Saudi Arabia’s non-oil exports increased by 22.8% in September, mainly due to growth in the re-export sector
Saudi Arabia’s non-oil exports, including items that were re-exported, grew by 22.8% in September compared to the same time last year, thanks to strong growth in the re-export sector, according to official data released on Sunday.
Saudi Arabia’s Trade Update: September 2024
- Non-oil exports (excluding re-exports) grew by 11.6% in September compared to the same month last year, according to the General Authority for Statistics (GASTAT).
- The value of re-exported goods jumped by 65.4% year-on-year in September.
- Overall merchandise exports dropped by 14.9% due to a 24.5% fall in oil exports.
- Oil exports made up 70.7% of total exports in September 2024, down from 79.7% in September 2023.
- The share of non-oil exports compared to imports rose to 37.1%, up from 34.8% last year.
- Imports increased by 15%, leading to a 56.9% decline in the trade surplus.
Key Non-Oil Export Categories:
- Plastics, rubber, and their products were the top non-oil exports, making up 25.7% of the total and rising 19.5% year-on-year.
- Chemical products followed closely, accounting for 25.3% of non-oil exports with a 4.4% increase compared to September 2023.
The top exports and imports for September are as follows:
Plastics, rubber, and their products were the largest exports, making up 25.7% of all non-oil exports. These exports grew by 19.5% compared to last year.
Chemical products were the second-largest exports, making up 25.3% of non-oil exports, with a 4.4% increase from September 2023.
For imports, machinery, electrical equipment, and parts were the biggest category, accounting for 27.5% of total imports, with a 47.3% rise compared to last year. Transportation equipment and parts came second, making up 16.2% of imports, with a 22.2% increase compared to the same month last year.
China leads
China was the top destination for Saudi exports in September, making up 15.7% of the country’s total exports. Japan was second with 9%, and the UAE came in third with 8.5%. Other countries in the top 10 included India, South Korea, the USA, Egypt, Singapore, Bahrain, and Poland.
China was also the largest source of imports for Saudi Arabia, accounting for 25.8% of total imports. The US was second with 7.7%, and Germany was third with 4.9%. Other countries in the top 10 included the UAE, India, Italy, Japan, Indonesia, Egypt, and Russia.
In addition, data from GASTAT showed that 28.1% of Saudi imports in September passed through the King Abdulaziz Sea Port in Dammam.
Big Numbers
In the third quarter of 2024, Saudi Arabia’s exports of non-oil goods increased by 16.8%, while imports grew by 11.4%, according to GASTAT data.
Saudi Economy
In the third quarter of 2024, Saudi Arabia’s economy grew by 2.8% compared to the same time last year, mainly due to growth in non-oil industries, according to GASTAT data.
Non-oil sectors grew by 4.2% over the year, while government activities increased by 3.1%.
However, oil-related activities saw a small decline of 0.3%. Compared to the previous quarter, the country’s economy grew by 0.8%.
In November, Saudi Arabia reported an $8 billion (SAR 30.2 billion) budget deficit for the July–September quarter, mainly due to a drop in revenue from low oil prices.
In October, Saudi Arabia’s annual inflation rate increased to 1.9%, driven by higher prices for housing, utilities, and fuel.
Ratings
Credit rating agency Moody’s upgraded Saudi Arabia’s rating from A1 to Aa3 on Friday and changed its outlook from positive to stable. They did this because of the country’s continued progress in diversifying its economy. Moody’s said this will make Saudi Arabia less vulnerable to changes in the oil market and long-term shifts related to carbon.
In September, S&P Global Ratings also changed Saudi Arabia’s outlook from stable to positive, noting the country’s strong potential for growth beyond oil and its ability to handle changes in the energy sector. S&P Global kept the Kingdom’s A/A-1 credit ratings unchanged.
Published: 25th November 2024
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