Saudi Arabia, US Set Record Levels of Non-Oil Trade Exchange

The Saudi-US trade relationship is witnessing a growth in non-oil goods exchange (Asharq Al-Awsat)
The Saudi-US trade relationship is witnessing a growth in non-oil goods exchange (Asharq Al-Awsat)
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Saudi Arabia, US Set Record Levels of Non-Oil Trade Exchange

The Saudi-US trade relationship is witnessing a growth in non-oil goods exchange (Asharq Al-Awsat)
The Saudi-US trade relationship is witnessing a growth in non-oil goods exchange (Asharq Al-Awsat)

Trade relations between the United States and Saudi Arabia recovered from the pandemic's low levels in 2020, recording high exchanges of oil and non-oil goods in 2021.

A report issued by the Washington-based Saudi-US Business Council indicated that total trade volume reached $24.7 billion, a 22 percent increase over 2020 when trade amounted to $20.2 billion.

US exports to Saudi Arabia totaled $11.1 billion, up 0.3 percent from last year. However, exports of key defense-related segments declined while export of electronics, industrial goods, motor vehicles, and pharmaceuticals expanded.

Saudi non-oil exports to the US totaled $2.4 billion, increasing 71 percent from the previous year's $1.4 billion, marking the highest annual non-oil exports from Saudi Arabia to the US on record.

Oil exports

Oil exports to the US rose 46 percent from $7.6 billion to $11.1 billion, according to the report exclusively obtained by Asharq Al-Awsat.

The report monitors the development of trade relations between the two countries and the expansion of non-oil exports.

The trade relationship between the two countries continues to evolve as Saudi non-oil exports grow beyond downstream petroleum industry products to metals and industrial manufacturers.

At the same time, the US remains the Kingdom's second-largest source of goods across a highly diversified export profile.

The report indicates that Saudi oil exports to the US declined in 2021, but they rose steadily with the increase in demand due to the pandemic and increased consumption of the transportation and industry sectors.

Saudi exports

Saudi non-oil exports to the US rose to $2.4 billion in 2021, marking the highest annual level of non-oil exports.

Fertilizers topped the Saudi non-oil exports to the US, reaching $688 million, while Saudi exports of urea fertilizer doubled during the past decade to $100 million.

Metals and mining exports from Saudi Arabia to the United States continued to grow in 2021, topped by aluminum and its products reaching $347 million, making it the third highest Saudi non-oil export to the US.

Other Saudi metals witnessed a 102 percent increase in export volume to the US, as Saudi Arabia is the fourth largest non-oil exporter to the United States.

US exports

According to the report, US exports to Saudi Arabia diversified across a range of electrical, mechanical, industrial, agricultural, and pharmaceutical industries.

Cars ranked the first for highest US exports to Saudi Arabia in 2021, with a total of $1.9 billion. Consumer cars comprised about 75 percent, while the remaining 25 percent included military vehicles, tractors, and trailers.

The second largest export category was boilers, machinery, spare parts, and others, constituting 12 percent of US goods exported to Saudi Arabia in 2021.

Historical data

According to data recorded by the Saudi Ministry of Commerce, the volume of trade exchange between the Kingdom and the US in the past five years amounted to $166.1 billion, while the trade exchange between the two countries reached $36.5 billion in 2017, and $44.2 billion in 2018, $32 billion in 2019, and $22.9 billion in 2020.

Attractive Gulf market

Economist Jarmo Kotilaine said Saudi Arabia's strategic importance is growing, especially among US companies and investors, because it has dynamic markets in the "heart of the old world" with easy access to the surrounding geographic areas.

Kotilaine told Asharq Al-Awsat that Saudi markets are characterized by a young, dynamic demographic and ambitious diversification agendas, noting that they all require increasing trade volumes and capital mobilization.

He explained that given its top-notch infrastructure and regulatory reforms, the Arabian Peninsula had become a true crossroads of the global economy and a hub for intercontinental flows of trade, travel, and capital.

The expert noted that the region is becoming an increasingly important target for US companies and investors looking for new opportunities in the Arabian Peninsula and beyond.

Kotilaine said that investments are also increasing in Saudi Arabia, noting that the Kingdom now houses an increasing number of companies with global prospects, where giant companies such as Aramco and SABIC have been creating a global presence for years.

Similarly, many Saudi investors are looking for strategic opportunities globally.

