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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia's Non-Oil Exports Hit Historic High of SAR515 Billion in 2024

A night view of Riyadh, Saudi Arabia. (SPA)
A night view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia's non-oil exports reached an unprecedented SAR515 billion in 2024, marking the highest value in the Kingdom's history. This achievement represents a significant 13% increase compared to the previous year and an impressive growth of over 113% since the launch of Vision 2030.

The robust growth spanned all export sectors. Merchandise exports climbed to SAR217 billion (+4%), fueled by respective increases of 2% and 9% in petrochemical and non-petrochemical exports, reported the Saudi Press Agency on Saturday.

Re-exports surged to SAR90 billion, demonstrating a remarkable 205% growth since the inception of Vision 2030. Services exports also reached an all-time high of SAR207 billion, exhibiting a 14% year-on-year increase and a substantial 220% rise since Vision 2030's announcement.

Saudi Export Development Authority CEO Abdulrahman Althukair attributed this historic non-oil export performance to the Kingdom's sustained efforts in economic diversification and enhancing the competitiveness of national products.

He highlighted the authority's commitment to facilitating national companies' access to new markets and bolstering their export capabilities through comprehensive programs encompassing training, empowerment, promotion, and advisory services. This aligns with Vision 2030's goals to establish a thriving economy where non-oil exports are a key driver of sustainable growth.

In 2024, petrochemical commodity exports amounted to SAR149 billion, constituting 68% of total commodity exports, and registered a 2% increase in value and weight compared to the previous year.

Non-petrochemical commodity exports achieved a remarkable SAR69 billion (32% of total commodity exports), the highest value in recent years. This included record export figures for over 205 Saudi products, such as food and dairy products, minerals, and building materials. Fertilizer exports also demonstrated exceptional growth, with product weight reaching a historic peak in 2024, increasing by 5% year-on-year, and more than fivefold in value since the launch of Vision 2030.

The Kingdom's re-export sector also delivered a historic performance in 2024, reaching SAR90 billion, a 205% increase compared to 2016, a 42% rise year-on-year, and a 114% increase compared to 2019. This was primarily driven by the re-export of mobile phones, which reached a record value of SAR25 billion, more than doubling their 2023 value. The operation of the integrated logistics zone at King Khalid International Airport played a significant role in this remarkable growth by enhancing supply chain efficiency and facilitating re-export operations.

Machinery, automated devices, transportation equipment, and parts thereof constituted 84% of total re-exports in 2024. Re-exports of aircraft parts also experienced substantial growth, increasing from SAR1.6 billion in 2022 to over SAR2 billion in 2024.

In 2024, the Kingdom exported goods, re-exports, and services to over 180 countries, with 37 countries registering record import values, including the UAE, Bahrain, Iraq, Oman, Algeria, Spain, France, Poland, Libya, and Syria. Other countries, such as Indonesia, Thailand, Morocco, Pakistan, Nigeria, Germany, Greece, and Bulgaria, also achieved record import volumes.

Services exports reached a record SAR207 billion in 2024, marking a 14% year-on-year increase and a 220% rise since 2016. The travel and tourism sector was a key driver, increasing by 270% since 2016. In 2024, Saudi Arabia welcomed approximately 30 million international tourists, contributing to a 150% increase in travel exports compared to 2019, representing 74% of total service exports.

The Kingdom also recorded a 69% increase in international tourist numbers compared to pre-pandemic levels and a 148% increase in tourism revenues compared to 2019. Saudi Arabia led the G20 in tourist number growth, with a 73% growth rate during the first seven months of 2024 compared to the same period in 2019. The transportation sector contributed 12% of total service exports, achieving a 5% year-on-year growth.

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Russia Cuts Expected 2026 Oil Output to 17-Year Low on War Fallout

A general view shows an oil treatment plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia March 10, 2019. (Reuters)
A general view shows an oil treatment plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia March 10, 2019. (Reuters)
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Russia Cuts Expected 2026 Oil Output to 17-Year Low on War Fallout

A general view shows an oil treatment plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia March 10, 2019. (Reuters)
A general view shows an oil treatment plant in the Yarakta Oil Field, owned by Irkutsk Oil Company (INK), in Irkutsk Region, Russia March 10, 2019. (Reuters)

Russia downgraded oil output forecast for this year to a 17-year low and revised fuel exports outlook for 2026 and 2027 due to the war with Ukraine, according to a government draft forecast seen by Reuters.

The forecasts, which are expected to be finalized at the end of September and ‌are used in drafting the budget, reduced oil production estimates for 2026-2029 by between 16 million and 20 million tons compared to the previous outlook published in May.

