UAE The Top Destination For Saudi Arabias Non-oil Goods: GASTAT

RIYADH: Saudi Arabia’s neighbor UAE was the favorite destination for the Kingdom’s non-oil goods in August, with exports seeing a monthly rise of 10.42 percent to reach SR6.78 billion ($1.81 billion).

According to the General Authority for Statistics, Saudi Arabia exported mechanical and electrical equipment amounting to SR2.78 billion to the country, representing a 16.80 percent increase from the previous month.

Outbound shipments of transport equipment to the UAE reached SR2.17 billion in August, marking a month-on-month rise of 57.24 percent.

Bolstering the non-oil private sector is a crucial part of the Kingdom’s Vision 2030 agenda, as it steadily pursues economic diversification by reducing its dependence on crude revenues.

Other major shipments to the UAE in August were chemical products valued at SR448.2 million, and plastic and rubber items amounting to SR359.1 million.

Affirming the growth of Saudi Arabia’s non-oil private sector, the Kingdom’s Purchasing Managers’ Index reached 54.8 in August, and later accelerated to 56.3 in September.

According to the Riyad Bank PMI report, compiled by S&P Global, Saudi Arabia’s growth in the non-oil private sector was driven by improved sales momentum and rising new orders in August and September.

The report also emphasized the significance of non-oil sector growth, given current crude production cuts and declining global oil prices, and added that the Kingdom is better positioned to navigate the challenges of market fluctuations for the commodity.

Other top destinations for Saudi Arabia’s non-oil goods

According to GASTAT, China was another major destination for Saudi Arabia’s non-oil goods, with exports to the Asian giant amounting to SR2.27 billion, representing a marginal decline from SR2.38 billion in July.

The authority revealed that China imported chemical and allied products worth SR1.11 billion in August, followed by plastic and rubber products amounting to SR786.3 million.

In August, Saudi Arabia also exported mineral products amounting to SR176.6 million to China, while outbound shipments of base metals totaled SR78.7 million.

India was another major destination for the Kingdom’s non-oil products, with outbound shipments to the Asian nation in August totaling SR2.08 billion.

According to GASTAT, India imported chemical products worth SR1.55 billion, while the outbound shipment value of plastic products and base metals to the Asian nation stood at SR497.1 million and SR366.1 million, respectively.

Other top destinations for Saudi Arabia’s non-oil goods in August were Singapore, Belgium, and Egypt, which imported goods valued at SR1.22 billion, SR896.8 million, and SR842.9 million, respectively.

In August, Bahrain imported non-oil goods worth SR816.8 million from Saudi Arabia, followed by Turkiye and Jordan at 797.6 million and SR787.9 million, respectively.

Overall, Saudi Arabia’s non-oil exports – including re-exports – in August reached SR27.52 billion, representing a 7.5 percent rise compared to the same month in the previous year.

Compared to July, the Kingdom’s non-oil outbound shipments witnessed a rise of 8.13 percent in August.

An outlook of overall merchandise exports

GASTAT revealed that Saudi Arabia’s overall merchandise exports, however, declined by 9.8 percent in August compared to the same month of the previous year, driven by a 15.5 percent decline in oil sales.

As a result, the percentage of oil out of total exports decreased to 70.3 percent in August, from 75.1 percent in the same month in the previous year.

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.

According to the authority, Saudi Arabia sent overall merchandise exports worth SR14.83 billion to China in August, followed by South Korea at SR8.94 billion and India at SR8.82 billion, respectively.

The strong flow of Saudi exports to China signifies strong bilateral relations between the nations. The Kingdom has been the largest trading partner of the Asian powerhouse in the Middle East since 2001, and bilateral trade between the nations reached $107.23 billion in 2023.

China and Saudi Arabia are strategic partners in various sectors, including energy and finance, as well as the Belt and Road Initiative.

According to GASTAT, exports worth SR17.71 billion were sent to other countries through sea by Saudi Arabia in August, while outbound shipments via land and air totaled SR5.03 billion and SR4.78 billion, respectively.

King Fahad Industrial Sea Port in Jubail was the main exit point for Saudi Arabia’s exports with goods valued at SR3.67 billion.

Al-Batha Port handled outbound goods worth SR1.78 billion, while exports worth SR881.9 million passed through Al-Hadithah Port.

Among airports, King Khalid International Airport and King Abdulaziz International Airport handled export goods worth SR2.38 billion and SR1.84 billion, respectively.

Saudi Arabia’s imports in August

According to the GASTAT report, the Kingdom’s overall imports decreased by 3.93 percent in August compared to the same month of the previous year, reaching SR64.78 billion.

The Kingdom imported goods worth SR14.37 billion from China, led by mechanical appliances and electrical equipment valued at SR6.22 billion.

Official data added that Chinese imports of transport equipment and base metal products amounted to SR1.61 billion and SR1.24 billion respectively.

In August, Saudi Arabia also imported plastic and rubber products worth SR862.5 million from the Asian giant, while inbound shipment value of textiles and work of arts stood at SR838.9 million and SR799.4 million, respectively.

On the import side, China was closely followed by the US and India, with incoming shipments from these nations to the Kingdom valued at SR6.22 billion, and SR4.02 billion respectively.

German imports to Saudi Arabia amounted to SR3.05 billion in August, while inbound shipments from the UAE and Italy were worth SR2.63 billion, and SR2.51 billion, respectively.

According to the report, inbound shipments worth SR39.60 billion came to Saudi Arabia via the sea, while imports valued at SR16.87 billion, and SR8.31 billion came via air and land, respectively.

King Abdulaziz Port in Dammam was the primary entry point for goods in August through sea, with imports valued at SR18.48 billion, representing 28.5 percent of the total inbound shipments.

Jeddah Islamic Port handled inbound shipments worth SR13.65 billion, while King Abdullah Sea Port and King Fahd Industrial Sea Port were entry points to goods valued at SR1.24 billion and SR1.02 billion, respectively.

The report revealed that King Khalid International Airport in Riyadh welcomed inbound shipments worth SR8.57 billion in August, followed by King Fahad International Airport and King Abdulaziz International Airport, which handled imports valued at SR4.02 billion, and SR3.99 billion, respectively.

Al-Batha Port handled incoming shipments coming through land valued at SR3.54 billion, while Riyadh Dry Port was the entry point to imports worth SR2.77 billion.