Saudi Arabia’s non-oil exports have seen a significant surge in the second quarter of 2024, with a growth rate of 10.5 percent year-on-year. This growth has been driven by outgoing shipments to key trading partners such as the UAE and China, as reported by the General Authority for Statistics. In this period, non-oil goods worth SR15.07 billion were sent to the UAE, while China received shipments valued at SR7.08 billion. These figures highlight the increasing importance of diversifying the Kingdom’s economy away from oil dependence.
The UAE, a close Gulf neighbor, imported machinery and mechanical appliances worth SR5.83 billion from Saudi Arabia, followed by transport equipment and chemical products valued at SR3.68 billion and SR1.48 billion, respectively. China, on the other hand, held the top position for the Kingdom’s imports, constituting 23.1 percent of the total incoming shipments valued at SR45.38 billion. This underscores the strong trade relationship between Saudi Arabia and China, with the Asian powerhouse being a key market for Saudi exports.
Saudi Arabia’s Vision 2030 economic diversification strategy aims to increase non-oil exports significantly, with the goal of having the sector contribute to 50 percent of non-oil GDP by the end of the decade. This ambitious target underscores the Kingdom’s commitment to reducing its reliance on oil revenues and building a more sustainable and diversified economy.
In addition to the UAE and China, other countries that imported Saudi goods in the second quarter of 2024 included Bahrain, India, Singapore, Turkiye, and Belgium. These diverse trading partners highlight the global reach of Saudi Arabia’s non-oil exports and the importance of maintaining strong trade relationships with a variety of countries.
The General Authority for Statistics noted that national non-oil exports, excluding re-exports, also witnessed a rise of 1.4 percent in the second quarter of 2024 compared to the same period in 2023. Chemical and non-allied products led the Kingdom’s non-oil exports during this period, constituting 25.6 percent of the total outgoing shipments. Plastic products from Saudi Arabia accounted for 24.3 percent of the total non-oil exports, showcasing the diversity of products being exported by the Kingdom.
Key ports and airports played a crucial role in facilitating Saudi Arabia’s non-oil exports during the second quarter of 2024. King Fahad Industrial Sea Port in Jubail emerged as a major hub for outgoing shipments, with exports worth SR11.20 billion. Ras Tanura Sea Port, King Abdulaziz Sea Port in Dammam, and Jeddah Islamic Sea Port also played significant roles in handling Saudi Arabia’s non-oil exports.
On the import side, Saudi Arabia’s overall merchandise exports witnessed a marginal decline of 0.2 percent in the first quarter of 2024, attributed to a decrease in oil exports due to the Kingdom’s decision to reduce crude output in alignment with OPEC+ agreements. However, imports rose by 3 percent in the second quarter of 2024 to SR196.14 billion, with machinery and electrical equipment constituting a significant portion of inbound shipments.
China remained a key trading partner for Saudi Arabia, with exports to China amounting to 16.2 percent of total outgoing shipments in the second quarter of 2024. South Korea, Japan, India, and the UAE were also major destinations for Saudi exports during this period, highlighting the Kingdom’s diverse export markets.
To further strengthen its trade relationship with China, Saudi Arabia has launched initiatives such as the “Landing in China in 24” campaign by airfreight company Saudia Cargo. This campaign aims to enhance shipping capabilities and broaden export scope to Chinese markets, aligning with the Made in Saudi initiative to promote Saudi products globally.
In conclusion, Saudi Arabia’s non-oil exports have shown robust growth in the second quarter of 2024, driven by strong demand from key trading partners such as the UAE and China. The Kingdom’s focus on economic diversification and increasing non-oil exports underscores its commitment to building a more resilient and sustainable economy for the future. By leveraging its strategic trade relationships and investing in key sectors, Saudi Arabia is well-positioned to achieve its Vision 2030 goals and drive continued growth in non-oil exports.
