Saudi Arabia has witnessed a 3.3 percent increment in non-oil exports during the first quarter of 2024, propelled by a notable surge in re-export activities, as reported by the General Authority for Statistics. The national non-oil exports saw a slight decline of 5.2 percent, yet re-exported goods experienced a substantial jump of 31.5 percent in the same timeframe.
The Kingdom is cementing its status as a critical logistical hub, aligning with the Vision 2030 objectives to diversify its economy. Strategically positioned at the juncture of three continents, Saudi Arabia is pumping resources into enhancing its transportation and logistics infrastructure.
Significant initiatives like the expansion of key ports and the creation of logistic zones, including the King Salman Energy Park, aim to improve the efficiency of supply chains and facilitate smoother movement of goods. Additionally, the country has been a host to various international gatherings, including the Supply Chain and Logistics Conference, to draw investors and discuss sector advancements.
In March 2024, merchandise exports climbed by 4.9 percent, showcasing the resilience of Saudi Arabia’s export sector amidst global economic challenges. Notably, China has become a major destination for Saudi exports, with a substantial share of 14.9 percent in the first quarter, increasing to 16.4 percent in March.
China also topped the list of import sources for the Kingdom in March, accounting for 21.2 percent of total imports, followed by the US and the UAE. Although there was a downtrend, chemical products still made up a significant part of non-oil exports, indicating Saudi Arabia’s strategic emphasis on its petrochemical industry as a cornerstone of Vision 2030.
GASTAT’s recent release illustrated that non-oil exports and re-exports rose by 2.9 percent from February to March but showed a slight dip of 0.8 percent from March 2023. Re-exported goods alone witnessed a 17.6 percent annual increase in March. In the first quarter, oil exports’ share in the total export value declined, while imports escalated by 6.4 percent.
Comparing the first quarter of 2024 with the same period in the previous year, both merchandise exports and non-oil exports, including re-exports, fell marginally by 1.4 percent and 0.2 percent respectively, whereas imports saw a 0.3 percent decrease. This resulted in a 3.8 percent drop in the merchandise trade balance surplus.
Despite a 5.9 percent decline in merchandise exports in March, driven by a 7.3 percent fall in oil exports, imports saw a 1 percent rise. This led to a 17.2 percent reduction in the merchandise trade balance surplus compared to March 2023. Additionally, the ratio of non-oil exports (including re-exports) to imports slightly decreased due to a significant rise in imports.
For the first three months of the year, the leading import sources were China, the US, and the UAE, contributing to 63.4 percent of total imports. King Abdulaziz Sea Port in Dammam was the primary import gateway, with other key ports including Jeddah Islamic Port and several major international airports contributing to a major portion of the imports.
Primary imports comprised machinery, electrical equipment, and parts, making up 24.1 percent of the total, a 21.4 percent increase from the previous year. These statistics reinforce the pivotal role of major Saudi ports in facilitating international trade.
