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Saudi Arabia, China Affirm Importance of Stable Global Oil Markets

The Custodian of the Two Holy Mosques and the Chinese president. SPA
The Custodian of the Two Holy Mosques and the Chinese president. SPA
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Saudi Arabia, China Affirm Importance of Stable Global Oil Markets

The Custodian of the Two Holy Mosques and the Chinese president. SPA
The Custodian of the Two Holy Mosques and the Chinese president. SPA

Saudi Arabia and China reaffirmed the significance of stability in global oil markets and the Saudi role in that, a joint statement said on Friday, following Chinese President Xi Jinping's visit to the Kingdom.

"The People's Republic of China welcomed the Kingdom’s role as a supporter of the balance and stability in the world oil markets, and as reliable major exporter of crude oil to China," the statement said.

The statement was issued after the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and Prince Mohammed bin Salman, Crown Prince and Prime Minister, met with Xi on Thursday.

The leaders “indicated that the development and consolidation of cooperation in the field of oil is in conformity with the common interests of both sides,” said the statement.

“The two sides agreed to explore the common investment opportunities in the petrochemicals sector, develop promising projects in petrochemical conversion techniques, and enhance joint cooperation in a number of fields and projects including electricity, PV energy, wind energy, and other sources of renewable energy.”

Saudi Arabia and China “also agreed to develop related projects, innovative uses of hydrocarbon resources, energy efficiency, localization of energy sector components and its supply chains, in addition to cooperating in the peaceful use of nuclear energy and the development of modern technologies such as artificial intelligence, as well as innovation in the energy sector.”

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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.