Economists anticipate that Saudi Arabia’s share of global foreign trade will rise in the coming years. Recent data from the General Authority for Statistics (GASTAT), released on Thursday, showed that non-oil exports, including re-exports, grew by 10.5% in the second quarter of this year, reaching approximately SAR 73.73 billion ($19.65 billion). This marks an increase from around SAR 66.74 billion in the same period last year.
Excluding re-exports, non-oil exports rose by 1.4% to SAR 51.4 billion in the second quarter of 2024, up from about SAR 50.69 billion in the second quarter of 2023.
Total merchandise exports experienced a slight decline of 0.2% year-on-year in the second quarter, totaling approximately SAR 249.51 billion.
The trade balance surplus was around SAR 98.37 billion for the second quarter, compared to approximately SAR 104.7 billion in the same period last year.
Dr. Mohammed bin Dulaim Al-Qahtani, Professor of International Business at King Faisal University, told Asharq Al-Awsat that Saudi Arabia’s foreign trade volume reached approximately SAR 491 billion ($130.9 billion) in the second quarter of 2024. During this period, exports remained stable compared to the previous year, while imports increased by 3.3%.
Al-Qahtani noted that the Kingdom’s foreign trade saw significant developments in Q2 2024, totaling SAR 490.6 billion ($130.8 billion). Imports increased by 3.3% compared to the same quarter in 2023.
The expert attributed the growth to Saudi Vision 2030 that has successfully diversified the economy away from oil dependency.
He remarked: “Vision 2030 has made significant strides in expanding the economy and reducing reliance on oil. This success is evident in the growth of non-oil exports this year. The vision has also expanded export markets, diversified revenue sources, and enhanced global competitiveness.”
Despite these achievements, Al-Qahtani identified five key challenges facing Saudi foreign trade: fluctuations in oil prices, regional and international geopolitical tensions, slowing global economic growth - which affects demand for Saudi products and services - increased transportation and insurance costs, and disruptions in supply chains.
Among the fastest-growing sectors in Saudi trade are manufacturing industries, particularly petrochemicals and plastic products, as well as technology and digital services, reflecting the global shift towards knowledge-based economies.
Dr. Osama bin Ghanem Al-Obaidi, advisor and professor of commercial law, told Asharq Al-Awsat that foreign trade plays a crucial role in the development and growth of the national economy. He stressed that the Kingdom has focused on enhancing this sector through significant economic reforms introduced by the government in recent years as part of its Vision 2030 goals.
Al-Obaidi noted that Saudi non-oil exports, such as chemicals, polymers, minerals, dates, food products, pharmaceuticals, and aluminum, have seen considerable growth. This increase is attributed to the credit facilities provided by the Saudi Export-Import Bank, which have facilitated the expansion of Saudi products in international markets.
