Saudi Arabia witnessed a modest enhancement in its non-oil export sector at the start of the year, with a 0.8 percent rise in January compared to the same period the year prior. As per the General Authority for Statistics, the non-oil sector’s value, inclusive of re-exports, hit SR24 billion, or approximately $6.40 billion.
Further insights reveal that non-oil trade made up 35.8 percent of the country’s total trade in January, marking an increase from the 35.1 percent recorded at the same time in the preceding year. This growth is aligned with the kingdom’s ambitious Vision 2030 plan, which aims to reduce the economy’s reliance on oil.
Despite the positive trend in non-oil exports, the nation’s overall merchandise exports experienced a 10.3 percent decline in January year-on-year, totaling SR95 billion. Notably, this downturn was attributed to a 1.3 percent decrease in crude oil trade over the same timeframe.
The slice of the pie taken up by oil in the overall trade mix also diminished, dropping from 77.6 percent in January of the previous year to 74.8 percent in the same month in 2024. This shift comes as Saudi Arabia agreed to curtail crude production as part of the OPEC+ accord to ensure market equilibrium.
In adherence to this agreement, the kingdom cut its oil production by half a million barrels daily in April 2023, a commitment that is projected to extend until December 2024. Moreover, Saudi Arabia voluntarily reduced its oil output by an additional million barrels per day in July, a measure that remained effective until the end of 2023.
Overall merchandise exports saw a 3.6 percent dip compared to December 2023, whereas imports witnessed a 10.3 percent surge. China remained the premier export destination in January, absorbing 15 percent of Saudi exports. This was followed by South Korea and Japan, claiming 10.3 percent and 10.1 percent, respectively.
Additional significant export destinations included India, the UAE, and the US, as well as Bahrain, Egypt, Taiwan, and France. On the import front, China was at the forefront, making up 20.4 percent of the kingdom’s total imports in January 2024. Lastly, the King Abdulaziz Sea Port in Dammam was identified as the major gateway for imports into Saudi Arabia during the month, processing 25.3 percent of the total imports.