Saudi Arabia Records 16.6% Increase in Non-Oil Exports:
Saudi Arabia recorded a 16.6% increase in its non-oil exports for August. The numbers were recently released, with total non-oil revenue peaking at over $7 billion. This is coming after Saudi Arabia recorded a 31% increase in its non-oil exports in the second quarter of this year. Given that Saudi Arabia has been intentionally expanding its green energy footprint and increasing its non-oil exports, these numbers indicate that the Kingdom is on the right track.
For many years, Saudi Arabia was globally recognized as an oil-dependent country. This was largely unsurprising, as the Kingdom got the bulk of its revenue from the proceeds of oil sales. However, the trend started to change when Saudi Arabia committed to reducing its carbon footprint and integrating green energy. The Kingdom has pledged to achieve net zero emissions by 2060.
Ever since, Saudi Arabia has intensified efforts to enhance its non-oil exports. Primary focus areas for this economic diversification include chemicals and industry-allied products, plastics, and services. Although services have not been prominently established as a primary export from Saudi Arabia.
The Saudi Arabian government also created the Saudi Export Development Authority to increase its non-oil export count. Looking at the numbers, the policy options seek to have paid off immensely.
Breakdown of the Numbers
As earlier stated, Saudi Arabia recorded a 16.6% increase in its non-oil exports. Notably, the value of Saudi Arabia’s merchandise exports grew by a whopping 49% in the same month. According to the General Authority for Statistics (GASTAT), Saudi Arabia’s non-oil export numbers of $7 billion represent an increase of over 16% compared to the non-oil exports recorded in August 2021. These non-oil exports were primarily driven by chemical and allied industries, which accounted for over 35% of the total export count.
Saudi Arabia’s Steady Growth in Non-Oil Exports
Since Saudi Arabia committed to enhancing its non-oil exports, the Kingdom has consistently recorded significant export growth. For instance, the Kingdom’s non-oil exports grew by 31% in the second quarter of 2022. With these figures, Saudi Arabia’s non-oil exports peaked at $22.9 billion in the first six months of 2022 alone. In the previous quarter, non-oil exports also grew by 10%.
Chemical products have primarily driven these impressive export numbers. Although Saudi Arabia’s oil exports have equally remained steady, the non-oil export count has started to match up. This trend indicates that Saudi Arabia is well-positioned to absorb any possible shocks in the global oil market.
Over the past decade, Saudi Arabia has made a name for itself as a global technology hub and a forward-thinking territory. The recent efforts to enhance non-oil exports further indicate that Saudi Arabia is focused on strengthening its resilience even in the face of waning global demand for oil. As the Kingdom progresses in its economic diversification drive, other Middle Eastern countries will likely follow in its footsteps.