Saudi Arabia’s non-oil exports up 12% in December 2023: GASTAT
Saudi Arabia’s non-oil exports up 12% in December 2023: GASTAT /node/2463841/business-economy
Saudi Arabia’s non-oil exports up 12% in December 2023: GASTAT
According to the General Authority for Statistics, the total value of non-oil exports in December reached SR26.5 billion ($7.07 billion), marking an increase from SR23.6 billion in the same period in the preceding year. Shutterstock
Saudi Arabia’s non-oil exports up 12% in December 2023: GASTAT
Updated 21 February 2024
Arab News
RIYADH: Saudi Arabia’s non-oil exports experienced a 12 percent surge in December 2023 compared to the corresponding month of the previous year, official data showed.
According to the General Authority for Statistics, the total value of non-oil exports in December reached SR26.5 billion ($7.07 billion), marking an increase from SR23.6 billion in the same period in the preceding year.
Strengthening the non-oil private sector is of utmost importance for Saudi Arabia as the country actively diversifies its economy away from oil, aligning with the objectives outlined in Vision 2030.
The report highlighted that chemical and allied products constituted the majority of exported non-oil goods in December, accounting for 32.4 percent of total non-oil merchandise exports.
Additionally, GASTAT pointed out that the ratio of non-oil exports to imports rose to 43.8 percent in December, compared to the same month in 2022. This increase was driven by a 12 percent rise in non-oil exports, contrasting with a 7.1 percent decline in imports during the same period.
Meanwhile, Saudi Arabia’s trade balance increased for the second consecutive month in December 2023, reaching SR39 billion.
The Kingdom posted a trade balance of SR28 billion in November, while it stood at SR30 billion and SR41 billion in October and September respectively.
The report also revealed that Saudi Arabia’s total trade balance for 2023 reached SR417 billion.
However, the Kingdom’s overall merchandise exports dipped by 9.47 percent year-on-year in December to SR98.5 billion, driven by a fall in oil exports.
According to GASTAT, oil exports fell by 15.8 percent in December 2023 compared to the same month of the previous year. This dip in oil exports was due to Saudi Arabia’s decision to reduce crude output in accordance with an agreement by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.
To maintain market stability, the Kingdom, in April 2023, reduced oil output by 500,000 barrels per day, which is now extended until the end of December 2024.
Saudi Arabia also pledged an additional oil output cut of 1 million bpd in July, which continued until the end of December 2023.
China was Saudi Arabia’s primary merchandise trading partner in December, with exports to the Asian nation amounting to SR14.6 billion, or 14.8 percent of the total.
China was closely followed by Japan and India, with SR10.9 and SR8.7 billion of the total exports, respectively.
South Korea, the UAE, the US were also featured in the top 10 destinations for Saudi exports, along with Egypt, Malaysia, Bahrain, and Singapore.
On the import side, China held the lead, accounting for 21 percent or SR12.47 billion in imports in December 2023.
Jeddah Islamic Port ranked as the highest entry point for goods into Saudi Arabia in December, with a value of SR14.8 billion, constituting 24.6 percent of the overall imports.
In another report, which covered the overall statistics for the fourth quarter of 2023, GASTAT noted that Saudi Arabia’s merchandise exports decreased by 14.4 percent to SR297.9 billion compared to the same period in 2022.
GASTAT revealed that a dip in oil exports drove this fall, which also attributed to Saudi Arabia’s decision to reduce the crude output.
PIF announces pricing of $1.25 billion international sukuk offering
The sukuk will be listed on the London Stock Exchange’s International Securities Market
PIF’s Ahmed Alrobayan said: ‘The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile’
Updated 12 sec ago
Arab News
RIYADH: The Public Investment Fund on Thursday announced the pricing of a $1.25 billion sukuk offering, with the proceeds of the dollar-denominated offering to be used for PIF’s general corporate purposes.
The seven-year sukuk was more than 6.5 times oversubscribed, with orders exceeding $9 billion, according to a media statement.
The sukuk will be listed on the London Stock Exchange’s International Securities Market as part of PIF’s international sukuk issuance program.
Ahmed Alrobayan, head of public markets, global capital finance, at PIF, said: “The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile, along with its role as a key driver of Saudi Arabia’s economic transformation.”
The transaction represents a continuation of the established and diversified financing strategy, which draws strong support from international investors, Alrobayan said.
PIF’s long-term capital-raising strategy includes a diverse range of instruments, including sukuk and bond programs.
PIF has completed its inaugural murabaha credit facility since earlier this year, and last August renewed a revolving credit facility.
PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.
