LONDON: Saudi Arabia is under no pressure to ditch the currency peg to the dollar thanks to its currency reserves.
That is according to a report by Indosuez Wealth Management, the global wealth management arm of France’s Credit Agricole Group.
The report looked at the current account balances for the Gulf region in the wake of the 2014-2015 oil price collapse.
Gulf countries rely heavily on oil sales. The oil price collapsed from $108 per barrel in June 2014 to as low as $29 in January 2016. It is now trading at $48 per barrel. But while that has impacted the financial strength of several countries, it does not represent a threat to the peg, said the report.
“Saudi Arabia is able to rely on its reserves that remain considerable and amount to more than two years’ worth of imports,” said Dr. Paul Wetterwald, chief economist at Indosuez Wealth Management business line.
“This should allow the authorities to withstand any pressure on the peg.”
Saudi Arabia’s current account went from a surplus to a deficit of 8.3 percent in 2015. More recently the country avoided running a twin deficit in the first quarter of this year as the Ministry of Finance disclosed a budget deficit of 4 percent of gross domestic product (GDP) annualized, and a rebound in the oil price helped to get the current account back in surplus.
Exports gained and imports declined due to weak domestic demand, resulting in a $6 billion surplus mainly due to oil-related exports receipts.
Despite this, the capital account displayed large outflows reflecting possibly reallocation of sovereign wealth. Reserves continued to decline over the January-May 2017 period and stand now at $499 billion.
Saudi financial reserves keep pressure off the currency peg
Saudi financial reserves keep pressure off the currency peg
Oman’s trade surplus narrows to $12bn as exports decline
RIYADH: Oman’s trade surplus narrowed to 4.69 billion rials ($11.9 billion) by the end of October as weaker oil and gas shipments weighed on exports, even as imports rose, according to official data.
The surplus compares with 7.31 billion rials in the same period of 2024, the Oman News Agency reported, citing preliminary figures from the National Centre for Statistics and Information. Total merchandise exports fell 8 percent year on year to 19.3 billion rials, while imports increased 6.8 percent to 14.6 billion rials.
This comes as Fitch Ratings last month upgraded Oman to investment-grade status, raising its long-term foreign-currency rating from BB+ to BBB-, citing stronger public finances, an improved external position, and a continued commitment to prudent fiscal management.
The agency noted that Oman has successfully strengthened fiscal discipline, reducing government debt to around 36 percent of gross domestic product in 2025, down from about 68 percent in 2020.
“The decline in the value of Oman’s merchandise exports is primarily attributed to a decrease in the value of oil and gas exports, which reached 12.1 billion rials by the end of October 2025, a 16.3 percent decrease compared to 14.4 billion rials at the end of October 2024,” the ONA report stated.
It added: “Conversely, the value of Oman’s non-oil merchandise exports increased by 9.9 percent, reaching 5.61 billion rials by the end of October 2025, compared to 5.1 billion rials during the same period in 2024.”
The value of re-exports also increased, reaching 1.6 billion rials by the end of October, up 11.6 percent year on year.
The UAE was the leading destination for Oman’s non-oil exports, with shipments valued at 1.07 billion rials, marking a 27.6 percent increase compared to the same period in 2024.
The UAE also topped the list for re-exports, at 532 million rials, and for exports to Oman, at 3.49 billion rials.
Saudi Arabia ranked second among destinations for Oman’s non-oil exports, with a value of 920 million rials, followed by India at 597 million rials.
In re-exports, Iran ranked second with 324 million rials, followed by the UK with 179 million rials.
On the import side, China ranked second, with imports valued at 1.55 billion rials, followed by Kuwait at 1.25 billion rials.