Since the war began in February 2022, the European Union has banned most of Russian oil and fuel imports, an important source of revenue for Moscow.

Along with export bottlenecks, intensifying Ukrainian drone attacks on Russia's oil refineries in the past months have also reduced ⁠fuel production, triggering gasoline shortages across the country.

In its base case scenario, the government expects that Russia's crude oil production — the world's third-largest — will decline by 17.2 million metric tons this year to 494.2 million tons or 9.88 million barrels per day, its lowest since 2009.

Crude production is expected to recover to 500 million tons next year, but it will still be 16 million tons below the previous forecast. Output in 2028 and 2029 is seen rising further, but still remaining below 2025 levels.

Russia's Deputy Prime Minister Alexander Novak, an oil point man of President Vladimir Putin, acknowledged in June that the country's oil production had fallen since the ‌start of ⁠the year, blaming the decline on unplanned maintenance at refineries.

A reduction in fuel output caused by the drone attacks led to an increase of crude oil exports, mainly to China and India.

According to the draft forecast, Russia's crude oil exports could reach 244.7 million tons this year, up from 230.8 million tons in 2025 and 7.5 million tons above the previous outlook.

Crude oil ⁠exports are expected to decline to 232.5 million tons in 2027 and then fall sharply to 216.6 million tons in 2028-2029.

To address domestic market shortages, Russia introduced a ban on diesel exports, in addition to restrictions on overseas sales of gasoline and jet fuel.

As ⁠a result, the Russian government sees fuel exports falling by 27.3 million tons this year to 98.5 million tons, 24.1 million tons below its previous forecast.

While fuel exports are seen rising to 113.1 million tons next year, they ⁠will be almost 13 million tons below the 2025 level and 21 million tons below the previous forecast.

Business

Oil Prices Extend Gains as US and Iran Trade Fresh Strikes

An oil tanker is anchored in Lake Maracaibo in Cabimas, Venezuela, Monday, Aug. 31, 2026. (AP)
An oil tanker is anchored in Lake Maracaibo in Cabimas, Venezuela, Monday, Aug. 31, 2026. (AP)
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Oil Prices Extend Gains as US and Iran Trade Fresh Strikes

An oil tanker is anchored in Lake Maracaibo in Cabimas, Venezuela, Monday, Aug. 31, 2026. (AP)
An oil tanker is anchored in Lake Maracaibo in Cabimas, Venezuela, Monday, Aug. 31, 2026. (AP)

Oil prices rose in early trade on Wednesday, extending the previous session's surge, as concerns over supply disruption intensified after the US and Iran exchanged strikes overnight, dimming hopes for a quick easing of tensions in the Middle East.

Brent crude futures rose 75 cents, or 0.8%, to $95.40 a barrel by 0345 GMT, while US West Texas Intermediate crude futures climbed 44 cents, or 0.5%, to $90.66.

Both contracts soared more than $4 on Tuesday, marking Brent's largest gain since July 24 and WTI's largest since July 23.

The US said it had launched ‌a series ‌of airstrikes against targets in Iran overnight, prompting a response ‌from ⁠Tehran, in the most ⁠serious escalation of the conflict between the two countries in weeks.

The Revolutionary Guard Corps said the US attacks would further restrict traffic through the Strait of Hormuz, a critical waterway that carried about one-fifth of the global oil consumed before the conflict and which Iran has effectively closed to commercial shipping.

"Developments in recent days brought risks to regional oil supplies back into focus...We’ve seen oil flow through the Strait of Hormuz despite the ⁠stalemate between the US and Iran, but rising tensions clearly ‌put crossings at risk," said ING analysts in ‌a client note.

The IRGC also said it had targeted Jordan and Bahrain in response to the American strikes.

Jordan's military said its air defenses intercepted 10 ballistic missiles that entered its airspace, while two US officials said no American casualties had been ‌reported so far from the attacks. Separately, Kuwait said its armed forces were responding to hostile drone activity.

The latest exchange followed ⁠a weekend flare-up ⁠in hostilities, the first since July, and came after attacks on two tankers departing the Strait of Hormuz on Monday, causing further disruptions to oil supplies and forcing traders to seek alternative crude shipments.

"The oil market is no longer pricing just the risk of war; it is increasingly pricing the cost of an unresolved war," said Priyanka Sachdeva, Phillip Nova's head of market insights.

"Until there is clear evidence that negotiations can produce a lasting resolution and that normal oil flows through the Strait are returning, the risk premium in crude is likely to remain elevated."

