Saudi Non-Oil Exports Surge Amid Vision 2030 Initiatives
Saudi Arabia’s non-oil exports surged by 10.5 percent year-on-year in the second quarter of 2024, primarily driven by outgoing shipments to the UAE and China, according to official data from the General Authority for Statistics (GASTAT).
Specifically, of the SR51.16 billion ($13.63 billion) registered by the sector in the three months to the end of June, non-oil goods worth SR15.07 billion were sent to the Kingdom’s Gulf neighbor, the UAE, while SR7.08 billion was exported to China.
Notably, the UAE imported machinery and mechanical appliances valued at SR5.83 billion, followed by transport equipment and chemical products worth SR3.68 billion and SR1.48 billion, respectively. Similarly, China held the top position for the Kingdom’s imports, constituting 23.1 percent of total incoming shipments valued at SR45.38 billion.
Given Saudi Arabia’s Vision 2030 economic diversification strategy, increasing non-oil exports is a central goal. The strategy aims for non-oil exports to contribute 50 percent of the non-oil GDP by the end of the decade. Other significant markets for Saudi goods in Q2 2024 included Bahrain (SR5.79 billion), India (SR5.48 billion), Singapore (SR3.13 billion), Turkiye (SR2.93 billion), and Belgium (SR2.40 billion).
Moreover, GASTAT noted that national non-oil exports, excluding re-exports, saw a 1.4 percent rise in the second quarter compared to the same period in 2023.
Kingdom’s Export Hubs Lead Non-Oil Shipments
King Fahad Industrial Sea Port in Jubail was the largest contributor to Saudi Arabia’s non-oil exports, sending out goods worth SR11.20 billion. Following closely were Ras Tanura Sea Port with SR9.96 billion, King Abdulaziz Sea Port in Dammam with SR7.84 billion, and Jeddah Islamic Sea Port at SR8.09 billion.
King Khalid International Airport in Riyadh handled exports valued at SR5.86 billion, while goods worth SR5.86 billion and SR3.25 billion passed through King Abdulaziz International Airport and King Fahad International Airport, respectively.
Saudi Merchandise Exports Remain Steady
Despite the rise in non-oil exports, Saudi Arabia’s overall merchandise exports witnessed a slight decline of 0.2 percent in Q2 2024, totaling SR294.51 billion. This decrease was primarily due to a 3.3 percent drop in oil exports, a result of Saudi Arabia’s decision to cut crude output, aligned with an OPEC+ agreement. The Kingdom had reduced its oil output by 500,000 barrels per day in April 2023, a cut now extended until December 2024.
In Q2 2024, China accounted for 16.2 percent (SR47.58 billion) of total Saudi exports, making it the top destination for the Kingdom’s outbound goods. South Korea followed, importing products worth SR26.40 billion, with Japan receiving goods valued at SR25.95 billion, India at SR23.45 billion, and the UAE at SR19.35 billion. The US received SR15.66 billion in Saudi exports, with Bahrain and Poland importing SR8.80 billion and SR5.65 billion worth of goods, respectively.
Saudi Imports Rise, Trade Balance Dips
According to GASTAT, Saudi Arabia’s imports rose by 3 percent in Q2 2024, totaling SR196.14 billion, compared to the same period in 2023. Meanwhile, the merchandise trade balance experienced a 6 percent dip. The report highlighted that the ratio of non-oil exports, including re-exports, to imports increased to 37.6 percent in Q2 2024, up from 35.1 percent in the same period last year.
GASTAT attributed this increase to the notable rise in non-oil exports, which grew by 10.5 percent, outpacing the 3 percent rise in imports. Machinery and electrical equipment were the most imported products in Q2 2024, constituting 25.7 percent of total inbound shipments to the Kingdom—a 27.4 percent rise compared to the previous year. Transportation equipment and parts made up 12.4 percent of imports, representing a 14.9 percent decrease year-on-year.
Saudi Arabia imported machinery and mechanical appliances worth SR20.45 billion from China, followed by base metal goods at SR4.98 billion and transport equipment at SR6.62 billion. Imports from the UAE and India amounted to SR11.80 billion and SR11.49 billion, respectively.
Saudi Trade with China Strengthens
As China remains Saudi Arabia’s top trading partner, the Kingdom continues to strengthen this relationship. Earlier this week, Saudia Cargo launched the “Landing in China in 24” campaign, highlighting its robust links with the Asian giant. This initiative, in collaboration with the Made in Saudi program, aims to enhance the global recognition and quality of Saudi products.
Marwan Niazi, Vice President of Commercial at Saudia Cargo, emphasized, “Through this campaign, we aim to enhance our shipping capabilities and broaden our export scope to the Chinese markets by optimizing export operations and providing advanced logistic services that align with the growing global market demands and commercial connections.”
This campaign underscores Saudi Arabia’s commitment to facilitating access to the Chinese market and showcasing its logistical capabilities and operational efficiency.