Qassim region sees 25% growth in business sector over 7 years: Ministry of Commerce
Updated 01 May 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Qassim region has experienced 25 percent growth in its business sector over the past seven years, reflecting increased economic activity and contributing to the Kingdom’s goal of balanced development.
The number of commercial records in the central region rose from 68,000 in 2018 to 85,000 by the end of the first quarter of this year, the Ministry of Commerce reported in a post on its official X account.
The latest figures showed that the Qassim region saw 1,342 e-commerce registrations, contributing to the overall 6 percent year-on-year increase in the sector.
The increase comes as the Kingdom pushes ahead with its economic diversification strategy, aiming to increase the private sector’s share of the gross domestic product from 40 percent to 65 percent by 2030.
This effort is reflected in a 60 percent increase in commercial registrations in 2024 across the Kingdom, with a total of 521,969 records issued, according to the Ministry of Commerce.
Business registrations continued to rise in early 2025, with 154,638 commercial records issued in the first quarter alone, representing a 48 percent year-on-year increase.
The ministry report highlighted “critical sectors” for the Kingdom include technology, tourism, and entertainment, as well as research and development.
The report added: “These sectors offer businesses significant opportunities to grow and expand partnerships.”
According to the Ministry of Commerce, a commercial registration certificate verifies a business’s official status within Saudi Arabia. These records are essential for operating in the Kingdom, as they are required to open a bank account, hire employees, sign contracts, and conduct other business activities.
The data also showed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.
This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system, including the introduction of the new Commercial Register Law and Trade Names Law.
Subsidiary registers have also been abolished, meaning that one commercial register now covers all businesses, and companies no longer need to specify the city of registration, as a single enrollment is now valid nationwide.
The bulletin also revealed that 45 percent of the total commercial records issued to institutions are owned by women.
In an interview with Arab News in April on the sidelines of the Human Capability Initiative held in the capital, Zeger Degraeve, dean of Prince Mohammed Bin Salman College of Business & Entrepreneurship, emphasized that ensuring balanced regional development is crucial as Saudi Arabia accelerates its economic diversification efforts under Vision 2030.
The rise in business registrations in Qassim is aligning with its growing industrial sector, supported by its rich mineral resources, which are a key focus of Saudi Arabia’s Vision 2030 diversification plan.
The region’s SR122 billion ($32.5 billion) in untapped mineral wealth, including significant deposits of gold, copper, zinc, and phosphate, contributes to the area’s industrial development, which has seen substantial growth.
Closing Bell: Saudi main index closes in red at 11,543
Updated 01 May 2025
Nadin Hassan
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 127.90 points, or 1.10 percent, to close at 11,543.67.
The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 52 stocks advanced, while 193 retreated.
The MSCI Tadawul Index decreased by 16.97 points, or 1.14 percent, to close at 1,471.91.
The Kingdom’s parallel market Nomu also dipped, losing 147.4 points, or 0.52 percent, to close at 28,129.77. This came as 32 stocks rose, while 41 fell.
The best-performing stock on the main index was Saudi Printing and Packaging Co., with its share price surging by 6.18 percent to SR13.06.
Saudi Cement Co. saw the steepest decline on the main index in Thursday’s session, with its share price slipping 5.75 percent to SR43.40.
In a bourse filing, Banque Saudi Fransi announced that it has completed its $650 million offering of US dollar-denominated Additional Tier 1 capital notes.
The issuance, conducted under the bank’s Additional Tier 1 Capital Note Programme, was offered to eligible investors in Saudi Arabia and internationally, with settlement set for May 7.
The notes were issued at a return of 6.375 percent per annum and are perpetual in nature, with a call option exercisable after six years. A total of 3,250 notes were issued, each with a par value of $200,000.
According to the bank, the instruments may be redeemed prior to the scheduled call date under certain conditions outlined in the base offering circular.
The notes will be listed on the International Securities Market of the London Stock Exchange and were offered in reliance on Regulation S under the US Securities Act of 1933, as amended.
The bank’s share price traded 0.54 percent lower on the main market to reach SR18.30.
Halwani Bros. Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR11.51 million, a 4.58 percent decline compared to the previous quarter last year.
The company attributed the decrease to higher general and administrative expenses, as well as increased selling and distribution costs. It also said that this was due to an increase in other income as a result of the reversal of provisions that are no longer needed.
Halwani Bros. Co’s share price traded 0.52 percent lower on the main market to reach SR47.95.
In the first quarter of 2025, Fourth Milling Co’s net profit rose 25.154 percent quarter on quarter to SR52.6 million, according to a filing on the stock exchange.
