UAE and China drive Saudi Arabia’s non-oil exports in Q2: GASTAT

UAE and China drive Saudi Arabia’s non-oil exports in Q2: GASTAT
Increasing non-oil exports is a key ambition of Saudi Arabia’s Vision 2030 economic diversification strategy. Shutterstock
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Updated 23 August 2024
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UAE and China drive Saudi Arabia’s non-oil exports in Q2: GASTAT

UAE and China drive Saudi Arabia’s non-oil exports in Q2: GASTAT

RIYADH: Saudi Arabia’s non-oil exports surged by 10.5 percent year-on-year in the second quarter of 2024, led by outgoing shipments to the UAE and China, official data showed.

According to the General Authority for Statistics, of the SR51.16 billion ($13.63 billion) registered by the sector in the three months to the end of June, non-oil goods worth SR15.07 billion were sent to the Kingdom’s Gulf neighbor, with SR7.08 billion going to the Asian powerhouse.

The UAE imported machinery and mechanical appliances worth SR5.83 billion, followed by shipments of transport equipment and chemical products valued at SR3.68 billion, and SR1.48 billion, respectively. 

China also held the first position for the Kingdom’s imports, constituting 23.1 percent of the total incoming shipments valued at SR45.38 billion. 

Saudi Arabia’s Vision 2030 economic diversification strategy has placed increasing non-oil exports at its heart, with the ambition of having the sector contribute to 50 percent of non-oil GDP by the end of the decade.

Other countries to import Saudi goods in the second quarter of 2024 included Bahrain with a value of  SR5.79 billion and India with SR5.48 billion worth of merchandise.

Singapore imported SR3.13 in non-oil goods, while Turkiye and Belgium received SR2.93 billion and SR2.40 billion worth of products, respectively. 

GASTAT noted that national non-oil exports excluding re-exports also witnessed a rise of 1.4 percent in the second quarter of this year, compared to the same period in 2023. 

The authority revealed that chemical and non-allied products led the Kingdom’s non-oil exports during the second quarter, constituting 25.6 percent of the total outgoing shipments. 

Plastic products from Saudi Arabia accounted for 24.3 percent of the total non-oil exports from the Kingdom in the second quarter. 

King Fahad Industrial Sea Port in Jubail sent the majority of the non-oil exports from the Kingdom, with outgoing shipments worth SR11.20 billion. 

Ras Tanura Sea Port sent exports worth SR9.96 billion, followed by King Abdulaziz Sea Port in Dammam at SR7.84 billion and Jeddah Islamic Sea Port at SR8.09 billion. 

King Khalid International Airport in Riyadh handled exports valued at SR5.86 billion, while goods worth SR5.86 billion and SR3.25 billion went through the King Abdulaziz International Airport and King Fahad International Airport. 

Saudi Arabia’s merchandise exports steady in Q2

According to the GASTAT report, Saudi Arabia’s overall merchandise exports witnessed a marginal decline of 0.2 percent in the first quarter of this year to SR294.51 billion, compared to the same period of the previous year. 

The authority attributed this marginal decline to a decrease in oil exports which fell by 3.3 percent, due to Saudi Arabia’s decision to reduce crude output, aligned with an agreement made by OPEC+.

To maintain market stability, the Kingdom had reduced its oil output by 500,000 barrels per day in April 2023, and this cut has now been extended until December 2024.

In the second quarter of 2024, exports to China amounted to 16.2 percent or SR47.58 billion of total outgoing shipments, making the Asian giant the favorite destination for the Kingdom’s outbound goods. 

China was followed by South Korea, with the East Asian nation importing products worth SR26.40 billion from the Kingdom. 

Saudi Arabia sent goods worth SR25.95 to Japan, while products valued at SR23.45 billion and SR19.35 billion were sent to India and the UAE during the second quarter of this year. 

The US received inbound shipments worth SR15.66 billion from Saudi Arabia during the second three months of 2024, followed by Bahrain and Poland at SR8.80 billion and SR5.65 billion, respectively. 

