Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.



Saudi Local Content Drive Gains Momentum, with Spending, Investment Opportunities Exceeding $352 billion

A view of the annual Local Content Award ceremony organized by the authority (SPA) 
A view of the annual Local Content Award ceremony organized by the authority (SPA) 
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Saudi Local Content Drive Gains Momentum, with Spending, Investment Opportunities Exceeding $352 billion

A view of the annual Local Content Award ceremony organized by the authority (SPA) 
A view of the annual Local Content Award ceremony organized by the authority (SPA) 

Saudi Arabia’s push to boost local content gathered pace between 2019 and 2023, with cumulative corporate procurement spending reaching about SAR 683 billion ($182.1 billion), while investment opportunities developed under the Local Content Coordination Council exceeded SAR 640 billion ($170.6 billion).

The figures highlight accelerating efforts to empower the private sector and strengthen domestic supply chains, supporting economic diversification and reinforcing the national economy.

The Local Content and Government Procurement Authority announced an updated five-year strategy for the Local Content Coordination Council, aimed at consolidating its role as a national umbrella bringing together leading government entities and major companies to advance local content development.

The revised strategy seeks to enhance integration between the public and private sectors and develop effective policies to raise awareness and support economic growth. It also expands the scope of member sectors to include oil and gas, electricity, petrochemicals, mining, real estate, telecommunications, technology, transport and utilities, reflecting a comprehensive approach aligned with sustainable development goals.

Economic transformation

The update comes as part of broader economic reforms, introducing a refined vision and methodology aligned with future ambitions, alongside new targets and performance indicators to measure impact. It also includes a restructuring of the council through specialized committees focused on four key areas: improving policy efficiency, developing supply chains, building capabilities, and raising awareness.

The council is chaired by the authority and includes members such as the Ministry of Energy, Ministry of Industry and Mineral Resources, the Federation of Saudi Chambers, and major companies including Saudi Aramco, SABIC, Saudi Electricity Company, Maaden, stc Group and Saudia Group.

New members joining the council include Matarat Holding, National Water Company, NEOM, Roshn Group and Saudi Railway Company (SAR).

Additional companies have joined at the level of specialized committees, including Sela, NUPCO, Alat Technologies, Ceer, Almarai, Alfanar, Bahri, Nesma & Partners and SAPTCO.

Strategic initiatives

Abdulrahman Al-Samari, chief executive of the authority, said that since the council’s establishment in 2019 it has helped unify efforts to develop local content, raise awareness and maturity among private sector companies, and expand national supply chains while enhancing their competitiveness.

He added that cumulative spending linked to local content in member companies’ procurement reached about SAR 683 billion between 2019 and 2023.

Over the same period, the council implemented 10 strategic initiatives and developed around 461 high-quality investment opportunities worth more than SAR 640 billion, reflecting the scale of opportunities available through collaboration and mobilization of national capabilities.

 

 


South Korea's Lee Says Country Must Balance Risk as Hormuz Disruptions Threaten Oil Supplies

A man fills up his car at a gas station in Seoul, South Korea, March 9, 2026. REUTERS/Kim Hong-Ji
A man fills up his car at a gas station in Seoul, South Korea, March 9, 2026. REUTERS/Kim Hong-Ji
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South Korea's Lee Says Country Must Balance Risk as Hormuz Disruptions Threaten Oil Supplies

A man fills up his car at a gas station in Seoul, South Korea, March 9, 2026. REUTERS/Kim Hong-Ji
A man fills up his car at a gas station in Seoul, South Korea, March 9, 2026. REUTERS/Kim Hong-Ji

South Korea must accept a degree of risk in importing crude oil from the Middle East amid blockages of the Strait of Hormuz, President Lee Jae Myung said on Monday.

"There are not many alternative routes, and if shipments are cut off altogether because of heightened risk, it could have a serious impact on South Korea's crude supply and pose a major risk to the public, so ‌we need ‌to strike a balance and accept a certain degree of ‌risk," ⁠Lee said in ⁠a cabinet meeting.

South Korean authorities have been consulting with other oil-producing countries to secure alternative routes, including Saudi Arabia, Oman and Algeria, ruling Democratic Party lawmaker Ahn Do-geol said on Monday.

Ahn told reporters that diplomatic efforts led by the foreign ministry included the potential dispatch of special envoys to support the process, said Reuters.

The Industry Ministry is pushing a plan to deploy five South Korean-flagged vessels on ⁠the Red Sea route and officials had discussed supplying government-held ‌oil reserves to private refiners first, with swaps ‌to be made once replacement cargoes secured overseas arrive in the country, he ‌said.

Finance Minister Koo Yun-cheol on Friday met envoys from Gulf Cooperation Council ‌member states to ensure a steady supply of oil, liquefied natural gas, naphtha, urea and other critical resources, the ministry said in a statement on Sunday.

Like many other Asian economies, South Korea relies heavily on energy imports, including through the Strait of ‌Hormuz, which was a conduit for 20% of the world's oil before the US and Israel launched air strikes ⁠on Iran on ⁠February 28. Iran has since effectively shut down the waterway, driving up energy prices and stoking fears of a global recession.

The Energy Ministry said the government planned to meet a goal of supplying 100 gigawatts of renewable energy by 2030 as soon as possible and expand the share of power generation from renewables to more than 20%.

Inter-Korean border areas would be included as a solar power deployment zone, while residents living near high-voltage transmission line construction sites would be allowed to directly invest in projects and earn income from them, it said.