The group attributed the increase to sales growing by 2 percent, amounting to an increase of SR3.4 million, and zakat and tax payments decreasing by SR1.4 million.
The company’s share price traded 0.25 percent lower on the main market to reach SR3.97.
Saudi Steel Pipe Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR69 million, an 81.57 percent surge compared to the previous quarter.
The company attributed the increase to higher volume, improved efficiency and product mix of products sold, and administrative expenses decreased to SR14 million in the first quarter 2025 from SR19 million in the fourth 2024.
The company’s share price traded 0.18 percent higher on the main market to reach SR56.10.
Arab Monetary Fund reports 4.3% annual gains across region’s stock markets
Updated 01 May 2025
Miguel Hadchity
RIYADH: Stock markets across the Middle East and North Africa began 2025 on a strong note, with the Arab Monetary Fund Composite Index rising 4.37 percent year over year, according to a new report.
On a quarterly basis, the index — which tracks the performance of 16 Arab stock markets— posted a 1.55 percent increase, reflecting investor confidence amid shifting global monetary policy and geopolitical headwinds.
The figures were released as part of the AMF’s quarterly bulletin, which noted that sectors such as banking, real estate, and basic materials, as well as transportation, and financial services performed well, contributing to gains in several markets.
The strong performance comes amid reforms across Arab markets to deepen liquidity and attract foreign investment. Saudi Arabia’s Capital Market Authority is advancing its 2024-2026 strategy to elevate its global market position and enhance investor safeguards, while Abu Dhabi Securities Exchange recently launched the “New ADX Group”— a market infrastructure overhaul aligned with the emirate’s long-term economic vision.
In its report, the AMF said: “This performance unfolded amid a tightening global monetary policy environment during the first quarter of 2025, as most central banks, both globally and across the Arab region, adopted a cautious approach to monetary easing following the US Federal Reserve’s decision to keep interest rates steady.”
The fund highlighted that while some Arab exchanges saw notable gains, others experienced declines.
Casablanca Stock Exchange led the region with a 20.19 percent rise in its index, driven by strong performances in the banking and telecommunications sectors.
Tunisia and Kuwait followed with increases of 10.25 percent and 9.66 percent, respectively, while Egyptian Exchange and Amman Stock Exchange posted gains of 7.68 percent and 6.12 percent.
However, not all markets fared as well. Saudi Stock Exchange, the largest in the region by market capitalization, saw a slight decline of 0.10 percent, while Abu Dhabi Securities Market and Palestine Exchange recorded drops of 0.53 percent and 0.46 percent, respectively.
Beirut Stock Exchange faced the steepest decline, plummeting by 12.69 percent, attributed to ongoing economic challenges in Lebanon.
Despite Lebanon’s ongoing economic crisis since 2019, recent data from the Central Administration of Statistics shows signs of easing inflationary pressures.
The annual inflation rate dropped sharply to 14.2 percent in March, down from 70.36 percent a year earlier — a notable improvement attributed largely to the stabilization of the Lebanese pound, which has held steady at approximately 89,500 Lebanese pounds per US dollar since mid-2023.
Casablanca Stock Exchange led the rises across the region. Shutterstock
Market capitalization and trading activity
The total market capitalization of Arab stock markets decreased by 1.45 percent in the first quarter of 2025, reaching $4.32 trillion, down by $63.77 billion compared to the last quarter of 2024.
This decline was primarily due to significant losses in the Abu Dhabi and Saudi markets, which shed $18.23 billion and $75.06 billion, respectively.
In contrast, Casablanca Stock Exchange added $21.26 billion to its market value, while Kuwait Stock Exchange saw an increase of $13.77 billion.
Trading values also reflected this mixed performance. Total trading value across Arab markets fell by 2.60 percent to $250.53 billion.
Kuwait Stock Exchange stood out with a 45.09 percent surge in trading value, reaching $21.95 billion. This strong performance builds on 2024’s momentum, when 113 out of 142 listed companies reported profits, as highlighted in an Al-Shall Consulting report.
Meanwhile, Abu Dhabi Securities Market saw a 31 percent drop in trading value.
Sectoral performance and global influences
Global factors played a significant role in shaping market trends, with sectors scuh as insurance, consumer services, and media faced declines. “The cautious monetary policies of most global and Arab central banks, following the US Federal Reserve’s decision to stabilize interest rates, positively impacted lending and financing stability,” the study stated.
However, it also warned that “the escalation of US trade policies, including new tariffs, has raised concerns about slowing international trade and rising production costs, which could directly affect global growth expectations, inflation rates, and investor confidence.”
