TRADE

OIL AND NON-OIL EXPORTS GIVE SAUDI TRADE A LIFT

Saudi trade flows surged in February. Overall merchandise exports rose 64.7% to SAR 108.4 billion during the month compared to the same period last year, according to latest available data from the General Authority for Statistics (GaStat).

“This increase originated mainly from oil exports, which rose by SAR 36.8 billion or 78.1% in the same period,” GaStat said. “The share of oil exports in total exports increased from 71.6% in February 2021 to 77.5% in February 2022. Compared to January 2022, total merchandise exports increased by SAR 0.3 billion or 0.3%.

The kingdom’s year-on-year non-oil exports rose 31% in February 2022 to stand at SAR 24.4 billion. Merchandise imports increased by 18.2% (SAR 7.4 billion) in February 2022. The value of imports amounted to SAR 48.3 billion in February 2022 compared to SAR 40.8 billion in February 2021.

Chemical and allied industries’ products led the non-exports segment, rising 80% to SAR 3.9 billion and making up 35.7% of all non-oil merchandise exports. Plastics and rubber articles rose 20.1% to SAR 1.3 billion, or 31.1% of non-oil merchandise exports. Chemical and allied industries’ products were also biggest import items in February, accounting for 20% of all imports, followed by mineral products, which made 13.2% of total merchandise imports.

China emerged as the biggest export market for Saudi non-oil exports reaching SAR18.5 billion (17.1% of total exports), followed by India and Japan with SAR 13.1 billion (12.1% of total exports) and SAR 11.5 billion (10.6% of total exports), respectively. South Korea, USA, UAE, Egypt, Singapore, Bahrain, and Netherlands were the other countries that ranked in the top 10 destinations. Exports of Saudi Arabia to those 10
countries amounted to SAR 79.2 billion, accounting for 73.1% of total exports.

China was the biggest source market for Saudi imports, reaching SAR 11.0 billion (22.8% of total imports), followed by the USA and the UAE with imports of SAR 4.7 billion (9.8% of total imports) and SAR 3.1 billion (6.5% of total imports), respectively. India, Germany, Egypt, Italy, Japan, France, and South Korea were the other countries that ranked in the top 10 countries for imports. Imports of Saudi Arabia from those 10 countries amounted to SAR 30.6 billion, accounting for 63.4% of total imports.

                 

 

Saudi ports were also busy as pent-up demand led to hectic economic activity. Cargo throughput tonnage at Saudi ports in the first quarter of 2022 rose 7.18% to 74 million tonnes, while the number of transshipment containers increased 5.91% to 1.3 million TEUs,compared to the same period last year, according to the Saudi Ports Authority (Mawani).

Saudi ports also recorded a 12.85% surge in the number of cars handled to 219,488, while the number of passengers rose 61.70% to 258,076, and the number of vessels increased 0.28% to 3,186 during the period.

“While Saudi ports have set these milestones as a result of development in the national economy, and growth of trade activity in the kingdom, as well as forming strategic partnerships with global major shipping lines, all of which contributes to strengthening Saudi ports connections with eastern and western ports, and increasing throughput volumes,” Mawani said. 

Initiatives such as smart ports, which automates operations at Saudi ports by incorporating 5G technology, have helped Mawani reinforce Saudi Arabia’s position as a global logistics hub that connects three continents.

The kingdom’s 13 ports on the Arabian Gulf and Red Sea, through which 13% of global trade passes, handle 70% of Saudi’s imports and 95% of its exports through 291 docks. 

According to a Saudi Press Agency report, “the strategy aims at making the Kingdom of Saudi Arabia a global centre for transport and logistics services”, increasing the logistics sector’s GDP contribution to 10% – up from its current rate of 6%. The strategy will also aim to make Saudi among the top 35 countries on the cross-border commerce index, and among the top six nations in the quality of roads, shipping more than 4.5 million tonnes through air annually, as well as increasing its network to over 250 international destinations. 

Saudi Arabia is also forging closer ties with its key trading partners. In April, the Riyadh Chamber signed a co-operation agreement with the China Foreign Trade Center (Canton Fair) to expand commercial, industrial, investment, and trade relations between the two countries.