Trade

Saudi Arabian non-oil exports increase by 13%

December 27, 2024, 11:54 AM

Workers at a solar panel factory in Uyayna, Saudi Arabia. The country's main non-oil trading partners are China, India, Japan and South Korea

Chemicals account for 27%
China largest trading partner
Crude may hit $70 per barrel

Non-oil exports from Saudi Arabia increased by almost 13 percent to SAR25.38 billion ($6.76 billion) in October compared to the same month last year, according to the latest government trade report.

Chemical products made up 26.8 percent of non-oil exports over the month, followed by plastics and rubber products at 23.7 percent, the General Authority for Statistics revealed.

Although non-oil trade was up, including re-exports, total merchandise exports were down by almost 11 percent, largely as a result of a drop in the share of oil in overall exports to 72.6 percent from 78.3 percent in October 2023.

Saudi Arabia is diversifying its economy away from a reliance on hydrocarbons. At the same time it has implemented voluntary production cuts of 500,000 barrels per day since 2022 in a bid to support the market.

A report by London consultancy Capital Economics said it expects Saudi oil output to rise by only around 5 percent by the end of 2025. Crude prices are expected to slide back to nearly $70 a barrel.

“State oil receipts will be weaker and will add to the need to keep fiscal policy tight. We expect the Saudi economy to grow by 2.8 percent in 2025, which is below consensus,” the report said.

China was the kingdom’s largest trading partner in October, taking up over 16 percent of total exports with goods valued at SAR14.95 billion ($4 billion) imported from Saudi Arabia.

Other key countries for Saudi exports included India (SAR8.79 billion), Japan (SAR8.7 billion) and South Korea (SAR8.31 billion).

China was also the major player when it came to Saudi imports, sending goods worth SAR17.58 billion throughout October. The US came next with SR5.69 billion, followed by the UAE (SAR4.34 billion).

Overall, imports were down by 3.8 percent to SAR72.01 billion. Machinery and equipment took up 25.7 percent of that.

King Abdulaziz Sea Port in Dammam was the most popular entry point for imports, processing goods valued at SAR21.16 billion, or almost one third of total inbound shipments.

Releasing the 2025 budget in November, the Saudi finance minister projected spending at SAR1,285 billion ($342 billion) in 2025, a decline from the 2024 budgeted expenditure of SAR1,345 billion ($359 billion).