Saudi Arabia Broadens Its Investment Base as Trade Surplus Soars 329%

Saudi Arabia broadens financing sources as trade surplus jumps 329% in May 2026

Saudi Arabia entered the second half of 2026 with a markedly stronger external position and widening access to international finance, as its merchandise trade surplus surged 329% year‑on‑year to SAR26.02 billion (US$6.92 billion) in May 2026. The improvement came alongside resilient domestic merger and acquisition activity — an estimated 74 deals in the first half of 2026 — and fresh financing partnerships that expand the Kingdom’s long‑term funding options for Vision 2030 projects.

"The Middle East continues investing in capabilities that support future growth," said Emad Mattar, PwC Middle East Deals Leader, highlighting continued investor appetite for sectors such as artificial intelligence, digital infrastructure, industrial capability, logistics and energy.

Key trade and financing facts for May and H1 2026 include:

• Merchandise trade surplus: SAR26.02 billion (US$6.92 billion), up 329% year‑on‑year from SAR6.07 billion.
• Total merchandise exports: SAR93.78 billion, a 3.9% year‑on‑year rise.
• Petroleum exports: SAR70.9 billion, up 19.5% and accounting for 75.6% of total exports.
• Merchandise imports: SAR67.75 billion, supporting the stronger external balance.
• China’s share of trade: 12.3% of Saudi merchandise exports and 22% of imports in May.
• Regional M&A: Saudi Arabia recorded an estimated 74 M&A transactions in H1 2026; the region totaled 272 transactions, with Saudi Arabia and the UAE representing roughly 65% of deals.

The surge in the surplus was not only a favourable annual comparison but also reflected a 14.4% month‑on‑month increase from April, underscoring stronger near‑term trade performance. Petroleum exports were the dominant driver, while non‑oil exports remained soft. Economists note that strengthened external balances support macroeconomic resilience by boosting foreign‑exchange earnings and lowering external financing pressures, though public finances still depend on oil prices, production and fiscal policy.

Corporate dealmaking in the Kingdom remained robust despite a more selective global environment. PwC’s TransAct Middle East Mid‑Year 2026 Update estimates 74 Saudi M&A transactions during the first half of the year, with Technology, Media and Telecommunications the most active sector at 76 transactions across the region (up from 54 a year earlier). Financial services logged 53 deals and energy, utilities and natural resources rose to 22 transactions. Inbound cross‑border investment fell by around 19%, while intra‑regional transactions increased by 2%, highlighting the growing role of regional capital, sovereign funds and strategic corporate buyers.

Saudi Arabia’s Public Investment Fund (PIF) has been expanding its long‑term financing toolkit, signing memoranda of understanding with multilateral institutions including the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), as well as with export‑credit agencies such as the Export‑Import Bank of the United States. These partnerships aim to mobilise additional private and institutional capital for infrastructure, advanced manufacturing, technology, tourism and other strategic sectors central to Vision 2030.

Outlook: The combination of a stronger external surplus, active domestic M&A and widened access to multilateral and export‑credit financing positions Saudi Arabia to sustain investment in transformative sectors. Continued reliance on petroleum export revenues means the pace of fiscal consolidation and the trajectory of oil markets will remain key variables shaping how rapidly public and private projects are financed over the coming quarters.