Saudi Arabia’s Non-Oil Exports Show Growth in January 2024
In a promising development, Saudi Arabia’s non-oil exports saw a 0.8 percent increase in January 2024 compared to the same month in 2023, according to official data released by the Kingdom’s General Authority for Statistics.
Diversifying the Economy Away from Fossil Fuels
The total value of non-oil exports, including re-exports, reached SR24 billion ($6.40 billion) in January. This growth is a significant step towards achieving Saudi Arabia’s Vision 2030, which aims to diversify the economy away from fossil fuels.
Decline in Overall Merchandise Exports Due to Oil Trade
Despite the growth in non-oil exports, Saudi Arabia’s overall merchandise exports in January decreased by 10.3 percent to SR95 billion compared to the previous year. This decline was primarily driven by a fall in crude trade, which decreased by 1.3 percent year-on-year.
Oil Output Cuts Impacting Exports
Saudi Arabia’s decision to reduce crude output following OPEC+ agreements led to a decrease in oil exports. To maintain market stability, the Kingdom cut oil output by 500,000 barrels per day in April 2023, with an extension until December 2024. An additional cut of 1 million bpd was implemented in July 2023.
Primary Export Destinations and Import Trends
China emerged as the primary destination for Saudi Arabia’s exports in January, accounting for 15 percent of the total volume. South Korea and Japan followed closely. On the import side, China also led the way, representing 20.4 percent of total trades in January 2024.
Key Entry Point for Imports
GASTAT ranked King Abdulaziz Sea Port in Dammam as the highest entry point for goods into the Kingdom in January, handling 25.3 percent of total imports. This emphasizes the port’s importance in facilitating trade for Saudi Arabia.