Saudi Arabia entered the second half of 2026 with stronger trade balances, resilient merger and acquisition (M&A) activity and expanded access to international finance, illustrating how the Kingdom is broadening the financing sources underpinning Vision 2030 despite a more selective global investment environment.
The latest trade, investment and financing developments demonstrate how Saudi Arabia is diversifying the mechanisms through which it funds long-term economic transformation. Alongside hydrocarbon revenues, the Kingdom is increasingly leveraging sovereign wealth resources, domestic and international capital markets, multilateral development institutions, export-credit agencies and private-sector investment to finance infrastructure, advanced manufacturing, technology, tourism and other strategic sectors.
Oil Exports Lift Trade Surplus
Saudi Arabia’s merchandise trade surplus surged 329% year-on-year to SAR26.02 billion (US$6.92 billion) in May 2026, compared with SAR6.07 billion a year earlier, according to the General Authority for Statistics (GASTAT). The surplus also increased 14.4% from April, indicating that the improvement reflected not only a favourable annual comparison but also stronger month-on-month trade performance.
Total merchandise exports rose 3.9% year-on-year to SAR93.78 billion, while petroleum exports climbed 19.5% to SAR70.9 billion, accounting for 75.6% of total exports. Merchandise imports declined to SAR67.75 billion, reinforcing the stronger external balance despite continued softness in non-oil exports.
China remained Saudi Arabia’s largest trading partner during the month, accounting for 12.3% of merchandise exports and 22% of imports, underscoring the Kingdom’s continued integration with Asian supply chains even as it expands financing partnerships with multilateral institutions and Western export-credit agencies.
Economists generally view stronger external balances as enhancing macroeconomic resilience by improving foreign-exchange earnings and reducing external financing pressures. However, the impact on public finances continues to depend on oil prices, production levels, fiscal policy and government expenditure rather than trade performance alone.
While non-oil exports remained under pressure, the latest figures suggest that petroleum exports continue to provide a supportive external backdrop as Saudi Arabia advances large-scale investment programmes under Vision 2030.
Saudi Arabia Leads Regional M&A Activity
Corporate investment activity remained resilient despite a more cautious global deal making environment.
According to PwC Middle East’s TransAct Middle East Mid-Year 2026 Update, Saudi Arabia accounted for an estimated 74 mergers and acquisitions during the first half of 2026, the largest share among regional markets. Together, Saudi Arabia and the United Arab Emirates represented approximately 65% of all Middle East transactions.
PwC estimates that the region recorded 272 M&A transactions during the first six months of the year, based on completed transactions available during the reporting period and extrapolated across the first half.
Although inbound cross-border investment declined by around 19%, intra-regional transactions increased by 2%, highlighting the growing importance of regional capital, sovereign wealth funds and strategic corporate investors in sustaining deal activity amid global uncertainty.
“The Middle East continues investing in capabilities that support future growth,” said Emad Mattar, PwC Middle East Deals Leader, pointing to continued investment in artificial intelligence, digital infrastructure, industrial capability, logistics and energy.
Saudi Arabia’s deal activity continued to be supported by investment in advanced manufacturing, logistics, digital infrastructure, artificial intelligence, energy and industrial development—sectors that remain central to the Kingdom’s Vision 2030 strategy and its objective of attracting greater private-sector participation.
Technology, Media and Telecommunications remained the region’s most active sector with 76 transactions, up from 54 a year earlier. Financial services recorded 53 deals, while energy, utilities and natural resources rose to 22 transactions, reflecting continued investment in industries aligned with long-term structural transformation.
PwC also noted that, unlike global M&A markets increasingly characterised by megadeals, Middle East activity continues to be driven primarily by medium-sized acquisitions led by sovereign investors, family businesses and strategic corporate buyers.
PIF Expands Long-Term Financing Options
Alongside resilient corporate investment, Saudi Arabia’s Public Investment Fund (PIF) has strengthened its access to international financing through new partnerships with multilateral institutions and export-credit agencies.
The sovereign wealth fund signed memoranda of understanding with the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the Export-Import Bank of the United States (US EXIM) with a combined potential value of US$24.5 billion.
The agreements comprise a US$6 billion financing framework with IFC, a US$3.5 billion guarantee programme with MIGA and financing arrangements of up to US$15 billion through US EXIM.
Importantly, these agreements represent financing frameworks rather than immediate funding commitments. They establish financing and guarantee mechanisms that can support eligible projects undertaken by PIF and its portfolio companies across infrastructure, transportation, healthcare, tourism, renewable energy and advanced manufacturing while encouraging greater private-sector participation.
The MIGA partnership will explore guarantees supporting investments across the Middle East and North Africa, particularly projects related to industrial innovation, emissions reduction and sustainable economic development.
Meanwhile, the US EXIM framework is intended to facilitate procurement of American goods and services for qualifying Saudi projects. According to PIF, the United States remains its largest international investment market, with purchases by the fund and its portfolio companies reaching approximately US$65 billion since 2017, contributing an estimated US$35 billion to US gross domestic product.
Beyond sovereign wealth financing, Saudi Arabia has continued broadening its financing toolkit through domestic and international debt markets, export-credit agencies and multilateral institutions, complementing traditional oil revenues with a wider range of funding sources for strategic investment. The International Monetary Fund has identified continued development of domestic capital markets and greater private-sector participation as important pillars supporting the next phase of Vision 2030.
Broadening the Kingdom’s Financing Platform
The combined trade, investment and financing developments point to Saudi Arabia’s continuing effort to diversify the resources supporting its long-term economic transformation.
The International Monetary Fund’s 2026 Article IV Mission concluded that Saudi Arabia has demonstrated resilience despite heightened regional geopolitical uncertainty, highlighting continued progress in implementing Vision 2030 reforms, strengthening economic institutions and reinforcing macroeconomic stability. The IMF also welcomed PIF’s updated 2026–2030 strategy, which places greater emphasis on disciplined capital allocation, attracting private investment and deepening domestic capital markets.
Recent sovereign assessments by S&P Global Ratings have likewise highlighted Saudi Arabia’s strong external balance sheet, substantial sovereign financial assets and institutional capacity to support long-term investment, while continuing to identify oil-price volatility, fiscal execution and the pace of diversification as important medium-term considerations.
Taken together, the latest trade data, regional acquisition activity and international financing agreements suggest Saudi Arabia is entering the second half of 2026 with a broader financing platform than in previous years. Stronger petroleum exports have reinforced the Kingdom’s external position, resilient M&A activity reflects sustained investor confidence in strategic sectors, and PIF’s new financing frameworks expand potential sources of long-term funding.
The sustainability of that momentum, however, will depend less on the availability of financing than on effective project execution, stronger private-sector participation and continued expansion of the non-oil economy. Maintaining the pace of structural reform, deepening domestic capital markets and translating investment commitments into commercially viable projects will be critical to sustaining Saudi Arabia’s long-term growth beyond the oil cycle.
Related news:
East Africa Eyes Joint Refinery as Dangote Signals Investment
Iran War Redraws Global Energy Trade Around Strategic Choke Points
Read also:
Saudi Arabia’s Non-Oil Export Boom Highlights Economic Diversification
