Saudi Arabia Receives Largest Share of China's BRI Investments

Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
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Saudi Arabia Receives Largest Share of China's BRI Investments

Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)

Saudi Arabia is the largest recipient of Chinese investments within the Belt and Road Initiative (BRI) during the first half of 2022, according to a recent report.

China's Belt and Road Initiative aims to improve interconnection and cooperation across continents and move to jointly establish the Silk Road Economic Belt and the 21st century Maritime Silk Road.

The Chinese government has focused on the international community, especially the countries along the initiative's paths, to further its initiative.

A report by the Shanghai-based Green Finance and Development Center indicated that gas commitments were higher than in the past two years and accounted for 56 percent of China's energy contributions in 2021.

Saudi Arabia was the primary recipient of gas investments by about $4.6 billion, followed by Iraq.

Saudi Arabia was the primary recipient of Chinese investments, while various countries saw no Chinese engagement in H1 2022, including Russia, Sri Lanka, and Egypt.

According to the report, BRI finance and investments are steady at low levels in the first half of 2022 at $28.4 billion, compared to $29.6 billion in the first half of 2021.

Meanwhile, the Kingdom's merchandise exports reached $38.4 billion in May, compared to $21 billion during the same month last year, an 83.4 percent increase of $17.3 billion.

The General Authority for Statistics (GASTAT) revealed that oil exports increased in May to $30.9 billion, compared to $15.2 billion during the same month in 2021, a 105.5 percent rise.

The report showed the trade balance of exports and imports rose about threefold in May to $24 billion, compared to the same month last year, which reached $9 billion.

It indicated that last May's non-oil exports (including re-exports) amounted to $7.4 billion, compared to $5.8 billion in the same month the previous year, a $1.6 billion increase.

Data showed that the value of the Kingdom's merchandise imports during May amounted to $14.4 billion, compared to $11.7 billion in the same month of 2021, a 21.8 percent hike.

The report revealed that the Kingdom's exports to China last May reached $5.1 billion, 13.3 percent of the total exports, making it the leading destination for Saudi Arabia, followed by India and Japan, amounting to $3.9 billion.

GASTAT is the only official statistical reference for statistical data and information in Saudi Arabia.

It executes all the statistical work and technical oversight of the statistical sector, designs and implements field surveys, conducts statistical studies and research, and analyzes data and information.

The authority also documents and archives the information and statistical data covering all aspects of Saudi Arabia's life from multiple sources.



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.