RIYADH: Saudi Arabia’s non-oil exports reached SR79.48 billion ($21.17 billion) in the third quarter of 2024, a rise of 16.76 percent compared to the same period in 2023, according to official data. 

As reported by the General Authority for Statistics, the Kingdom exported non-oil goods worth SR19.58 billion to the UAE, followed by India and China at SR6.78 billion and SR6.48 billion.

Chemical products led Saudi Arabia’s non-energy exports in the third quarter, accounting for 25.5 percent of total shipments, marking a 5.3 percent annual rise. Plastic and rubber products followed, comprising 24.9 percent of the total, with an 8.9 percent increase compared to the third quarter of 2023. 

Strengthening the non-oil private sector is a key objective under Saudi Arabia’s Vision 2030 as the Kingdom works to diversify its economy and reduce reliance on crude oil revenues. 

“The ratio of non-oil exports (including re-exports) to imports increased to 36.6 percent in the third quarter of 2024 from 34.9 percent in the third quarter of 2023. This was due to a 16.8 percent increase in non-oil exports and an 11.4 percent increase in imports over that period,” said GASAT.  

In October, Moody’s projected the Kingdom’s non-hydrocarbon real gross domestic product would grow between 5 percent and 5.5 percent from 2025 to 2027, driven by increased government spending. 

The International Monetary Fund projected the Saudi economy would expand by 4.6 percent in 2025, supported by diversification efforts to strengthen the non-oil private sector. 

However, GASTAT highlighted that overall merchandise exports decreased by 7.3 percent year on year in the third quarter, primarily due to a 14.9 percent drop in oil exports. 

Consequently, oil exports as a share of total exports fell to 71.3 percent in the third quarter from 77.3 percent recorded during the same period last year. 

To stabilize the market, Saudi Arabia implemented a production cut of 500,000 barrels per day in April 2023, a reduction extended until December. 

Key trade partners 

China remained Saudi Arabia’s top export destination in the third quarter, receiving SR41.94 billion worth of goods. Japan and South Korea followed at SR25.62 billion and SR25.50 billion, respectively, while India received SR24.35 billion. 

GASTAT data revealed that imports to the Kingdom increased by 11.4 percent year on year in the third quarter, reaching SR217.25 billion, while the nation’s surplus of the merchandise trade balance decreased by 43.4 percent.  

In the third quarter, China accounted for the largest share of imports at SR53.78 billion, followed by the US and India at SR17.58 billion and SR11 billion, respectively.  

King Abdulaziz Sea Port in Dammam was the primary entry point for goods in the third quarter, with imports valued at SR64.88 billion, representing 29.9 percent of the total inbound shipments.  

Among the other major terminals of entry for imports was Jeddah Islamic Sea Port, which handled 20.1 percent of the incoming shipments, followed by King Khalid International Airport in Riyadh and King Abdulaziz International Airport, which handled 12.6 percent and 6.4 percent of the imports to the Kingdom.  

September figures 

In a separate report, GASTAT revealed that Saudi Arabia’s non-oil exports increased by 22.8 percent year on year in September, reaching SR25.95 billion.  

The authority revealed that the Kingdom sent non-energy goods valued at SR6.54 billion to the UAE in September, while India and China received inbound shipments worth SR2.35 billion and SR1.73 billion, respectively.  

Plastic and rubber products comprised 25.7 percent of non-oil exports in September, a 19.5 percent annual rise, while chemical products accounted for 25.3 percent, marking a 4.4 percent increase. 

The ratio of non-oil exports to imports rose to 37.1 percent in September, compared to 34.8 percent during the same month in 2023. 

Despite the growth in non-oil exports, overall merchandise exports dropped 14.9 percent in September due to a 24.5 percent decline in oil exports. Consequently, the share of oil exports in total exports fell from 79.7 percent in September 2023 to 70.7 percent in September 2024. 

China remained the leading trade partner, receiving SR13.91 billion in exports, followed by Japan at SR7.98 billion and the UAE at SR7.49 billion. 

Other major destinations for Saudi Arabia’s exports include India, South Korea, the US, and Egypt, as well as Singapore, Bahrain and Poland.  

In September, Saudi Arabia’s exports to the Gulf Cooperation Council countries stood at SR12.08 billion, while the value of outbound shipments to Islamic non-Arab nations was SR6.71 billion.  

According to GASTAT, the Kingdom’s imports increased by 15 percent year on year in September, reaching SR69.88 billion, while the surplus of the merchandise trade balance decreased by 56.9 percent during the same period.  

China held the first position in the Kingdom’s imports, constituting 25.8 percent of total imports in September, valued at SR17.99 billion.  

In September, Saudi Arabia received incoming shipments valued at SR5.39 billion and SR3.45 billion from the US and Germany, respectively.  

The report revealed that the Kingdom handled inbound shipments valued at SR19.65 billion or 28.1 percent of the overall imports at the King Abdulaziz Sea Port in Dammam in September.  

Jeddah Islamic Sea Port handled 17.9 percent of the overall inbound shipments, while King Khalid International Airport managed 13.1 percent of the total incoming goods.  

Saudi Arabia’s non-oil sector is a key focus of its Vision 2030 plan to reduce reliance on oil and diversify the economy.  

Initiatives like giga-projects, renewable energy investments, and expanding industries such as manufacturing, logistics, and tourism aim to drive growth and boost job creation.  

