UAE and China major destinations of Saudi non-oil exports in Q2: GASTAT

Economic ties have further strengthened between Saudi Arabia and China in recent years
 

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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