Saudi Arabia’s non-oil exports grew by 7.5% in August, driven by the re-export sector

Saudi Arabia’s non-oil exports grew by 7.5% in August, driven by the re-export sector

Saudi Arabia’s non-oil exports, including re-exports, grew by 7.5% in August compared to the same month last year, thanks to strong growth in the re-export sector, according to official data.

Re-exports on the Rise

According to the General Authority for Statistics (GASTAT), Saudi Arabia’s non-oil exports increased by 3% in August compared to the same month last year.

Re-exports (goods that are imported and then exported again) jumped by 18.9% during the same period.

However, total exports fell by 9.8% in August, mainly due to a 15.5% drop in oil exports. As a result, oil exports made up 70.3% of total shipments in August 2024, down from 75.1% a year earlier.

Imports into Saudi Arabia decreased by 3.9% in August, and the trade balance (difference between exports and imports) dropped by 21%. The ratio of non-oil exports to imports improved to 42.5%.

Saudi Arabia’s inflation rate rose to 1.7% in September, mainly due to higher utility, food, and beverage prices.

The government continues to invest heavily in diversifying the economy beyond oil, following its Vision 2030 strategy.

Main Export and Import Items

According to a GASTAT report:

• Chemical products are the country’s top non-oil exports, making up 25.8% of all non-oil exports. In August, these exports grew by 9.3% compared to the previous year.
• Plastics, rubber, and related products came next, contributing 23.9% of non-oil exports. These products saw a small increase of 1% compared to the same period last year.

On the import side:

• Machinery, electrical equipment, and their parts were the main imports, accounting for 26.2% of all imports. These imports increased by 5.6% compared to last August.
• Transportation equipment and parts followed, making up 13.5% of total imports. However, these imports dropped by 11.7% compared to August 2023.

China leads in trade with Saudi Arabia

In August, 16% of Saudi Arabia’s exports went to China, making it the top export destination. South Korea came next with 9.6%, followed by India with 9.5%.

Other key export destinations included Japan, the UAE, the U.S., Bahrain, Egypt, Poland, and Malaysia. Together, these countries accounted for 67.7% of Saudi Arabia’s total exports, including re-exports.

China was also the top source of imports for Saudi Arabia, making up 23.2% of its total imports in August 2024. The U.S. followed with 9.6%, and the UAE with 6.2%.

Germany, the UAE, Italy, Japan, Egypt, the UK, and South Korea were also important import sources, contributing 62.7% of Saudi Arabia’s total imports.

Economic Growth

According to the Ministry of Economy and Planning, Saudi Arabia’s economy is expected to grow by 0.8% in 2024, 4.6% in 2025, 3.5% in 2026, and 4.7% in 2027.

Published: 24th October 2024

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