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Surge in Saudi Arabia's Non-Oil Exports to China Highlights Deepening Trade Relations
Saudi Arabia's non-oil exports to China increased by 70% in December, underscoring a significant growth in bilateral trade.
In December 2024, Saudi Arabia's non-oil exports to China surged to SR3.68 billion (approximately $980 million), marking a remarkable increase of 69.58 percent from the previous month, as reported by the General Authority for Statistics (GASTAT).
This growth is indicative of the strengthening economic ties between the two nations, with Saudi Arabia continuing to be China's largest trading partner in the Middle East since 2001.
The export composition predominantly featured plastic and rubber goods valued at SR1.12 billion, followed closely by chemical products at SR1.11 billion, and transport parts reaching SR1.02 billion.
In comparison, non-oil exports to China were only SR2.17 billion in November and SR2.35 billion in October, signaling a clear upward trend.
This significant uptick in non-oil shipments aligns with Saudi Arabia's broader economic strategy to diversify its economy, reducing reliance on oil revenues which have historically dominated its financial landscape.
As part of this strategy, the Kingdom's Purchasing Managers’ Index (PMI) recorded a robust 60.5 in January 2024, the highest level in a decade, reflecting strong growth in the non-oil private sector.
Comparatively, PMIs in the region indicated growth, with the UAE at 55, Kuwait at 53.4, Qatar at 50.2, and Egypt at 50.7.
In December, the United Arab Emirates emerged as the top destination for Saudi Arabia's non-oil exports, with outbound shipments of SR6.46 billion, despite a decline of 9.90 percent compared to the previous month.
Exports to the UAE included machinery and mechanical appliances worth SR3.15 billion and transport parts valued at SR1.32 billion.
India ranked third among the top destinations, receiving SR1.86 billion worth of non-oil goods, albeit a decline of 26 percent from November.
Other notable recipients included the United States with SR1.64 billion, Bahrain at SR1.19 billion, and Turkey at SR902.7 million.
Additionally, non-hydrocarbon products worth SR888 million were sent to Egypt, with Belgium receiving SR826.7 million and Kuwait at SR703.7 million.
Overall, Saudi Arabia's non-oil exports totaled SR29.45 billion in December, reflecting an 18.1 percent increase from the same month in the preceding year.
The Minister of Economy and Planning, Faisal Al-Ibrahim, noted that non-oil activities accounted for 52 percent of the Kingdom's GDP and have been growing at a rate of 20 percent since the launch of Vision 2030.
Transportation logistics played a crucial role in December, with sea freight handling SR19.33 million in non-energy goods, land shipments totaling SR5.38 billion, and air freight amounting to SR4.73 billion.
Jeddah Islamic Port emerged as the primary departure point for non-hydrocarbon exports, processing goods valued at SR3.92 billion.
Conversely, despite the gains in non-oil exports, Saudi Arabia's total merchandise exports experienced a decrease of 2.8 percent year-on-year, reaching SR94.29 billion in December.
This decline was largely attributed to mandated oil production cuts from OPEC.
The proportion of oil exports within total merchandise exports fell from 74.3 percent in December 2023 to 68.8 percent in December 2024.
Trade with Gulf Cooperation Council (GCC) countries saw an increase, with total exports reaching SR13.68 billion, up by 6.04 percent from the previous year.
Additionally, exports to Asia were robust at SR49.39 billion, while shipments to North America and Europe accounted for SR4.73 billion and SR8.73 billion, respectively.
On the import side, Saudi Arabia's total imports rose by 27.1 percent year-on-year, reaching SR79.03 billion in December.
Chinese imports were particularly significant, amounting to SR18.60 billion, primarily driven by mechanical appliances and electrical equipment valued at SR7.73 billion.
Imports from the United States totaled SR7.17 billion, with additional contributions from the UAE and India, reaching SR4.30 billion and SR3.81 billion, respectively.
Key entries for imports included King Abdulaziz Sea Port in Dammam, which handled SR22.01 billion worth of goods, followed by Jeddah Islamic Sea Port at SR15.41 billion.
