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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)
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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.

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Business

Iran War Sends Shockwaves Through African Fuel Market and Economies

A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
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Iran War Sends Shockwaves Through African Fuel Market and Economies

A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)
A motorist fills a container with fuel at a petrol station, as the price of oil and gas has surged amid the conflict in the Middle East, in London, Britain, March 5, 2026 (Reuters)

Surging oil prices triggered by the war with Iran are rippling across African economies, threatening higher fuel costs, rising inflation and renewed pressure on currencies across the continent.

Africa imports most of the petroleum products it consumes, leaving many economies highly vulnerable to supply disruptions tied to tensions in the Middle East, a region central to global oil flows.

"Africa is a net importer of oil products, meaning it is heavily exposed to shocks like these," said Nick Hedley, an energy transition research analyst at Zero Carbon Analytics.

When global oil supplies tighten, Nedley said, prices rise while African currencies often weaken as investors move funds into safe-haven assets such as the US dollar.

That combination amplifies the impact of price spikes in import-dependent markets such as Kenya and Ghana.

A similar dynamic unfolded after Russia's full-scale invasion of Ukraine in 2022, when rising crude prices and a weakening currency pushed transport fuel prices in South Africa up by more than 25% within six months, Hedley said.

"The near-term risks come from mainly the rising oil prices and weakening exchange rates as investors move to safe-haven assets," said Oxford Economics senior economist Brendon Verster.

Oil markets remain particularly sensitive to the conflict because of the strategic importance of the Strait of Hormuz, a narrow shipping corridor through which about a fifth of the world’s crude passes.

The impact of higher oil prices across Africa will be uneven.

Countries like Kenya and Uganda say their supply remain stable even as they work on ensuring continuity. Nigeria and Ghana produce crude oil but import most of their refined petroleum products, limiting the benefits to them of higher global prices.

"It’s difficult to say at this point whether they will see net gains," Hedley said. "Oil producers could benefit from higher crude prices, but ordinary citizens will likely face higher transport and fuel costs, and potentially higher interest rates."

Still, sustained high prices could bring a windfall for Africa’s major oil exporters. Verster noted that Nigeria exports roughly 1.5 million barrels of oil per day and has based its medium-term fiscal framework on oil prices between $64 and $66 per barrel through 2028.

The war pushed prices above $100 per barrel Monday, a level that if sustained, would significantly boost revenues for exporters including Angola, Algeria and Libya.

For most African households, however, the immediate effect is likely to be higher living costs.

"This is a serious concern," Hedley said, noting that most food and goods across Africa are transported by road. "Rising fuel costs therefore feed quickly into broader inflation and reduce household purchasing power."

Peter Attard Montalto, managing director at South African advisory firm Kruthan said the crisis is also testing African economies.

"So far the impact has really been muted, for countries like South Africa," he said, noting that recent economic reforms have helped stabilize the country’s currency and bond markets.

"Still, higher oil and gas prices are expected to filter into inflation in the coming months," Montalto said.

Countries already operating under programs from the International Monetary Fund could face additional strain as energy import bills drain scarce foreign exchange reserves. Among the most vulnerable, analysts warn are Sudan, The Gambia, Central African Republic, Lesotho and Zimbabwe.

Over the longer term, analysts say the crisis may reinforce calls for African nations to diversify their energy systems and reduce dependence on imported fuels.

"It makes strategic sense for African countries to ensure long-term energy security and sovereignty," said Kennedy Mbeva, a research associate at the Center for the Study of Existential Risk at the University of Cambridge.

Achieving that, Mbeva said, will require balancing short-term fiscal pressures with long-term investments in clean energy and green industrialization.

Business

Bahrain's Bapco Declares Force Majeure after Iran Strikes

Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
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Bahrain's Bapco Declares Force Majeure after Iran Strikes

Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer
Smoke rises after an Iranian drone was intercepted over the Bahrain Financial Harbour towers, which houses the Israeli embassy, amid the US-Israeli conflict with Iran, in Manama, Bahrain, March 6, 2026. Picture taken on a mobile phone. REUTERS/Stringer

Bahrain's state-owned energy company Bapco declared force majeure after waves of Iranian strikes targeted the country's energy installations, the company said in a statement on Monday.

Bapco "hereby serves notice of force majeure on its group operations which have been affected by the ongoing regional conflict in the Middle East and the recent attack on its refinery complex", said a statement posted by the company.

An eyewitness reported on Monday seeing thick smoke rising from the Bapco oil refinery in Bahrain. The witness added that the smoke engulfed the refinery after the government had earlier announced injuries and damage in the Sitra area following an attack by an Iranian drone.

Bapco is Bahrain’s main oil refinery and a critical facility in the country’s energy sector.

Business

Gold Prices Fall on Dollar Strength, Fading US Rate-cut Hopes

Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
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Gold Prices Fall on Dollar Strength, Fading US Rate-cut Hopes

Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)
Gold bracelets and necklaces are displayed for sale at a gold shop in the Grand Bazaar in Istanbul (AFP)

Gold prices fell on Monday, as a stronger US dollar weighed on the greenback-priced bullion, while higher energy costs fueled inflation concerns and further dimmed the prospects for near-term reductions in interest rates.
Spot gold shed 1.4% to $5,097.70 per ounce as of 0750 GMT, after falling more than 2% earlier in the session. US gold futures for April delivery lost ‌1% to $5,106.
The ‌dollar rose to a more than three-month ‌high, ⁠making bullion more expensive ⁠for holders of other currencies.
The US 10-year Treasury yields climbed to a one-month high, raising the cost of holding non-yielding gold.
"Gold is on the back foot today despite the market tumult, with triple-digit oil prices boosting the dollar on inflation fears and scaled back rate-cutting expectations," said Tim Waterer, KCM Trade chief market ⁠analyst.
Crude oil prices surged more than 15% to ‌above $110 per barrel, as the widening ‌US-Israeli war with Iran prompted some major Middle Eastern oil producers to ‌cut supplies amid fears of prolonged disruption to shipments through ‌the Strait of Hormuz.
"Much of gold's price rise over the last 12 months was predicated on a dovish outlook for US interest rates, but given the inflation risk presented by $100 per barrel oil, rate cuts are ‌no longer a given and gold has repriced accordingly," Waterer said.
Investors expect the US Federal Reserve ⁠to hold ⁠rates steady at the end of its two-day meeting on March 18, per CME Group's FedWatch tool. The odds of a June hold, which were below 43% last week - when the war began, climbed to more than 51%.
Non-yielding bullion tends to thrive in a low-interest-rate environment.
Meanwhile, Iran on Monday named Mojtaba Khamenei to succeed his father, Ali Khamenei, as supreme leader, signaling that hardliners remain firmly in charge and further escalating tensions in the region.
Spot silver fell 1.3% to $84.42 per ounce, after losing over 5% earlier in the session. Spot platinum lost 1.3% to $2,108.05 and palladium fell 2.4% to $1,586.75.