SAUDI SHOWS TRADE RESILIENCE AS EXPORTS RISE

Saudi Arabia’s exports picked up in June compared to May, as trade flows rebounded from the COVID-19 crisis.

Latest available data from the General Authority for Statistics notes that Saudi merchandise exports jumped 19.13% in June versus May. Indeed, June saw SAR 43.49 billion in exports, its best performance in three months. The country’s exports in the first half of the year stood at SAR 314.96 billion.

Understandably, the kingdom’s merchandise exports decreased by 43.6% in June 2020 compared to June 2019, which saw SAR 77.17 billion in exports. The decrease originated mainly from oil exports, which fell 54.8% in the same period, the statistics agency noted.

The share of non-oil exports rose to 37.3% in June compared to May, its highest level since February, amid signs of non-oil activity picking up.

Among non-oil exports, chemical goods stood at SAR 4.9 billion, plastics SAR 4.8 billion and vehicles and aircrafts were at SAR 2.13 billion, GASTAT data shows.

Imports for the month of June were at SAR 44.5 billion, taking total trade volumes for the month to SAR 88 billion – its best figure in three months. The first half of the year saw overall imports of SAR 241.4 billion.

The kingdom is boosting trade and logistics infrastructure so that it is poised to take advantage of trade rebound once the health crisis is over.

In June, CMA CGM, the French container and shipping company, said it was boosting its JEDDEX service with two direct weekly calls at Ain Sokhna and Aqaba to provide a competitive transit time between Egypt, Jordan, Mogadishu and Mombasa, in addition to a wider offer for the Intra Red Sea Market.

“A fifth ship will be added, enhancing service schedule reliability,” the company said. “Our Jeddah hub will ensure smooth connection to Yemen, Somaliland, Eritrea, and Sudan. Via Ain Sokhna, efficient intermodal solutions are proposed from / to inland destinations in Egypt.” 

Also in June, Dubai-based DP World launched its first direct shipping line connecting UAE’s Jebel Ali Port in Dubai with Egypt’s Sokhna Port through the Jeddah Islamic Port.

Last year, DP World was awarded a 30-year build-operate-transfer (BOT) concession by Mawani, the Saudi Ports Authority, for the management and development of the Jeddah South Container Terminal at the multi-purpose Jeddah Islamic Port.

DP World plans to invest up to USD 500 million to revamp the Jeddah Islamic Port and enable it to serve ultra-large container carriers (ULCCs).

“The direct shipping line will connect Jeddah Islamic Port with more ports in the East and the West, making it a central regional and global gateway, and establishing the kingdom as a leading logistics centre,” said Eng. Saad Alkhalb, president of Saudi Ports Authority. “The line will also help facilitate trade across all the global supply chains, increase transhipment volumes and gain an upgraded share of the ships on the Red Sea Coast. All these benefits are expected to boost the overall competitiveness and efficiency of the operations and services provided by Saudi ports while increasing investment opportunities in this vital sector.”

Meanwhile, Saudi Global Ports, a subsidiary of Singapore-based PSA International, secured a BOT deal with Mawani to build the first and second container terminals in the King Abdulaziz Port in Dammam.