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Saudi Arabia Finances $319 Million Infrastructure Project in Oman

The Saudi-Omani Investment Forum kicked off in Riyadh on Wednesday. (Asharq Al-Awsat)
The Saudi-Omani Investment Forum kicked off in Riyadh on Wednesday. (Asharq Al-Awsat)
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Saudi Arabia Finances $319 Million Infrastructure Project in Oman

The Saudi-Omani Investment Forum kicked off in Riyadh on Wednesday. (Asharq Al-Awsat)
The Saudi-Omani Investment Forum kicked off in Riyadh on Wednesday. (Asharq Al-Awsat)

Saudi Arabia and Oman announced on Wednesday that they signed 13 investment MoUs between the their private and public sectors with a value exceeding one billion riyals ($266.6 million).

Fields covered by the agreements include oil and petrochemical storage, renewable energy and green hydrogen, mining investment, logistics and transportation, entrepreneurship, automation of research, development and innovation, fisheries, support for marine industries, tourism and travel, in addition to solar energy projects.

The signing of the MoUs came on the sidelines of the Saudi-Omani Investment Forum held in Riyadh on Feb.1-4.

In this context, the Saudi Fund for Development signed a memorandum of understanding for an infrastructure development project worth $319 million (SAR 1.2 billion) in Oman. The project aims to fund the infrastructure of the special economic zone in the governorate of ad-Dhahirah.

The MoU, which was signed in the presence of Saudi Minister of Investment Khalid al-Falih and Omani Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed al-Youssef, aims to enhance cooperation by establishing the special economic zone that would increase commercial trade, encourage partnerships between the various sectors and reduce the cost of production and export between the two countries.

CEO of the Saudi Fund for Development Sultan al-Murshed said that the MoU “comes to strengthen the long-established historical relations and close partnership between Saudi Arabia and Oman, as these development projects and programs contribute to achieving the ambitious visions of the two countries.”

Addressing the opening session of the forum, Eng. Khalid Al-Falih, the Saudi Minister of Investment, underlined Riyadh’s keenness to strengthen and develop investment and economic relations with Oman.

Al-Falih emphasized the importance and vitality of the private sector and its active role in advancing development in the two countries and activating the Saudi and Omani partnership, as well as its great contribution to the success of the forum.

Omani Minister of Commerce, Industry and Investment Promotion Qais Al-Youssef said that the forum reflected the strength of the Saudi-Omani relations, pointing to the two countries’ keenness to activate partnership in priority sectors to advance economic sustainability, keep pace with economic changes, and create links between the industries.

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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.