Saudi non-oil exports to UAE and China see rise
Saudi Arabia's non-oil exports experienced a 10.5 percent year-on-year
increase in the second quarter of 2024, driven primarily by shipments to the
UAE and China, according to official data from the General Authority for
Statistics (GASTAT).
Out of the SR51.16 billion ($13.63 billion) in non-oil exports recorded
between April and June, the UAE accounted for SR15.07 billion, while China
received SR7.08 billion. China also emerged as the top source of imports for
Saudi Arabia, comprising 23.1 percent of total imports valued at SR45.38
billion.
This growth aligns with Saudi Arabia's Vision 2030, which aims to diversify
the economy by significantly increasing non-oil exports, with a goal of these
exports contributing to 50 percent of the non-oil GDP by 2030.
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Other key importers of Saudi non-oil 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). GASTAT also reported a 1.4
percent rise in national non-oil exports, excluding re-exports, compared to the
same period in 2023.
Chemical and allied products led Saudi Arabia's non-oil exports, making up
25.6 percent of the total, followed closely by plastic products at 24.3
percent.
Major ports facilitating these exports included King Fahad Industrial Sea
Port in Jubail (SR11.20 billion), Ras Tanura Sea Port (SR9.96 billion), King
Abdulaziz Sea Port in Dammam (SR7.84 billion), and Jeddah Islamic Sea Port
(SR8.09 billion). Airports also played a significant role, with King Khalid
International Airport in Riyadh and King Abdulaziz International Airport in
Jeddah handling exports valued at SR5.86 billion and SR5.86 billion,
respectively.
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Overall Merchandise Exports and Imports
While non-oil exports saw a boost, overall merchandise exports experienced a
slight decline of 0.2 percent in Q2 2024, totaling SR294.51 billion. This dip
was primarily due to a 3.3 percent reduction in oil exports, influenced by
Saudi Arabia's strategic decision to cut crude output by 500,000 barrels per
day starting in April 2023, a move extended through December 2024 to stabilize
the market.
China remained the top destination for Saudi exports, accounting for 16.2
percent (SR47.58 billion) of the total, followed by South Korea (SR26.40
billion), Japan (SR25.95 billion), India (SR23.45 billion), and the UAE
(SR19.35 billion). The United States, Bahrain, and Poland were also significant
importers of Saudi goods during this period.
Saudi imports rose by 3 percent year-on-year to SR196.14 billion in Q2 2024,
while the merchandise trade balance saw a 6 percent decline. Non-oil exports,
including re-exports, to imports increased to 37.6 percent, up from 35.1
percent the previous year, driven by a substantial rise in non-oil exports.
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Strategic Trade with China
The robust trade relationship between Saudi Arabia and China continues to
strengthen, as highlighted by Saudia Cargo's recent "Landing in China in
24" campaign. This initiative, developed in collaboration with the Saudi
Export Development Authority's "Made in Saudi" initiative, aims to enhance
the visibility and quality of Saudi products in Chinese markets.
Marwan Niazi, Vice President of Commercial at Saudia Cargo, emphasized the
campaign's goal to improve shipping capabilities and expand Saudi exports to
China by optimizing logistics and meeting growing global market demands.
Source: Arab News
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