Overall, Saudi Arabia's trade dynamics in December reflect critical trends in both export and import activities, highlighting the Kingdom's strategic positioning in global trade.
This growth is indicative of the strengthening economic ties between the two nations, with Saudi Arabia continuing to be China's largest trading partner in the Middle East since 2001.
The export composition predominantly featured plastic and rubber goods valued at SR1.12 billion, followed closely by chemical products at SR1.11 billion, and transport parts reaching SR1.02 billion.
In comparison, non-oil exports to China were only SR2.17 billion in November and SR2.35 billion in October, signaling a clear upward trend.
This significant uptick in non-oil shipments aligns with Saudi Arabia's broader economic strategy to diversify its economy, reducing reliance on oil revenues which have historically dominated its financial landscape.
As part of this strategy, the Kingdom's Purchasing Managers’ Index (PMI) recorded a robust 60.5 in January 2024, the highest level in a decade, reflecting strong growth in the non-oil private sector.
Comparatively, PMIs in the region indicated growth, with the UAE at 55, Kuwait at 53.4, Qatar at 50.2, and Egypt at 50.7.
In December, the United Arab Emirates emerged as the top destination for Saudi Arabia's non-oil exports, with outbound shipments of SR6.46 billion, despite a decline of 9.90 percent compared to the previous month.
Exports to the UAE included machinery and mechanical appliances worth SR3.15 billion and transport parts valued at SR1.32 billion.
India ranked third among the top destinations, receiving SR1.86 billion worth of non-oil goods, albeit a decline of 26 percent from November.
Other notable recipients included the United States with SR1.64 billion, Bahrain at SR1.19 billion, and Turkey at SR902.7 million.
Additionally, non-hydrocarbon products worth SR888 million were sent to Egypt, with Belgium receiving SR826.7 million and Kuwait at SR703.7 million.
Overall, Saudi Arabia's non-oil exports totaled SR29.45 billion in December, reflecting an 18.1 percent increase from the same month in the preceding year.
The Minister of Economy and Planning, Faisal Al-Ibrahim, noted that non-oil activities accounted for 52 percent of the Kingdom's GDP and have been growing at a rate of 20 percent since the launch of Vision 2030.
Transportation logistics played a crucial role in December, with sea freight handling SR19.33 million in non-energy goods, land shipments totaling SR5.38 billion, and air freight amounting to SR4.73 billion.
Jeddah Islamic Port emerged as the primary departure point for non-hydrocarbon exports, processing goods valued at SR3.92 billion.
Conversely, despite the gains in non-oil exports, Saudi Arabia's total merchandise exports experienced a decrease of 2.8 percent year-on-year, reaching SR94.29 billion in December.
This decline was largely attributed to mandated oil production cuts from OPEC.
The proportion of oil exports within total merchandise exports fell from 74.3 percent in December 2023 to 68.8 percent in December 2024.
Trade with Gulf Cooperation Council (GCC) countries saw an increase, with total exports reaching SR13.68 billion, up by 6.04 percent from the previous year.
Additionally, exports to Asia were robust at SR49.39 billion, while shipments to North America and Europe accounted for SR4.73 billion and SR8.73 billion, respectively.
On the import side, Saudi Arabia's total imports rose by 27.1 percent year-on-year, reaching SR79.03 billion in December.
Chinese imports were particularly significant, amounting to SR18.60 billion, primarily driven by mechanical appliances and electrical equipment valued at SR7.73 billion.
Imports from the United States totaled SR7.17 billion, with additional contributions from the UAE and India, reaching SR4.30 billion and SR3.81 billion, respectively.
Key entries for imports included King Abdulaziz Sea Port in Dammam, which handled SR22.01 billion worth of goods, followed by Jeddah Islamic Sea Port at SR15.41 billion.
Overall, Saudi Arabia's trade dynamics in December reflect critical trends in both export and import activities, highlighting the Kingdom's strategic positioning in global trade.