Saudi imports up

According to GASTAT, Saudi Arabia’s imports rose by 3 percent in the second quarter to SR196.14 billion, compared to the same period in 2023, while the merchandise trade balance witnessed a dip of 6 percent during the same period. 

The report further noted that the ratio of non-oil exports, including re-exports, to imports increased in the second quarter, reaching 37.6 percent compared to 35.1 percent in the same period of the previous year. 

“This increase is attributed to the increase in imports, which rose by 3 percent compared to the significant increase in non-oil exports, which rose by 10.5 percent during this period,” said GASTAT. 

According to the authority, the most imported products during the second quarter were machinery and electrical equipment, which constituted 25.7 percent of the total inbound shipments to the Kingdom – a rise of 27.4 percent compared to the same period in previous year. 

In the second quarter, transportation equipment and parts constituted 12.4 percent of the total imports, representing a decrease of 14.9 percent compared to the year-ago period. 

Over the three-month period, Saudi Arabia imported machinery and mechanical appliances worth SR20.45 billion from China, followed by base metal goods at SR4.98 billion and transport equipment at SR6.62 billion. 

Saudi Arabia received inbound shipments worth SR16.52 billion in the second quarter, while imports from the UAE and India amounted to SR11.80 billion and 11.49 billion, respectively. 

In the three months to the end of June, imports worth SR116.81 billion reached the Kingdom through the sea, while products worth SR55.76 billion and SR23.56 billion, reached via the air and the land. 

According to the GASTAT report, King Abdulaziz Sea Port in Dammam was one of the most important ports through which goods crossed into the Kingdom, accounting for 28 percent of total incoming shipments in the second quarter valued at SR54.95 billion. 

The other major ports of entry for imports were Jeddah Islamic Sea Port which handled imports worth SR38.86 billion, followed by Ras Tanura Sea Port and Deba Sea Port, which welcomed inbound shipments valued at SR5.17 billion and SR2.31 billion, respectively. 

King Abdullah Sea Port and Baish Sea Port also handled incoming goods worth SR3.38 billion and SR1.82 billion, respectively. 

Among the airports, King Khalid International Airport in Riyadh welcomed imports worth SR28.36 billion, while King Abdulaziz International Airport and King Fahad International Airport in Dammam received inbound cargoes valued at SR15.48 billion, and SR11.57 billion, respectively.

Saudi trade with China

With China being in the top position for Saudi imports and exports, there is a clear drive in the Kingdom to further develop and consolidate this important relationship.

Earlier this week, airfreight company Saudia Cargo announced a new “Landing in China in 24” campaign, designed to highlight its links to the Asian country.

According to a press release, the campaign is in close collaboration with the Made in Saudi initiative, championed by the Saudi Export Development Authority, which focuses on enhancing the global recognition and quality of Saudi products.

Marwan Niazi, vice president of commercial at Saudia Cargo, said: “Through this campaign, we aim to enhance our shipping capabilities and broaden our export scope to the Chinese markets by optimizing export operations and providing advanced logistic services that align with the growing global market demands and commercial connections.

“We have focused on facilitating the access of Saudi products to the Chinese markets and showcasing our logistical capabilities and operational efficiency.”


Oman’s real estate market surges 28% to $8bn by November 2024

Oman’s real estate market surges 28% to $8bn by November 2024
Updated 5 sec ago
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Oman’s real estate market surges 28% to $8bn by November 2024

Oman’s real estate market surges 28% to $8bn by November 2024
  • Sale contracts in the sector rose 3.1% annually to 1.1 billion rials
  • Number of deals edged up 1.9% to 61,552

