Weekly Market Brief – 9/24/2021

Saudi Arabia Macroeconomic Developments

• Saudi Arabia’s non-oil exports rose 18 percent YoY (-12 percent MoM) to reach SAR20.8 billion ($5.5 billion) in July. Oil accounted for 78 percent of total exports, rising 17 percent MoM and totaling SAR71.6 billion ($19.1 billion) amid high demand from Asia. Compared to last month, Saudi exports rose 8 percent while imports fell 3 percent. The Kingdom’s trade balance increased another 22 percent MoM to reach a SAR46.1 billion ($12.3 billion) surplus.

• The value of U.S.-Saudi trade rose 45 percent YoY (-20 percent MoM) in July, totaling SAR9.1 billion ($2.4 billion). Saudi exports to the U.S. were up 80 percent YoY (-36 percent MoM). Oil exports to the U.S., India, and South Korea were lower while China and Japan had higher demand for Saudi crude. U.S. exports to Saudi Arabia meanwhile rose 24 percent YoY (+3 percent MoM) in July and totaled SAR4.8 billion ($1.3 billion). China remained the Kingdom’s top trading partner while the U.S. registered as Saudi Arabia’s second largest import source and its sixth largest export market.

• Saudi Arabia’s holdings of U.S. Treasuries increased for the second consecutive month in July, totaling SAR480.4 billion ($128.1 billion). The Kingdom’s holdings were up 0.2 percent from June and 2.8 percent from July last year. However, holdings remain well below their peak of SAR691.5 billion (184.4 billion) in February 2020. Saudi Arabia is the 16th largest sovereign holder of U.S. debt.