations primarily to safeguard the riyal’s dollar peg and ensure ample, immediate US dollar liquidity for external payments. Reserve management follows the classic hierarchy of objectives, safety, liquidity, then return, so Treasuries anchor the liquid ‘core’ while duration is adjusted tactically with market conditions,” he told Arab News.

He added: “Oil revenue cycles, fiscal outflows, and expected foreign exchange liquidity needs are key inputs; the aim is to preserve capital and shock-absorb balance-of-payments volatility, along with optimizing yield.”

Central bank view

Nasser Saidi, founder and president of Nasser Saidi & Associates, a specialized economic and financial advisory services company, echoed this perspective, emphasizing that the decision is “primarily taken by the Saudi Central Bank, keeping in mind its strategic goals of currency stability, directed partly by the need to hold US dollar as part of international reserves to maintain the dollar peg and liquidity and safety.” For Saidi, who served as Lebanon’s minister of economy and trade and minister of industry from 1998 to 2000, US Treasuries are a critical pillar of stability, as “holding treasuries allows ����ֱ�� to meet its international payment obligations — finance imports, service external debt, portfolio, and capital flows — provide a buffer against oil revenue shocks, while also generating a steady, low-risk stream of income.” 

The aim is to preserve capital and shock-absorb balance-of-payments volatility, along with optimizing yield.

Qaiser Noor, executive director and board member at 1957 Ventures, JS Bank, Tiqmo and Owais Capital

Holdings fluctuations

In the 12 months to July, ����ֱ��’s US Treasury holdings saw notable fluctuations, reflecting active reserve management. 

Holdings rose from $142.7 billion in July 2024 to a peak of $143.9 billion two months later, then fell to a low of $126.4 billion in February, before recovering to $133.8 billion in April. They dipped again to $127.7 billion in May and rose to $131.7 billion by July, underscoring Riyadh’s strategic balancing of liquidity, yield, and diversification.

The pattern of Saudi holdings mirrors strategic adjustments rather than anything else, Noor explained, noting that monthly changes mainly reflect liquidity management and market positioning. 

“Increases can indicate oil inflows being parked in ultra-safe US dollar paper or duration adds when yields are attractive; declines can reflect funding domestic spending, transfers to other public entities, or rotation within the US dollar curve/custodians,” he explained.

He noted that US Treasury data show Saudi holdings fluctuating between $120 billion to $140 billion in recent months, underscoring “active but disciplined management.”

Drivers of change

Saidi pointed to multiple drivers behind these shifts, noting that the rise until September 2024 reflected the Saudi Central Bank, known as SAMA, capitalizing on higher US interest rates, supported by strong oil revenues from the preceding period.

He added that the drop to a six-year low of $108 billion in June 2023 followed a significant transfer of funds to the Public Investment Fund, and the subsequent rise reflected Aramco dividend transfers, which “would have some impact on inflows of US dollar into the central bank in 2024.”

Speaking to Arab News, Saidi explained that the decline to $126.4 billion by February “is likely a combination of factors – expectations that interest rates would stay higher for longer plus a soft landing in the US, portfolio rebalancing away toward higher-yield investments in the backdrop of lower oil production and prices, SAMA withdrawing to meet domestic spending needs / managing liquidity in the banking system,” adding that after a return to stabilization was seen.

For Saidi, the pattern underscores that “SAMA acts as both the traditional central bank, and also actively manages its reserve holdings to accommodate funding needs as per Vision 2030, mainly via the PIF.”

Balancing safety and return

A key question for Saudi reserve managers is how to reconcile the safety of US debt with the need for higher returns and diversification.

Noor stressed the use of a layered approach, noting that the country “typically separates a highly liquid US dollar layer (Treasuries/bills) from a return-seeking layer with measured duration and complements this with other high-grade supranationals/agency papers and selective non-US dollar assets, hedged as needed.”

He explained that the balance shifts tactically based on yield levels, volatility, and stress-testing of foreign exchange needs, adding that the guiding principle is to ensure buffers perform in crises first, with incremental returns pursued only when they do not compromise the immediate usability of reserves.

SAMA and PIF

The interplay between SAMA and the PIF is central to understanding the bigger picture. Saidi explained that their mandates are different as SAMA’s role is to provide currency, banking, and financial market stability, dictating conservative policies.

Meanwhile, the PIF’s mandate drives a more aggressive investment approach, deploying capital in medium- and long-term domestic projects and international assets to boost economic diversification, revenue, and risk reduction, shifting away from oil and gas toward new technologies. 

Holding treasuries provides a buffer against oil revenue shocks while also generating a steady, low-risk stream of income.

Nasser Saidi, founder and president of Nasser Saidi & Associates

He added: “There have also been capital transfers between the two entities: SAMA has reallocated funds into the PIF for long-term strategic investments (with an aim of diversifying away from oil; sometimes into higher-risk, higher-return investments.”

Noor described the relationship similarly, emphasizing that the PIF is the Kingdom’s long-term, higher-risk and higher-return vehicle driving diversification and strategic domestic projects, whereas KSA’s reserves serve as a macro-stability tool. 

Future outlook

This division of roles enables SAMA to maintain stability while the PIF advances Vision 2030’s diversification agenda — a strategy showing results, with Fitch Ratings projecting the Saudi asset management industry to surpass $400 billion by 2026, highlighting the increasing depth and resilience of the Kingdom’s financial ecosystem.

Looking ahead, both experts expect US Treasuries to remain central to Saudi reserves — but with more diversification in the years to come. 

Saidi emphasized that US Treasuries will likely remain the anchor of SAMA’s portfolio due to the dollar peg, but the PIF’s strategy points to greater diversification in the non-reserve segment, with more aggressive investments in private equity, infrastructure, and renewables, as well as artificial intelligence, data centers, technology, and other asset classes.

“Saudi [Arabia] is unlikely to fully abandon the US dollar, despite de-dollarization talks, but expect more diversification and the prospect of a greater role for the Petro-Yuan, given the growing trade and investment links with China, increased holdings in other currencies for trade purposes, and increased holding of gold as a hedge,” Saidi, who has also served as vice governor of the Central Bank of Lebanon for two successive mandates, said.

He added that people should be prepared for the rollout and increased use of a central bank digital currency, a digital riyal, for cross-border transactions as well in the near future.