Saudi Arabia Sees 4.4% Surge in Non-Oil Exports in February
In a positive sign for the Saudi economy, non-oil exports, including re-exports, experienced a significant increase of 4.4 percent in February compared to the same period in 2023, according to official data released by the General Authority for Statistics.
Driving Factors Behind the Surge
The total value of non-oil exports reached SR21.86 billion ($5.83 billion), showing a rise from SR20.93 billion in the previous year. The boost in non-oil shipments was mainly fueled by an 8.3 percent increase in the exports of rubber and plastic products, making up 24.1 percent of the total exports.
Importance of Diversification Efforts
It is crucial for Saudi Arabia to strengthen the non-oil private sector as the country aims to diversify its economy and reduce dependence on oil. Despite a 4.1 percent decrease in non-oil exports (excluding re-exports), the value of re-exported goods surged by 32.3 percent in February.
Challenges in the Oil Sector
On the other hand, the report highlighted a 2 percent decrease in overall merchandise shipments in February, attributed to a 3.8 percent drop in oil exports. This decline was a result of the Kingdom’s decision to reduce crude output in alignment with OPEC+ agreements.
Key Trading Partners and Ports
China emerged as Saudi Arabia’s top trading partner in February, with significant exports to the Asian country. India, Japan, South Korea, the UAE, Poland, Egypt, the US, and France were also among the top destinations for Saudi exports. On the import side, China remained a dominant player, accounting for nearly 20% of exchanges in February.
The King Abdulaziz Sea Port in Dammam stood out as the primary entry point for goods into Saudi Arabia, constituting a significant portion of overall exports.