These efforts are strengthening the Kingdom’s global trade position and attracting foreign investment, with the non-oil sector playing an increasingly vital role in its economic transformation. 

RIYADH: Saudi Arabia can attract global investments and successfully diversify its economy thanks to the Kingdom’s abundant natural resources and youthful workforce, said BlackRock Investment Institute.

In its latest report, the asset management firm said Saudi Arabia offers substantial opportunities across public and private markets, though success will depend on the progress of governance, regulatory improvements, and labor market reforms.

The Kingdom is currently embarking on an economic diversification journey known as Vision 2030 by strengthening the non-oil private sector and reducing its decades-long dependence on oil revenues.

With its predominantly young population and labor reforms, the Kingdom reduced the unemployment rate among Saudi nationals to 7.1 percent by the end of the second quarter of 2024, representing a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.

By the end of the second period of the year, joblessness among Saudi females also witnessed a sharp quarterly decline of 1.4 percentage points, reaching 12.8 percent.

In terms of natural resources, Saudi Arabia holds abundant mineral wealth estimated at $3 trillion, and Vision 2030 aims to turn the mining sector into the Kingdom’s third pillar of economy.

“Saudi Arabia stands at the crossroads of economic transformation. Unlike many developed economies, we think it benefits from low debt levels, ample energy resources, and a young, expanding workforce — a combination that supports long-term economic growth and creates opportunities in infrastructure and urban development,” said BlackRock.

It added: “However, realizing these opportunities hinges on sustained investment. Historical data shows that Saudi Arabia is already an outlier in terms of population growth and has room to increase investment further.”

A recent report released by the International Monetary Fund also echoed similar views, and said that the Kingdom is expected to witness economic growth of 1.5 percent in 2024 and 4.6 in 2025, driven by activities in the non-oil sector.

In October, the World Bank also projected that the economy of Saudi Arabia will grow by 1.6 percent this year and 4.9 percent in 2025.

Capital investments

According to BlackRock, Saudi Arabia has ramped up capital investments, with about $780 billion invested over the past three years, fueled by a bank lending boom and significant public spending.

The report added that Saudi Arabia is successfully leveraging domestic and foreign private financing, while equity and fixed-income markets are developing rapidly through the rising number of initial public offerings and bond issuances in the Kingdom.

A report released in July by the Kuwait Financial Center, also known as Markaz, revealed that the Kingdom led the Gulf Cooperation Council’s initial public offering market in the first half of 2024, raising $2.1 billion in what was an annual increase of 141 percent.

Another report released by Markaz in October revealed that Saudi Arabia raised $512 million from IPOs in the third quarter.

“Building a large, liquid local-currency corporate bond market is key to boosting non-bank financing across corporate bonds, infrastructure debt, and mortgage-backed securities,” said BlackRock.

Attracting investments

BlackRock revealed that Saudi Arabia’s Vision 2030 aims to establish the Kingdom as a leading hub for infrastructure investment.

The Kingdom’s National Investment Strategy seeks to attract $3.3 trillion over the next decade, spanning sectors from energy to health care to tourism.

“The investments are set to cover energy, water, transportation, logistics, digitalization, and services like waste recycling. The transformation involves three main shifts: transitioning to renewable energy, boosting private sector activity, and expanding non-oil sectors like household spending and tourism,” added BlackRock.

According to the report, the Shareek program launched in 2021 could play a crucial role in fulfilling the investment targets of Saudi Arabia.

Through this initiative, the Kingdom targets $1.3 trillion in funding, representing 40 percent of the Vision 2030 goal.

Foreign direct investment, currently a small share of the Kingdom’s GDP, is also targeted to provide 15 percent of Vision 2030’s total investment.

The report added that regulatory improvements such as simplifying business licensing, reducing red tape, enhancing transparency, and introducing investor rights measures are key to elevating investments in the Kingdom.

“Becoming a major investment destination requires broad economic and societal changes, stronger governance frameworks, and regional security assurances to attract capital,” said the analysis.

It added that global investors will also need confidence in regional stability before committing significant capital, as geopolitical tensions remain a major concern determining the future economic growth in the region.

Reliance on oil

According to the report, Saudi Arabia’s future economic growth and diversification plans will not be without any hurdles, as oil revenues have direct impacts on the country’s progress.

“Saudi Arabia’s economic trajectory remains heavily reliant on oil revenue, making it vulnerable to shifts in global energy markets. A decline in oil prices – potentially influenced by increased US production or a slowdown in global demand – could challenge its reform agenda and economic resilience,” the analysis said.

On a positive note, Blackrock added that the Kingdom is aiming to strengthen its position as a low-cost oil and gas producer.

“The BlackRock Investment Institute Transition Scenario sees rising global oil and gas demand over the next decade, with declines approaching 2050. Saudi Arabia’s low-cost, low-emission production positions it to maintain or grow market share across various demand scenarios,” said the report.

It added: “Diversifying energy exports through natural gas/LNG could enhance its competitive edge, though an accelerated low-carbon transition could pressure oil prices.”

According to the analysis, Saudi Arabia is also making significant efforts to reduce greenhouse gas emissions.

The report said that the Kingdom is planning to shift power generation from 40 percent oil and 60 percent gas to an equal mix of gas and renewables by 2030.

“Saudi Arabia’s solar installation costs are 40 percent lower than the global average, boosting energy security, reducing emissions, and freeing up oil for export. Investments in carbon capture and hydrogen production could further support decarbonization,” said BlackRock.