Saudi Arabia’s non-oil exports experienced a significant surge in December 2023, indicating progress in the country’s economic diversification efforts. Official data from the General Authority for Statistics revealed a 12 percent increase in non-oil exports compared to the same period in the previous year, reaching SAR26.5 billion ($7.07 billion). Strengthening the non-oil private sector remains a priority for Saudi Arabia as it endeavors to reduce reliance on oil revenues and align with the objectives outlined in Vision 2030.
The report highlighted that chemical and allied products constituted the majority of Saudi Arabia’s non-oil exports in December, comprising 32.4 percent.
Trade balance
Saudi Arabia’s trade balance witnessed growth for the second consecutive month in December 2023, reaching SAR39 billion. However, overall merchandise exports experienced a decline of 9.47 percent year-on-year, primarily due to a decrease in oil exports. Saudi Arabia’s ratio of non-oil exports to imports rose to 43.8 percent, driven by a rise in non-oil exports and a decline in imports during the same period.
Impact of oil output cuts
The decline in oil exports in December 2023 was attributed to Saudi Arabia’s decision to reduce crude output in compliance with OPEC+ agreements. The Kingdom implemented a reduction of 500,000 barrels per day in April 2023, extended until December 2024. It also implemented an additional cut of 1 million barrels per day from July to December 2023. These measures aimed to maintain market stability amid global oil market dynamics.
Key trading partners
China emerged as Saudi Arabia’s primary merchandise trading partner in December, with significant exports to the Asian nation amounting to SAR14.6 billion. Japan and India followed closely, indicating the diverse export destinations for Saudi goods.
On the import side, too, China took the lead, accounting for 21 percent of total imports, with Jeddah Islamic Port being the primary entry point for goods into the Kingdom.
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Fourth quarter insights
GASTAT’s report covering the overall statistics for the fourth quarter of 2023 highlighted a 14.4 percent decrease in Saudi Arabia’s merchandise exports compared to the same period in 2022. This decline was predominantly driven by a reduction in oil exports, underscoring the significant impact of production cuts on export figures.
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