The Public Investment Fund (PIF) combines value investment and strategic location through acquiring assets that are not only logical from a financial perspective but can also contribute to diversifying the Saudi economy and progress towards more innovation, said Kotilaine.

A new chapter

Kotilaine stressed that Saudi-US trade is now poised for a new essential and significant stage in bilateral relations, noting that the most important opportunity is to shift the focus of the relationship more from the exchange of goods to investment and knowledge exchange.



IEA: The Age of Electricity is Coming, We Will Still Use Oil and Natural Gas

FILE PHOTO: A view of the logo of the International Energy Agency in Paris, France, December 15, 2023. REUTERS/Sarah Meyssonnier/File Photo
FILE PHOTO: A view of the logo of the International Energy Agency in Paris, France, December 15, 2023. REUTERS/Sarah Meyssonnier/File Photo
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IEA: The Age of Electricity is Coming, We Will Still Use Oil and Natural Gas

FILE PHOTO: A view of the logo of the International Energy Agency in Paris, France, December 15, 2023. REUTERS/Sarah Meyssonnier/File Photo
FILE PHOTO: A view of the logo of the International Energy Agency in Paris, France, December 15, 2023. REUTERS/Sarah Meyssonnier/File Photo

The concentration of a small number of countries in clean energy supply chains is an emerging challenge for Southeast Asian countries, International Energy Agency Executive Director Fatih Birol said on Tuesday, amid fast-rising power demand in the region.

"The age of electricity is coming. We will still use oil, still use natural gas including LNG, but electricity demand is growing very strongly," Birol told delegates at the Singapore International Energy Week conference.

Birol did not identify the countries dominating clean energy supplies, but China is by far the largest global supplier of renewable energy equipment, from solar panels ⁠to wind turbines, electric ⁠vehicles and batteries.

Electricity demand in ASEAN countries is rising at twice the pace of overall energy consumption, driven by industrial electrification, air-conditioning needs, electric vehicles and data centers, he said.

Southeast Asian nations have emerged as key drivers of China's clean-energy export boom, splashing out over $20 billion on Chinese-made clean-tech products so far in 2026, according ⁠to energy think tank Ember.

Birol also warned that geopolitical tensions have become an increasingly dominant force in global energy markets.

"In my professional life, I have never, never ever seen the dark and long shadow of geopolitics dominating the energy sector in such a way," Reuters quoted him as saying. "I can only imagine that the role of geopolitics will be much more pronounced, and this means energy security is going to become even more important than it is today."

Birol said the Middle East war has triggered fundamental changes in global energy consumption patterns, ⁠spurring growth in ⁠solar, coal and nuclear power as well as electric vehicle adoption.

"I see in the last eight months very strong growth of electric car sales," he said, adding that global electric vehicle sales outside China had risen 60% above previous trends over the period because of the conflict.

Consumption of alternative energy sources has increased as diesel prices have jumped about 200% and LNG prices have risen 250% from pre-war levels, according to Birol.

He said on Monday at the same conference that he does not expect energy markets in 2027 to return to where they were before the US-Israeli war on Iran began.


Cyprus Seals $1.8 Bn Deal to Develop First Commercial Gas Project

The Cypriot Cronos field in the Mediterranean is being developed by a joint venture between operator Eni and TotalEnergies (X)
The Cypriot Cronos field in the Mediterranean is being developed by a joint venture between operator Eni and TotalEnergies (X)
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Cyprus Seals $1.8 Bn Deal to Develop First Commercial Gas Project

The Cypriot Cronos field in the Mediterranean is being developed by a joint venture between operator Eni and TotalEnergies (X)
The Cypriot Cronos field in the Mediterranean is being developed by a joint venture between operator Eni and TotalEnergies (X)

Cyprus signed contracts worth $1.8 billion with Italian energy provider Eni on Monday to develop the Mediterranean island nation's first commercial gas project, with production slated for 2028 on the project in partnership with France's TotalEnergies.

European countries have stepped up efforts to use domestic energy resources with the Ukraine and Iran wars roiling global energy markets and supply in recent years.

The agreements to develop the field in Cyprus' exclusive economic zone cover engineering, construction, installation and drilling work, allowing natural gas to be transported to Egypt for processing and liquefaction before delivery mainly to European markets.

"Eni has signed the main engineering, procurement, construction and drilling contracts for the development of the Cronos Project, marking the start of the project's execution phase and a key milestone towards the monetization of Cyprus' first gas development," AFP quoted the Italian firm as saying in a statement.

