Singapore Trade Minister: Saudi Investment Initiatives have Captivated Our Companies

Singapore's Minister of Trade and Industry Lim Hng Kiang attends an interview with Reuters at a hotel in Mexico City, Mexico, June 9, 2016. REUTERS/Henry Romero
Singapore's Minister of Trade and Industry Lim Hng Kiang attends an interview with Reuters at a hotel in Mexico City, Mexico, June 9, 2016. REUTERS/Henry Romero
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Singapore Trade Minister: Saudi Investment Initiatives have Captivated Our Companies

Singapore's Minister of Trade and Industry Lim Hng Kiang attends an interview with Reuters at a hotel in Mexico City, Mexico, June 9, 2016. REUTERS/Henry Romero
Singapore's Minister of Trade and Industry Lim Hng Kiang attends an interview with Reuters at a hotel in Mexico City, Mexico, June 9, 2016. REUTERS/Henry Romero

Singapore Trade Minister Lim Hng Kiang‎ said the initiatives recently announced in Saudi Arabia during the “Future Investment Initiative" Conference have raised the interest of Singaporean companies looking to increase their business activities and investments within the Kingdom and achieve mutual benefit.

“Given the great transformation that Saudi Arabia is seeking, Vision 2030 and the Future Investment Initiative are clear signals that the Kingdom welcomes foreign investment and takes concrete steps to diversify the Saudi economy,” Lim Hng Kiang told Asharq al-Awsat newspaper on the sidelines of the conference.

“These interesting Saudi initiatives are based on the determination to move away from traditional oil dependence and focus on different sectors such as health care, education, facilities management, logistics and exports; areas where Singaporean firms with relevant expertise can contribute to achieve the Kingdom’s plans,” he added.

Asked about relations between Saudi Arabia and Singapore, the trade minister said: “Saudi Arabia and Singapore enjoy strong trade and investment ties, supported by the GCC-Singapore Free Trade Agreement, which entered into force in 2013.”

He went on to say: “Today, Riyadh is one of Singapore’s largest trading partners in the Middle East, where bilateral trade between the two countries exceeded 36 billion riyals (USD 9.6 billion) last year.”

Kiang pointed to the work of major Singaporean companies in the Saudi market, including Changi International Airport, which is working to enhance the efficiency of King Fahd International Airport in Dammam.

He noted that since the beginning of the “Changi” management of Dammam airport, passenger growth has increased significantly each year, stressing that Dammam Airport currently serves 36 airlines, with 65 cities inside and outside the region.

The minister noted that Singapore’s central geostrategic position in South-East Asia makes it a useful starting point for Saudi companies like Aramco and others looking for new opportunities in one of the fastest growing regions in the world. He also said he expected trade and investment to increase between the two sides.



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.