South Korea has also set a target for hydrogen reduction steelmaking, which uses hydrogen instead of coal or gas, with a 300,000-ton pilot facility to be completed by 2028, with full commercialization targeted for after 2037.


Pessimism Grows over Iraq’s Prospects for Resuming Oil Exports

An Iraqi petroleum products tanker (Iraqi News Agency) 
An Iraqi petroleum products tanker (Iraqi News Agency) 
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Pessimism Grows over Iraq’s Prospects for Resuming Oil Exports

An Iraqi petroleum products tanker (Iraqi News Agency) 
An Iraqi petroleum products tanker (Iraqi News Agency) 

A growing number of Iraqi oil and economic experts are voicing pessimism about the country’s ability to resume crude exports via the Gulf and the Strait of Hormuz, despite Iran’s announcement of an “exception” allowing Iraqi shipments to pass as those of a “friendly country”.

Iraq has suffered a sharp blow to its oil sector following the US-Israeli conflict with Iran and the closure of the Strait of Hormuz, losing roughly three-quarters of its exports. The country had been producing about 3.5 million barrels per day, but current export volumes have dropped to around one million barrels per day, most of which is diverted to domestic consumption.

More than 300,000 barrels per day are still exported via the Kurdistan Region through Türkiye’s Ceyhan port, while smaller quantities are transported overland by tanker trucks to Jordan and Syria.

As a result of the collapse in exports, Iraq is expected to face a monthly fiscal deficit of between $5 billion and $6 billion, placing the government under severe financial strain, economists say.

While Iran’s decision has been welcomed by its allies and sympathizers as a positive step for Iraq, sceptics argue that resuming exports is far more complex than a political declaration. They point to complex web of technical, security and logistical challenges involving maritime risk, insurance costs, shipping company behavior and contractual arrangements.

Security concerns remain acute. Despite the Iranian exemption, four oil facilities in the southern province of Basra were targeted by drone attacks over the past two days, reportedly carried out by Iran-backed armed factions seeking to pressure foreign companies to leave Iraq. The incidents raise questions about the consistency between Tehran’s declared position and the actions of allied groups on the ground.

Former oil ministry spokesman Assem Jihad said Iraq’s export capacity is governed by “fundamental realities” that make a swift return to normal operations unlikely.

In comments posted on Facebook, he noted that Iraq does not rely on its own fleet of supertankers to export crude. Instead, the State Organization for Marketing of Oil (SOMO) sells oil under contracts whereby buyers arrange shipping and lift cargoes from Iraqi ports.

The key issue, he explained, is not a lack of contracts but the reluctance of global shipping companies and tanker owners to enter what is now considered a high-risk zone. Even if buyers are willing, securing vessels prepared to dock at southern Iraqi ports or operate near conflict areas remains a major obstacle.

Insurance costs have also surged. Companies face steep premiums for vessels transiting conflict zones, discouraging participation. “Even with statements allowing passage, that does not necessarily translate into a safe and secure shipping environment,” Jihad said, adding that insurers and shipping firms base decisions on actual risk assessments rather than political assurances.

He argued that exports would only resume once confidence returns to maritime markets, risks decline and insurance costs fall.

Economic researcher Ziad al-Hashimi outlined additional barriers preventing Iraq from benefiting from the Iranian decision.

Writing on X, he said Iraq’s oil production, service companies and southern export terminals are currently operating under “force majeure”, a status declared on March 20 across fields run by foreign firms. Lifting this clause could take time, as companies would require assurances that operations will not be targeted again.

“Its removal is not a quick process,” he noted, warning of “real risk” if exports resume without improved security guarantees.

Al-Hashimi also pointed to ongoing attacks on oil fields, saying that many service companies have evacuated staff and suspended operations. “Work will not return to normal as long as the war continues,” he underlined.

He further questioned the practicality of Iran’s exemption, which applies to loaded Iraqi tankers exiting Hormuz. “How will empty vessels enter the strait to reach Iraq, and who will guarantee their safety?” he asked.

The government and oil ministry have meanwhile faced criticism for failing to take precautionary measures to safeguard production, Iraq’s main source of national income. Critics say Baghdad should have diversified export routes or maintained floating storage capacity, as many oil-producing countries do.

According to Basra-based economist Nabil al-Marsoumi, Iraq’s state tanker company, established in 1972, currently owns just six vessels for refined products with a combined capacity of 117,000 tons. Four of these ships are over 15 years old, requiring more frequent maintenance.

The company no longer owns any crude oil tankers, he added, compared with 25 vessels totaling 1.485 million tons in 1983.

On the diplomatic front, Foreign Minister Fuad Hussein on Sunday thanked Iran for allowing Iraqi oil tankers to transit Hormuz during a meeting with Iranian ambassador Mohammad Kazem Al Sadeq.

A foreign ministry statement said the two sides discussed mechanisms to ensure implementation of the arrangement and broader regional developments. Hussein reiterated Iraq’s opposition to war and stressed the need for dialogue and peaceful conflict resolution.

Separately, data from the London Stock Exchange Group and analytics firm Kpler indicated that a tanker carrying Iraqi crude had passed through the Strait of Hormuz near Iran’s coast. The vessel, Ocean Thunder, loaded about one million barrels of Basra Heavy crude on March 2 and is expected to discharge in Malaysia in mid-April.