Oil Exports Help Saudi Current Account Surge in 4Q of 2021

A rise in oil exports helped increase Saudi Arabia’s current account deposits touch US$26 billion in the fourth quarter of 2021, according to a Saudi Central Bank report. The rise in the current account balance was attributed to a strengthening surplus in the goods balance, which reached US$48.9 billion in the fourth quarter, up from US$37.9 billion in the previous quarter. Oil exports surged by 16.5%, quarter-on-quarter, to stand at US$64 billion while non-oil exports rose by 18% to US$21.5 billion.

Additionally, the Kingdom’s net flow of foreign direct investment reached US$1.92 billion in the fourth quarter, easing significantly from the second quarter's figure of US$13.8 billion. Yet, it went up compared to the third quarter, which witnessed a net inflow of US$1.75 billion.

The massive second quarter figure of net FDI was primarily attributed to a US$12.4 billion infrastructure deal between Aramco and a global investor consortium, in which the consortium acquired a 49% stake in Aramco Oil Pipelines Company, according to Aramco press release issued 18 June 2021. Equity and investment fund shares reached US$21 billion in the fourth quarter of 2021, up 61% when compared to the previous quarter.