RIYADH: Oman’s real estate market maintained its upward trajectory in 2024, with transaction values soaring 28.1 percent year on year to 3.13 billion Omani rials ($8.13 billion) by November, official data showed.  
According to data from the National Center for Statistics and Information, sale contracts in the sector rose 3.1 percent annually to 1.1 billion rials during the period, while the number of deals edged up 1.9 percent to 61,552, Oman News Agency reported. 
The robust performance underscores broader optimism in Oman’s property market, with market intelligence firm Mordor Intelligence forecasting the residential real estate sector to grow at a compound annual rate of 9.19 percent, increasing from $4.38 billion in 2024 to $6.80 billion by 2029. 
The government of Oman has introduced several initiatives to boost the growth of its real estate sector, including relaxing property ownership laws for foreigners and offering tax incentives to real estate developers. 
Oman’s population reached 5.27 million this month, with expatriates accounting for over 43 percent of the total, or 2.28 million people. The significant expatriate presence has been vital in driving demand for residential and commercial properties, particularly in urban centres. 
Oman Vision 2040, the country’s strategic development plan, further underscores the importance of sustainability and innovation in the real estate sector. 
Data from NCSI further revealed that the value of mortgage contracts surged by 44.8 percent year on year in the first 11 months of 2024, reaching 2.1 billion rials. 
However, the number of mortgage contracts declined by 12.2 percent during the January-to-November period, dropping to 18,846 from 21,461 in the same period of the previous year. 
Swap contracts also experienced significant growth, with 1,223 deals valued at 12.4 million rials by the end of November, an 18.1 percent increase from the previous year. 
The total number of issued properties reached 210,483 by the end of November, reflecting a slight 3.4 percent decline compared to the same period in 2023. 
Properties issued to Gulf Cooperation Council citizens saw a 6.8 percent annual rise, totalling 1,325 in the first eleven months of 2024. 


Saudi Arabia issues 36k investment licenses since Vision 2030 launch

Saudi Arabia issues 36k investment licenses since Vision 2030 launch
Updated 35 min 31 sec ago
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Saudi Arabia issues 36k investment licenses since Vision 2030 launch

Saudi Arabia issues 36k investment licenses since Vision 2030 launch

RIYADH: Saudi Arabia has now issued more than 36,000 investment licenses, a five-fold rise compared to the overall active permits before the launch of Vision 2030. 

According to the government-backed Invest Saudi platform, the Kingdom witnessed an 118 percent growth in entrepreneurial license issuance in 2024 compared to the previous year, while permits in the wholesale and retail trade sector increased by 123 percent during the same period. 

The Kingdom launched the Invest Saudi initiative to attract foreign direct investment by offering incentives, streamlining regulatory processes, and facilitating partnerships. 

As part of this, the Kingdom updated its investment law in August to ensure enhanced protections for international investors, including adherence to the rule of law, fair treatment, and property rights, while ensuring robust safeguards for intellectual property and facilitating smooth fund transfers.

“Saudi Arabia is growing steadily in achieving remarkable milestones and attracting investments, exceeding the targets of Saudi Vision 2030 with exceptional results in license issuance and the growth of promising sectors,” said Invest Saudi on X. 

It added that the most licensed sectors since the launch of Vision 2030 are manufacturing, construction, professional and scientific, as well as wholesale and retail trade, and information and communication technology. 

Invest Saudi further said that the Kingdom has surpassed its regional headquarters target outlined in the Vision 2030 program, as more than 500 international firms have established their Middle Eastern base in the country.

The Kingdom’s regional headquarters program provides benefits for international firms, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities for companies, as well as discounts and support services. 

Some of the major companies that have launched their regional headquarters in Saudi Arabia include US-based multinational investment banks Morgan Stanley and Citi Group, as well as BlackRock Inc., Northern Trust, Bechtel, and PepsiCo. 

Invest Saudi is supporting the Kingdom’s National Investment Strategy, which is aiming to increase FDI by more than 20x from SR17 billion ($4.5 billion) in 2019 to SR388 billion in 2030.

It is also targeting increasing investment from 22 percent of GDP in 2019 to 30 percent by the end of the decade.


Saudi education spending kicks off 2025 with 25% surge, pushing POS transactions to $4bn

Saudi education spending kicks off 2025 with 25% surge, pushing POS transactions to $4bn
Updated 08 January 2025
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Saudi education spending kicks off 2025 with 25% surge, pushing POS transactions to $4bn

Saudi education spending kicks off 2025 with 25% surge, pushing POS transactions to $4bn

RIYADH: Saudis spent SR207.3 million ($55.2 million) on education between Dec. 29 and Jan. 4, marking a 25.8 percent increase compared to the previous week.

