Local, Int’l Partnerships Enhance Market Access for Saudi Products

Saudi EXIM Bank participated in the Riyadh International Industry Week 2024 (Photo: Turki Al-Aqili)
Saudi EXIM Bank participated in the Riyadh International Industry Week 2024 (Photo: Turki Al-Aqili)
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Local, Int’l Partnerships Enhance Market Access for Saudi Products

Saudi EXIM Bank participated in the Riyadh International Industry Week 2024 (Photo: Turki Al-Aqili)
Saudi EXIM Bank participated in the Riyadh International Industry Week 2024 (Photo: Turki Al-Aqili)

The Riyadh International Industry Week 2024 concluded on Thursday with the signing of a number of local and international partnerships and agreements, with the aim to promote the access of Saudi products to global markets.
The Saudi Exports Development Authority signed a memorandum of understanding with the Ministry of Industry and Mineral Resources, with the aim to support local industries and facilitate their access to international markets.
The MOU highlights potential areas of cooperation and seeks to encourage firms that are listed in the Future Factories Program to export their products worldwide.
Meanwhile, Alod Company (a Saudi global shipping gateway) signed an agreement with the National Parcel Stations Network Company (Parcelat) to enable its customers to receive and deliver shipments around the clock.
Alod also signed an agreement with Camion aimed at enabling the latter’s customers to automate international and local shipping operations.
Meanwhile, the Saudi Export and Import Bank was able to find credit solutions exceeding SAR 10 billion ($2.6 billion) during the first 4 months of 2024.
The CEO of the Saudi Export-Import Bank, Eng. Saad Al-Khalab, said that the bank seeks to achieve a fourfold increase of the 2024 target number by 2030.
The Saudi Export and Import Bank, which was established in February 2020, aims to promote the development and diversification of national non-oil exports and increase their competitiveness, by providing export financing, guarantee, and export credit insurance services with competitive advantages.
Speaking to Asharq Al-Awsat on the sidelines of the Riyadh International Industry Week 2024, Al-Khalab said that the bank offered many products that help Saudi exporters expand globally and reduce their export risks, which facilitates their access to new markets.

 



Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
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Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)

Saudi Arabia’s non-oil exports have reached their highest levels since the second quarter of 2022, continuing to grow at a steady pace. By the end of the third quarter of this year, non-oil exports, including re-exports, totaled SAR 80 billion (USD 21 billion), reflecting a 16.8% increase compared to the same period in 2023.

This growth aligns with the goals of Vision 2030, which aims to diversify Saudi Arabia’s economy and reduce reliance on oil revenues. Credit rating agency Moody’s recently upgraded Saudi Arabia’s credit rating to AA3 from A1 with a stable outlook, citing the Kingdom’s ongoing economic diversification and the strength of its non-oil private sector. Moody’s projects the non-oil private sector’s GDP to grow by 4–5% annually in the coming years.

According to data from Saudi Arabia’s General Authority for Statistics, non-oil national exports (excluding re-exports) grew by 7.6% in the third quarter of 2024, reaching SAR 57 billion (USD 15.1 billion). Re-exports saw a remarkable surge of 48.4%, amounting to SAR 23 billion (USD 6.1 billion).

In contrast, total merchandise exports dropped by 7.7% to SAR 276 billion (USD 73.5 billion) due to a 14.9% decline in oil exports. As a result, the share of oil exports in total exports decreased from 77.3% in the third quarter of 2023 to 71.3% this year.

Chemical industry products accounted for 25.5% of non-oil exports, growing by 5.3% compared to the same period last year. Plastics, rubber, and their derivatives followed closely, representing 24.9% of non-oil exports, with an 8.9% increase from the third quarter of 2023.

China remained Saudi Arabia’s top export destination, accounting for 15.2% of total exports in the third quarter of 2024. Japan and South Korea followed, at 9.3% and 9.2%, respectively. Other major destinations included India, the UAE, the US, Poland, Egypt, Bahrain, and Taiwan. Together, these ten countries accounted for 66.4% of Saudi exports.

Experts emphasize that the growth in non-oil exports strengthens Saudi Arabia’s economy and reflects the success of its diversification strategy under Vision 2030.

Shura Council member Fadhel Al-Buainain highlighted the importance of considering the scale of Saudi non-oil exports during the third quarter of 2024. He emphasized two key aspects of Saudi non-oil exports.

First, the 16.8% growth achieved is a significant leap that boosts the Saudi economy’s ability to continue strengthening non-oil exports, which are a focal point of Vision 2030 and its economic diversification goals.

Second, he said the 48.4% increase in the value of re-exported goods represents substantial growth, reflecting the Kingdom’s potential to play a pivotal role in regional re-export activities. This, in turn, can stimulate exports and position Saudi Arabia as a global logistics hub.

He further noted that the increase in export value compared to the second quarter of this year, amounting to SAR 37.2 billion (USD 9.92 billion) or 15.6%, indicates sustained and accelerating export growth.

Al-Buainain believes that Saudi Arabia’s ports on the Red Sea and the Arabian Gulf are well-equipped to play a central role in re-exporting, supported by free economic zones, robust infrastructure, and a well-established transportation and logistics network.

He also stated that the improvement in global demand, particularly in the petrochemical sector, which accounted for the largest share of exports, contributed to this growth.

However, the global economic conditions may face certain challenges that will reflect negatively on global demand, he remarked, stressing the importance of diversifying exports.

Dr. Osama Al-Obaidi, an international commercial law consultant and professor, told Asharq Al-Awsat that the significant increase in non-oil exports in the third quarter of this year compared to the same period in 2023 is linked to the growth in petrochemical exports, particularly plastics, rubber, and their derivatives.

He explained that this rise reflects the effectiveness of Saudi Arabia’s economic diversification efforts and its reduced reliance on oil as a sole income source, in line with Vision 2030.

It also highlights the success of the substantial investments made by the government to develop ports and logistics services, such as King Abdulaziz Port in Dammam and Jeddah Islamic Port.

Moreover, improvements in domestic, regional, and international airports, along with initiatives to promote local industries—particularly chemicals, food products, pharmaceuticals, and other high-demand goods in foreign markets—have also played a pivotal role.