"As Eni's first development project in Cyprus and the country's first hydrocarbon development, Cronos represents a strategic milestone."

Cypriot President Nikos Christodoulides in a statement hailed the agreement as a "decisive step towards exploiting our country's natural wealth.”

He said the contracts for the "first commercial exploitation of Cypriot natural gas" were worth up to $1.8 bn.

"It represents a strong vote of confidence in our country's energy prospects with significant geopolitical and economic implications," he added.

Cypriot Energy Minister Michalis Damianos said the project marked Cyprus' transition from offshore exploration and discoveries to developing and producing its gas reserves.

Kronos is estimated to contain more than three trillion cubic feet of natural gas.

Existing Egyptian infrastructure will be used, including facilities linked to the large Zohr gas field, with the gas to be liquefied at the Damietta terminal for export.

Using existing infrastructure is expected to reduce costs and accelerate the route to market, while deepening energy cooperation between Cyprus and Egypt.

"A regional value chain is being created that connects Cyprus's resources, Egypt's infrastructure and European demand," said Damianos.

Cyprus has discovered offshore gas but has not yet brought a field into commercial production.

Kronos is seen as a key test of its ability to turn those discoveries into exports.

Eni and Total hold the majority of exploration blocks -- seven of 13 south of the island -- licensed by the Cyprus government.

The eastern Mediterranean has become an energy hot spot, with significant natural gas finds off Israel and Egypt.


HSBC Shares Tumble 6% after Third-quarter Revenue Disappoints, Wealth Growth Slows

People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
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HSBC Shares Tumble 6% after Third-quarter Revenue Disappoints, Wealth Growth Slows

People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)

HSBC's shares slid 6% on Tuesday after revenue undershot estimates and growth at its wealth business slowed, highlighting the challenge big banks face to sustain recent record profits.

Europe's largest bank reported a 32% surge in pretax profit to $9.6 billion for the July-September quarter, in line with estimates. But investors and analysts focused on the lack of upgrades to the bank's performance guidance and underwhelming third-quarter revenue of $18.6 billion against forecasts for $19 billion.

The drop in the bank's shares underscores how recent strong results from European lenders have increased investor expectations for performance, even as the impact of the Iran war on inflation and interest rates has created a tough environment for banks. The shares remain up 9% for the year to ⁠date.

HSBC also launched ⁠a share buyback of up to $1 billion, the same amount as the previous quarter and a move that had boosted shares in previous reporting periods but is now largely expected by investors.

"There is sometimes a market expectation that we upgrade guidance or targets," CFO Pam Kaur told reporters on a conference call when asked about the share drop.

According to Reuters, analysts noted that the bank's net interest income slightly missed expectations, while fee income from its key wealth growth pillar was steady but ⁠unspectacular.

Escalating deposit competition in Hong Kong and the UK, HSBC's two core markets, are expected to push up interest expenses, they said. Time deposits in the bank's Hong Kong portfolio rose two percentage points quarter-on-quarter to 38%, but Jefferies analysts noted that the shift to chase higher deposits by offering higher interest rates is expected to erode margins.

Revenue for HSBC's wealth division was flat at $2.7 billion. That compared with 15% and 23% year-on-year revenue growth in the first two quarters.

The performance of HSBC's wealth business is under particular scrutiny because the British bank, like its peers, is focusing growth on fee-generating businesses such as wealth management as lending comes under pressure from falling interest rates.

Analysts warned that Asia-focused banks are bracing for a slowdown in wealth momentum ⁠following robust gains driven ⁠by Chinese capital inflows.

Kaur said on the call that China's tightening of wealth flows has prompted clients to shift from other banks in Hong Kong to HSBC.

"We picked up more business."

HSBC benefited from the absence of legal provisions booked in the same quarter a year earlier. It also said expected credit losses tumbled 17% to $800 million, thanks to a reduction in charges linked to Hong Kong's real estate sector as well as its UK and Mexican wealth businesses.

British banks' strong recent results have prompted calls from trade unions and activist groups for tax hikes on the sector in finance minister John Healey's first budget, due on Wednesday.

Bank bosses have lobbied hard to avoid such an increase in sector levies, arguing it would curb lending and make Britain less competitive.

HSBC announced an interim dividend of $0.1 per share, the same as the previous quarter.