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Saudi Energy Minister, Iraqi Counterpart Discuss Connecting Electricity Grids

The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
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Saudi Energy Minister, Iraqi Counterpart Discuss Connecting Electricity Grids

The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)
The Saudi and Iraqi ministers and their countries' respective delegations meet in Riyadh. (Asharq Al-Awsat)

Saudi Minister of Energy Prince Abdulaziz bin Salman and Iraqi Minister of Oil Ihsan Ismail discussed on Thursday connecting their electricity grids.

The ministers explored issues of common interest in various energy fields.

The meeting discussed ways to strengthen cooperation in the energy fields in order achieve shared leadership through the Saudi-Iraqi Coordination Council.

They also discussed the oil market and joint cooperation between their countries to support and maintain market stability and their active role within OPEC+.

Saudi Arabia and Iraq had signed a memorandum of understanding in January to connect their electricity grids.

The agreement aims to share the electricity-generating reserves and exchange electricity between the neighbors for emergency use in case of a power cut.

“We aim to achieve optimal investment in the electrical connection with Iraq,” said Prince Abdulaziz, adding that this project comes within the framework of the Kingdom's Vision 2030 and its executive programs.

“The project came after a study that showed that the linkage provided promising opportunities between the two countries,” he added.

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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)
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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.