Meanwhile, in the US, the world's largest oil producer, crude inventories fell by 2.6 million barrels in the week ended August 28, while distillate stocks, which include diesel and heating oil, declined by 265,000 barrels, market sources said, citing data from the American Petroleum Institute.

Business

Saudia Cargo Says AI Boosts Efficiency, Prepares to Double Fleet

A Saudia Cargo aircraft (Asharq Al-Awsat)
A Saudia Cargo aircraft (Asharq Al-Awsat)
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Saudia Cargo Says AI Boosts Efficiency, Prepares to Double Fleet

A Saudia Cargo aircraft (Asharq Al-Awsat)
A Saudia Cargo aircraft (Asharq Al-Awsat)

Saudi Arabia’s air cargo industry is undergoing a technology-led structural shift to make global supply chains more efficient.

At the center of that shift, Saudia Cargo is entering a new phase of operational and technological expansion built on artificial intelligence and a doubling of its fleet, supporting the kingdom’s ambition to become a global logistics hub linking three continents by 2030.

Artificial intelligence and digital technologies are now embedded in the company’s operations, rather than used merely as supporting tools, Saudia Cargo Vice President of Shared Services Hisham Mallakah told Asharq Al-Awsat in an exclusive interview on the sidelines of the LEAP 2026 technology conference.

The company uses algorithms to forecast demand, manage capacity and optimize cargo weight and load distribution, Mallakah said. It also deploys sensors to monitor the temperature of sensitive shipments and tools to automate operations.

Saudia Cargo’s drive to automate operations and forecast demand mirrors the global air freight industry’s shift toward smart logistics.

According to reports by the International Air Transport Association (IATA), using artificial intelligence and algorithms to manage cargo loads and cold chains cuts operating costs by more than 15% and improves delivery-time accuracy amid volatility in global e-commerce markets.

Saudia Cargo is Saudi Arabia’s national carrier for air freight, cargo transportation and logistics solutions. It is part of the Saudia Group.

Technology partnerships

Mallakah said Saudia Cargo was participating in LEAP to keep pace with technological advances and explore opportunities for cooperation, particularly in artificial intelligence and cloud computing.

The conference allows the company to examine new technologies, exchange expertise with industry leaders and explore future partnerships to develop solutions that are more flexible and responsive to market shifts.

Doubling the cargo fleet

Saudia Cargo is preparing to add four Boeing 777-200F aircraft to its fleet, doubling its size over more than two years.

The Boeing 777-200F is a preferred choice among global air cargo operators for long-haul flights, with a range of about 9,200 kilometers at full payload.

The fleet expansion comes as global demand for transporting high-value and temperature-sensitive goods, such as semiconductors and pharmaceuticals, is growing by more than 7% annually.

Mallakah said the new aircraft would strengthen the company’s ability to transport heavy and temperature-sensitive cargo nonstop over long distances. Their fuel efficiency would also improve performance while reducing costs and emissions.

The aircraft would support expansion into high-yield markets and help the company capitalize on rising demand for express freight and e-commerce, particularly between China, the rest of Asia, Europe and North America, as well as in the pharmaceutical and perishable-goods sectors.

The Riyadh-Melbourne route links continents

Saudia Cargo has also launched a new route between Riyadh and Melbourne, tapping Australia’s importance as a source of fresh produce, meat, dairy products and pharmaceuticals.

The direct service will expedite the transport of those goods to markets in the Middle East and Europe while supporting Saudi exports to Oceania.

The Riyadh-Melbourne route carries particular strategic importance. Australia is one of the largest exporters of meat and fresh food products to Oceania and the Middle East, while the pharmaceutical industry depends on fast and reliable supply chains.

The direct connection will shorten transit times and reduce losses involving perishable cargo compared with indirect routes.

Mallakah identified further growth opportunities in East and Southeast Asia, particularly China, Vietnam and Indonesia, driven by e-commerce.

The company is also targeting the African market to strengthen Saudi Arabia’s role as a logistics corridor between Asia and Africa. Its expansion plans extend to Central and Eastern Europe.

Supporting Saudi Arabia’s logistics transformation

The company’s expansion aligns with the National Transport and Logistics Strategy, which aims to raise Saudi Arabia’s annual air cargo capacity to 4.5 million tonnes by 2030.

The kingdom is seeking to cement its position as a global logistics hub connecting continents, capitalizing on its geographic location and its expanding role in trade and supply chains.

It is also working to strengthen technology, aviation and logistics as pillars of economic diversification and sustainable growth.