ASIAN TRADE

TRADE WINDS BLOWING EASTWARD FOR SAUDI

Saudi Arabia’s non-oil exports (including re-exports) rose by 13.1% in 2024 compared to the previous year, underscoring continued progress in economic diversification efforts, according to latest annual data from the General Authority of Statistics (GASTAT).

National non-oil exports (excluding re-exports) also recorded a solid 4% year-on-year (YoY) increase, while the value of re-exported goods surged by 43%, indicating growing activity in trade facilitation and regional logistics. 

Despite this positive momentum in non-oil trade, total merchandise exports declined by 4.5% in 2024, largely due to a 9.7% drop in oil exports. As a result, the share of oil in total exports fell from 77.3% in 2023 to 73.1% in 2024, marking a notable shift toward a more balanced export composition. 

On the import side, Saudi Arabia saw a 12.5% increase in merchandise imports, reflecting robust domestic demand and possibly higher capital equipment inflows to support industrial development. Consequently, the merchandise trade surplus narrowed by 35.7% compared to 2023 figures. 

The ratio of non-oil exports (including re-exports) to imports improved slightly, rising from 35.1% in 2023 to 35.3% in 2024. This uptick was driven by higher growth rate of non-oil exports relative to imports, despite the overall trade surplus decline. 

Chemical products remained Saudi Arabia’s leading non-oil export category in 2024, accounting for 25.5% of total non-oil exports, although their value dipped by 2.8% YoY. Following closely were plastics, rubber, and their derivatives, which comprised 23.5% of non-oil exports and recorded a 6.6% annual increase. 

On the import front, machinery, electrical equipment, and parts made up 25.3% of total imports, registering a significant 28.5% increase compared to 2023. This was followed by transportation equipment and parts, which represented 14.3% of total imports, up 5.5% YoY. These trends likely reflect rising demand for industrial and mobility infrastructure in line with Vision 2030 goals. 

ASIA DOMINATES TRADE FLOWS

China retained its position as Saudi Arabia’s leading merchandise trading partner in 2024. Exports to China accounted for 15.2% of the kingdom’s total exports, followed by South Korea (9.4%) and Japan (9.3%). Other major export destinations included India, the UAE, the United States, Poland, Bahrain, Egypt, and Taiwan. Collectively, these top 10 countries represented 66.7% of Saudi Arabia’s total exports, with Asian countries dominating the trade flows.

On the import side, China was also the top source, supplying 23.9% of total imports. The United States (8.4%) and the United Arab Emirates (5.5%) followed, along with India, Germany, Japan, Italy, Egypt, Switzerland, and South Korea. Imports from these 10 countries made up 63.7% of the kingdom’s total imports in 2024. 

BOOSTING TIES WITH INDIA

Saudi Arabia and India said they plan to boost ties in a range of areas during a visit of Saudi Minister of lndustry officials to india, Discussions centred on enhancing cooperation across strategic sectors such as petrochemicals, fertilisers, pharmaceuticals, medical devices, heavy machinery, automotive manufacturing, and spare parts.

Earlier this year, the two parties reaffirmed the strength of Saudi-Indian relations and discussed expanding collaboration in petrochemicals and fertilisers, while also exploring new avenues in pharmaceuticals and medical devices, with India expressing strong interest in deepening the countries’ trade relations. 

Also on the agenda were cooperation in machinery and automotive industries, including spare parts, as India also conveyed interest in collaborating on the extraction of magnesium ore in Saudi Arabia for use in refractory materials essential to the steel industry.

“The minister detailed several initiatives to attract industrial investments, including the ‘Factories of the Future’ programme, which promotes advanced manufacturing technologies; low-cost land leasing for industrial projects; financial support from the Saudi Industrial costs with flexible repayment terms; export support through the Saudi Export Development Authority; competitive energy prices and improved industrial infrastructure; and training programmes for local employees and talent attraction initiatives,” according to the Saudi Press Aqency.

Economically speaking, India is Saudi Arabia’s second-largest trading partner, while the kingdom ranks as India’s fifth-largest partner and second-largest supplier of oil. Bilateral trade reached USD 39.9 billion in 2024. Indian investment in the kingdom surged to USD 4 billion in 2023 – a 39% increase from the previous year – demonstrating growing confidence in Saudi Arabia’s investment climate. Major Indian firms have expanded their presence in the kingdom, while the 2023 Saudi-India Investment Forum witnessed the signing of 53 agreements and memoranda of understanding. 

On the other side, leading Saudi companies, including Aramco and SABIC, have invested in India, with Saudi investments totalling USD 10 billion. Energy cooperation remains a cornerstone of the relationship, with both nations committed to oil market stability and energy security. Saudi Arabia continues to serve as a reliable supplier of crude oil to India. 

Additionally, Saudi Arabia has provided over USD 193.8 million in aid to India across sectors such as education, health, food security, energy, and transport.