RIYADH: Saudi Arabia’s Arab neighbor UAE was the favorite destination for the Kingdom’s non-oil goods in September, with exports to the Emirates amounting to SR6.54 billion ($1.74 billion), official data showed.
According to the General Authority for Statistics, Saudi Arabia exported mechanical and electrical equipment worth SR3.10 billion to the UAE in September, followed by transport parts and chemical products valued at SR1.64 billion and SR375.8 million, respectively.
Bolstering the exports of non-oil goods is a crucial goal outlined in Saudi Arabia’s Vision 2030 economic diversification agenda, with the Kingdom steadily reducing its decades-long dependence on crude revenues.
Earlier this month, speaking at the World Investment Conference, Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim said that non-oil activities now account for 52 percent of the Kingdom’s gross domestic product.
He also added that this sector of the economy has been growing at 20 percent since the launch of the Vision 2030.
In September, Saudi Arabia’s outbound shipments of plastic and rubber products to the UAE stood at SR345.9 million, followed by live animals and animal products at SR149.6 million.
India was another major destination for Saudi Arabia’s non-oil products over the period, with the Asian nation receiving inbound shipments worth SR2.35 billion from the Kingdom.
Chemical products and allied industries worth SR1.21 billion were imported from Saudi Arabia by India.
Other major non-oil exports to the country were plastic products and jewelry valued at SR438.4 million and SR345.5 million, respectively.
China held the third spot for Saudi Arabia’s non-oil exports, with the Asian giant receiving inbound shipments from the Kingdom valued at SR1.73 billion in September.
Other top destinations for Saudi Arabia’s non-energy products over the month were Singapore, which imported goods valued at SR1.39 billion, Turkiye at SR973.4 billion, and Belgium at SR964.7 billion.
Egypt imported non-oil goods worth SR862.8 billion from the Kingdom, followed by the US and Jordan at SR743.2 billion and SR733.1 billion, respectively.
Overall, Saudi Arabia’s non-oil exports increased by 22.8 percent year on year in September, reaching SR25.95 billion.
Affirming the progress of Saudi Arabia’s non-oil business activities, the Kingdom’s purchasing managers’ index rose to a six-month high of 56.9 in October, beating the September rating of 56.3 and the August level of 54.8.
According to the Riyad Bank Saudi Arabia PMI report, any readings above 50 indicate expansion of non-oil business activities, while levels below 50 signal contraction.
In October, a report released by Moody’s also projected that Saudi Arabia’s non-hydrocarbon real gross domestic product is set to grow between 5 percent and 5.5 percent from 2025 to 2027, driven by increased government spending.
GASTAT revealed that non-oil exports worth SR16.52 billion were sent to other countries through sea from Saudi Arabia, while outbound shipments via land and air totaled SR4.96 billion and SR4.46 billion, respectively.
King Fahad Industrial Sea Port in Jubail was the main exit point for Saudi Arabia’s non-energy exports with goods valued at SR3.54 billion.
Al Bat’ha Port handled non-oil outbound goods worth SR1.78 billion, while exports worth SR802.8 million passed through Al Hadithah Port.
Among airports, King Khalid International and King Abdulaziz International handled non-hydrocarbon export goods worth SR2.33 billion and SR1.89 billion, respectively.
Saudi Arabia’s overall merchandise exports
GASTAT, in its report, revealed that Saudi Arabia’s overall merchandise exports in September stood at SR88.56 billion, representing a decline of 14.9 percent compared to the same period of the previous year.
According to the authority, oil exports witnessed a fall of 24.5 percent year on year in September.
“Consequently, the percentage of oil exports out of total exports decreased from 79.7 percent in September 2023 to 70.7 percent in September 2024,” said GASTAT.
To stabilize the market, Saudi Arabia cut its oil production by 500,000 barrels per day in April 2023, a reduction now extended until December 2024.
China was the Kingdom’s most important trading partner in September, with exports to the Asian nation amounting to 13.91 billion, followed by Japan and the UAE at SR7.98 billion and SR7.49 billion, respectively.
The strong flow of Saudi exports to China signifies strong bilateral relations between both nations, with the Kingdom being the largest trading partner of China in the Middle East since 2001, and bilateral trade between the nations reaching $107.23 billion in 2023.
China and Saudi Arabia are strategic partners in various other sectors like energy and finance, as well as the Belt and Road Initiative.
In September, Saudi Arabia’s exports to South Korea amounted to SR6.87 billion, followed by the US at SR3.27 billion, Egypt at SR2.89 billion and Singapore at SR2.70 billion.
Imports in September
GASTAT revealed that Saudi Arabia’s overall imports in September reached SR69.8 billion, representing an increase of 15 percent compared to the same month of the previous year, while the surplus of the merchandise trade balance decreased by 56.9 percent during the same period.
In September, Saudi Arabia imported goods worth SR17.99 billion from China, led by mechanical appliances and electrical equipment valued at SR8.29 billion.
The authority added that Chinese imports of transport equipment and base metal products amounted to SR2.37 billion and SR1.66 billion, respectively.
Saudi Arabia also imported plastic and rubber products from China valued at SR976.6 million, followed by textiles at SR955.6 million.
China was closely followed by the US and Germany with imports from these nations to the Kingdom in September stood at SR5.39 billion and SR3.45 billion, respectively.
In September, Saudi Arabia imported goods worth SR3.42 billion from the UAE, and SR3.21 billion from India.
Italian imports to the Kingdom amounted to SR2.50 billion, while inbound shipments from Japan and Indonesia stood at SR2.34 billion and SR2.08 billion, respectively.
GASTAT said that inbound shipments worth SR43.07 billion reached the Kingdom via sea, while imports valued at SR18.07 billion and SR8.73 billion came via air and land, respectively.
King Abdulaziz Sea Port in Dammam was the primary entry point for goods in September through sea, with imports valued at SR19.65 billion, representing 28.1 percent of the total inbound shipments.
The report revealed that Jeddah Islamic Sea Port handled incoming shipments valued at SR12.54 billion, followed by Ras Tanura Sea Port at SR4.78 billion.
King Khalid International Airport in Riyadh welcomed inbound shipments worth SR8.57 billion.
Through land, Al Bat’ha Port and Riyadh Dry Port handled imports valued at SR3.51 billion and SR3.09 billion, respectively.