Geopolitical tensions and fluctuations in oil prices further influenced market dynamics. “Oil prices experienced significant volatility during the first quarter of 2025 due to escalating geopolitical tensions and increased production from some countries, impacting markets closely tied to oil and affecting liquidity and the performance of the energy sector,” the AMF explained.
Individual market highlights
Saudi Stock Exchange is the largest in the region by market capitalization. Bloomberg
Saudi Stock Exchange, which accounts for 61.13 percent of the total market capitalization of Arab exchanges, saw its value drop to $2.64 trillion. The media and utilities sectors were among the worst performers, declining by 31 percent and 13 percent, respectively.
Despite the recent dip, Saudi Arabia’s capital markets remain a regional powerhouse.
Speaking at February’s Capital Markets Forum in Riyadh, Saudi Exchange CEO Mohammed Al-Rumaih said: “2024 was a great year for us. We did more than 55 listings; around 45 in the equity market, 13 on the main market, which doubled compared to 2023, and the rest in the parallel market. It put us as No.1 not just in the region, but globally as the fastest-growing exchange in the world.”
Egyptian Exchange rose by 7.68 percent, with trading volumes surging by 27.28 percent, reflecting renewed investor confidence.
Kuwait Stock Exchange outperformed other Gulf markets, with its index climbing 9.66 percent, supported by robust activity in the banking sector.
Casablanca Stock Exchange’s 20.19 percent jump was fueled by gains in electricity, mining, and telecom stocks, with firms like Attijariwafa Bank and Maroc Telecom leading the charge.
Risks and outlook
The report cautioned that several risks could destabilize Arab and global markets in the coming months.
“Potential risks include trade-related pressures linked to tariffs, a possible global economic slowdown, rising inflation, fluctuations in oil prices, high debt levels in some Arab economies, and geopolitical tensions,” it stated.
Despite the relative stability of Arab exchanges in the inaugural quarter of 2025, these factors could pose challenges to future performance.
The AMF also emphasized the importance of continued cooperation among Arab markets to enhance integration and support economic growth in the region.
“The Fund hopes that these efforts will contribute to developing cooperation and integration among Arab financial markets, serving common interests and promoting economic growth in the Arab region,” the analysis concluded.
Peru keen to boost agricultural, food exports to Saudi Arabia, foreign minister says
Updated 01 May 2025
REEM WALID
RIYADH: Peru is seeking to boost exports of agricultural and food industry products to Saudi Arabia while leveraging the tax incentives and benefits available to foreign investors, a top official said.
During a meeting in Riyadh with Federation of Saudi Chambers board member Emad Sadad Al-Fakhri, Peru’s Minister of Foreign Affairs Elmer Schialer Salcedo also invited investors from the Kingdom to an upcoming agricultural products exhibition scheduled for September, the Saudi Press Agency reported.
Salcedo explained that while South American exports to Saudi Arabia total about $3.8 billion annually, Peru accounts for only $70 million of that sum.
The newly released SPA statement said: “Al-Fakhri briefed the Peruvian delegation on recent developments in the Saudi economy and the Kingdom’s efforts to strengthen its economic partnerships, including with Peru. He underscored Saudi Arabia’s competitive advantages and investment opportunities.”
It added: “Al-Fakhri also stressed the importance of enhancing bilateral cooperation between the federation and its Peruvian counterpart through signed agreements and a joint business council. He proposed increasing the exchange of trade delegations, organizing economic forums, and exploring investment prospects in sectors such as tourism, trade, and agriculture.”
Peru opened an embassy in Riyadh in 2012, and the Kingdom followed suit in Lima in 2013, marking a milestone in their relations. Since then, economic and political ties have grown progressively, reflected in trade exchanges that have reached a peak of $188 million in recent years.
The minister highlighted opportunities for investors from the Kingdom across several sectors, adding that economic protections are “reinforced by a legal framework that guarantees equal treatment for foreign investors and adherence to international investment protection mechanisms.”
In energy, key initiatives include the petrochemical plant project, the Southern Peru Integrated Gas Transportation System, and the 2025–2034 Transmission Plan.
In mining, major projects such as El Galeno and Los Chancas stand out, while infrastructure developments include the Andean Longitudinal Highway, the Ancon Industrial Park, and the Ilo Desalination Plant.
These large-scale undertakings offer opportunities for Saudi investors to contribute to Peru’s economic transformation while ensuring sustainable and profitable returns.
“Peru warmly welcomes Saudi businesses, investors and policymakers to discover the vast opportunities that this dynamic relationship can offer. Together, we can open new economic frontiers and lay the foundation for a future of shared prosperity, innovation and enduring cooperation,” said Salcedo.
