Saudi Arabia’s non oil exports increased by 18.1% to $136.2 billion in December 2024 as compared to the previous year.
This total trade was led by a strong chemical sector, which accounted for 25.9% of all the exports.
The 4th Quarter figures also revealed a 47.3% increase in re exports, helping to establish Saudi Arabia as a growing logistics hub in the Middle East.
Rising of Saudi Arabia’s Non-Oil Exports
The Kingdom of Saudi Arabia has achieved a significant milestone in its journey towards economic diversification, with non-oil exports soaring to an impressive $136.2 billion in December 2024, as evidenced by the latest figures released by the General Authority for Statistics (GASTAT).
This remarkable growth underscores the nation’s commitment to reducing its dependence on oil revenues and fostering a more robust and diversified economy.
The data paints a picture of a rapidly diversifying economy, with non-oil exports playing an increasingly significant role in the Kingdom’s trade balance.
Annual Growth in Non-Oil Exports
The most striking statistic is the 18.1% year-on-year increase in non-oil exports recorded in December 2024. This substantial growth rate indicates a robust and expanding non-oil sector, capable of competing on the global stage.
The rise in exports spans various industries, showcasing the breadth of Saudi Arabia’s economic diversification efforts.
Re-Exports: A Growing Market
Alongside the growth in non-oil exports, re-exports, which involve the export of goods that were previously imported, have emerged as a particularly dynamic segment of Saudi Arabia’s trade portfolio.
With a remarkable 23.4% increase compared to December 2023, re-exports are becoming an increasingly important component of the Kingdom’s trade activities.
This surge in re-exports points to Saudi Arabia’s growing role as a regional trade and logistics hub, facilitating the movement of goods throughout the Middle East and beyond.
Total Trade Volume and Balance
The combined value of exports and imports reached an impressive SR510.9 billion ($136.2 billion) in December 2024. This substantial trade volume underscores the Kingdom’s significant economic activity and its integration into global trade networks.
Moreover, the trade balance remained positive, with a surplus of SR44.9 billion ($12 billion), highlighting Saudi Arabia’s strong export performance even as imports grew.
Saudi Arabia’s Quarterly Performance
Looking at the fourth quarter of 2024 provides additional context for Saudi Arabia’s export growth. Non-oil exports, including re-exports, saw a 17.3% increase compared to the same quarter in 2023.
This consistent growth over a three-month period suggests that the December figures are part of a broader trend rather than an isolated spike.
The quarterly data also reveals some nuances in the export landscape:
- National non-oil exports (excluding re-exports) grew by 8.2%
- Re-exports surged by an impressive 47.3%
- Overall merchandise exports declined by 6.1%, primarily due to a 13.3% drop in oil exports
These figures highlight the shifting composition of Saudi Arabia’s export basket, with non-oil sectors gaining prominence as oil exports face challenges.
Chemical Products: Leading Non-Oil Export Growth
According to the International Trade Statistics Bulletin for December 2024, chemical industry products accounted for a substantial 25.9% of total non-oil exports. This significant share demonstrates the sector’s importance in Saudi Arabia’s export portfolio and its potential for further growth.
Q4 2024: Contrasts and Opportunities
The fourth quarter of 2024 presented a mixed picture for Saudi Arabia’s trade performance, with some sectors showing robust growth while others faced challenges. This period offers valuable insights into the dynamics of the Kingdom’s evolving economy and the progress of its diversification efforts.
Key highlights of Q4 2024 include:
- Non-oil exports (including re-exports) increased by 17.3% compared to Q4 2023.
- National non-oil exports (excluding re-exports) rose by 8.2%.
- Re-exports surged by an impressive 47.3%.
- Overall merchandise exports declined by 6.1%.
- Oil exports dropped by 13.3%.
- Imports increased by 15.5%.
These figures reveal several important trends:
Firstly, the continued growth in non-oil exports, particularly the dramatic rise in re-exports, demonstrates the success of Saudi Arabia’s efforts to diversify its economy and establish itself as a regional trade hub.
Secondly, the decline in oil exports and their reduced share of total exports (from 76.4% in Q4 2023 to 70.5% in Q4 2024) reflects both global market conditions and the Kingdom’s strategic shift towards a more balanced economic model.
Aligning with Vision 2030
Saudi Arabia’s impressive export performance in 2024 is not a standalone achievement but a crucial component of the Kingdom’s ambitious Vision 2030 plan. This comprehensive strategy, launched in 2016, aims to transform Saudi Arabia into a diverse, knowledge-based economy less dependent on oil revenues.
Transforming Saudi Arabia’s Economy
The remarkable growth in Saudi Arabia’s non-oil exports, reaching $136.2 billion in December 2024, marks a significant milestone in the Kingdom’s journey towards economic diversification and sustainable growth.
This achievement is not just a number; it represents a fundamental shift in Saudi Arabia’s economic landscape and its role in the global economy.
More Saudi Initiatives to Boost Exports
Saudi Arabia’s New Incentives to Boost Exports
Saudi Arabia has revealed 15 new incentives to drive imports and exports across the Kingdom.
Under the leadership of the Saudi Zakat, Tax, and Customs Authority (ZATCA), the Authorized Economic Operator program unites 14 government bodies to enhance trade and logistics, aiming to turn the Kingdom into a global logistics hub.
Saudi MODON’s World’s Largest Food Cluster
Saudi Modon has introduced the World’s Largest Food Cluster in Jeddah to strengthen food security and drive exports.
Covering 11 million square meters, the cluster is set to draw SAR 20 billion in investments and generate 43,000 jobs by 2035.
It is also expected to boost exports by SAR 8 billion, add SAR 7 billion to the GDP, and lower operational expenses by as much as 12%.
Keep Reading: Saudi Arabia Announces 15 New Incentives to Boost the Kingdom’s Imports and Exports
