Skip to content Skip to Search
Skip navigation

New Saudi bid to turn around sliding non-oil trade

A credit insurance deal with an affiliate of petrochemicals company Tasnee could boost Saudi non-oil exports Tasnee
A credit insurance deal with an affiliate of petrochemicals company Tasnee could boost Saudi non-oil exports

Saudi Arabian non-oil trade exports, which have declined in the wake of oil production cuts, could get a boost via a credit insurance deal agreed this week with an affiliate of petrochemicals company National Industrialization Co (Tasnee). 

The initiative, provided by the Saudi Export-Import Bank (Saudi EXIM Bank) through Evonik Tasnee Marketing, protects against the risk of non-payment by international buyers, an issue which has held some Saudi exporters back. 

Evonik Tasnee Marketing is a subsidiary of Tasnee, Saudi Arabia’s second largest industrial company and one of 30 Saudi-listed companies included in the MSCI emerging markets index.

Saudi EXIM CEO Saad Alkhalb said the deal will help “drive the growth of Saudi non-oil exports across world markets”, according to the Saudi Press Agency. 

The government established the bank in 2019 to help with its Vision 2030 policy of diversification away from oil income.

Non-oil exports in June, including re-exports, amounted to SAR16.9 billion ($4.5 billion), a year-on-year decline of 45 percent and their lowest monthly level in a year, according to the latest data published by the General Authority for Statistics.  

Total exports were down 39 percent on the year at SAR88.8 billion, mainly as a result of a 38 percent fall of the value of oil exports to SAR71.9 billion, though the share of oil exports rose year on year from 79 percent to 81 percent. 

In June, Opec+ – the Organization of the Petroleum Exporting Countries plus allies led by Russia – agreed to limit supply into next year, while Saudi Arabia said this week it is likely to continue its voluntary production cut for a third month into October. 

China continues to be Saudi Arabia’s top export market, at 15 percent of total exports, worth SAR13.7 billion, followed by South Korea, India, Japan, the US, UAE, Egypt, Malaysia, France and Singapore.

Latest articles

The WakeCap system being used on a construction site

Aramco adopts heat-sensing construction helmets

Saudi Aramco is deploying advanced safety helmets equipped with heat stress sensors to protect workers on some of its construction sites, a critical concern in the Gulf region’s scorching climate. The helmets, developed by Dubai and Saudi Arabia-based construction tech startup WakeCap, utilise internet-of-things (IoT) technology that monitors worker attendance, location, and safety incidents in […]

Wind turbines above the village of Kotronas in the Peloponnese region. Greece's Terna Energy invests in wind, solar, hydroelectric and pumped storage projects

Masdar buys Greece’s biggest investor in renewables

The UAE’s state-owned clean energy company Masdar is to acquire a majority share in Terna Energy of Greece. The initial deal – one of the largest in the European renewables market and the biggest ever energy transaction on the Athens Stock Exchange – is for a 67 percent stake. The price of €20 ($21.45) per […]

KBR Iraq

US firm wins $46m contract to boost Iraq infrastructure 

US engineering giant KBR has won a five-year $46 million contract to support Iraq’s infrastructure development and future energy projects, including mega-projects. The company is expanding its presence in Iraq, establishing a new office in Baghdad and said it is also considering the creation of a design centre to enhance local engineering skills. Under the […]

The UAE attracted FDI inflows of $30.7 billion last year, a 35 percent year-on-year growth

UAE ranks second in global greenfield FDI projects

A 33 percent year-on-year surge in greenfield FDI projects in the UAE catapulted the Emirates up two places to the second spot after the US in 2023. There are now 1,323 greenfield FDI project announcements, state-run Wam news agency reported, citing the World Investment Report 2024. The UAE attracted FDI inflows of $30.7 billion last […]