Saudi Arabia’s non-oil exports rose 7.5% in August, reaching SAR 27.5 billion ($7.3 billion). This marks an increase from SAR 25.6 billion ($6.8 billion) in August last year. The rise follows significant investments and improvements in the Kingdom’s logistics infrastructure.
Overall Export Decline Led by Oil Drop
Total exports fell 9.8% year-on-year in August, totaling SAR 92.8 billion ($24.7 billion), according to the Kingdom’s General Authority for Statistics (GASTAT). A sharp 15.5% drop in oil exports primarily caused this decline. Oil exports fell by SAR 12 billion ($3.2 billion) compared to the same month last year.
Oil Exports and OPEC+ Production Cuts
Saudi oil exports amounted to SAR 65.3 billion ($17.3 billion) in August, down from SAR 77.3 billion in August 2023. This decline aligns with production cuts by the OPEC+ alliance. Consequently, oil exports as a share of total exports decreased to 70.3% from 75.1% the previous year.
Imports and Trade Balance Shrink
Imports dropped by 3.9% to SAR 64.8 billion ($17.2 billion), compared to SAR 67.4 billion in August 2023. The trade balance surplus narrowed by 21% year-on-year, reaching SAR 27.99 billion in August 2024. However, the surplus improved over July, rising by over SAR 10 billion.
Infrastructure, Investments Boost Non-Oil Sector
Economic analysts attributed the non-oil export growth to infrastructure enhancements and increased investments in manufacturing and technology. Foreign direct investment (FDI) inflows reached approximately SAR 96 billion in 2023, surpassing the National Investment Strategy target of SAR 83 billion by 16%. This FDI accounted for 2.4% of Saudi GDP last year.
Vision 2030 Drives Economic Diversification
Analysts highlighted that the decline in the trade surplus was due to falling oil exports and rising imports. They expect non-oil exports to grow further, driven by Vision 2030 goals, which aim to diversify Saudi Arabia’s economy and reduce oil dependency.