According to the weekly point-of-sale transactions bulletin, this sector recorded the largest positive change over the seven-day period. It also witnessed growth in terms of the number of transactions, surging by 0.6 percent to reach 131,000.

Overall, Saudi Arabia’s POS spending registered a weekly increase of 9.2 percent, reaching SR15.1 billion, up from SR13.8 billion the week before. Figures from the Kingdom’s central bank showed that the hotel sector saw the second-largest gain at 15.1 percent to SR400.6 million. 

Spending on recreation and culture followed, recording a 14.8 percent uptick to SR328.6 million. 

Transactions on jewelry recorded an increase of 12.8 percent to reach SR355.4 million, and expenditure on construction and building materials surged by 3.9 percent to SR399.9 million.

Similarly, spending on food and beverages also grew 3.9 percent to SR2.16 billion, claiming the biggest share of the total POS value.

Expenditure in restaurants and cafes followed, recording a 10.1 percent increase to SR2.13 billion.

Spending on miscellaneous goods and services accounted for the third biggest POS share, with a 12.3 percent uptick, reaching SR1.8 billion.

Transactions in the leading three categories accounted for approximately 40.8 percent or SR6.1 billion of the week’s total value.

At 2.8 percent, the smallest increase occurred in spending on gas electronics, leading total payments to reach SR176 million. 

Expenditures on transportation increased by 6.5 percent to SR140 million, while spending on public utilities surged by 7.3 percent to reach SR57.5 million.

Geographically, Riyadh dominated POS sales, representing around 33.8 percent of the total, with expenses in the capital reaching SR5.1 billion — a 7 percent decrease from the previous week. 

Jeddah followed with a 13.1 percent surge to SR2.1 billion, and Dammam came in third at SR755 million, up 8.5 percent.

Buraidah experienced the most significant surge in spending, increasing 13.5 percent to SR358.7 million. 

Tabuk and Abha recorded increases of 5.5 percent and 9.4 percent, reaching SR285.3 million and SR170.5 million, respectively.

Makkah and Jeddah saw the largest increases in terms of number of transactions, surging 11 percent and 8.5 percent, respectively, to 9.6 million and 27.4 million transactions.


Emirati billionaire to invest $20bn in US data centers, Trump says

Emirati billionaire to invest $20bn in US data centers, Trump says
Updated 08 January 2025
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Emirati billionaire to invest $20bn in US data centers, Trump says

Emirati billionaire to invest $20bn in US data centers, Trump says
  • Hussain Sajwani promised investment feeds for constructing data centers for developing AI and expanding cryptocurrency
  • Investment by DAMAC Properties in the UAE is intended to highlight Trump’s ability to attract new money for big projects

PALM BEACH, Florida: Emirati billionaire Hussain Sajwani promised a $20 billion investment in the booming US data center industry in the coming years, he and US President-elect Donald Trump announced on Tuesday at Trump’s home in Palm Beach, Florida.
With an election victory largely driven by voters’ economic concerns, Trump has doubled down on bolstering investments in domestic industries and proposed higher tariffs on Chinese goods as the US tries to curb China’s access to the chips needed for advanced data centers.
“We’re planning to invest $20 billion and even more than that, if the opportunity in the market allows us,” said Sajwani, chairman of Dubai developer DAMAC, at Trump’s Mar-a-Lago home.
DAMAC owns the Middle East’s only Trump-branded golf course in Dubai, which opened in 2017, and the billionaire celebrated the New Year with Trump in Florida.
Trump has an affinity for announcements promising economic growth, though such investments do not always pan out. Early in his first term, he announced a $10 billion Foxconn investment in a Wisconsin factory that promised thousands of jobs but was mostly abandoned.
Last month Trump and SoftBank Group CEO Masayoshi Son announced the Japanese tech investor would invest $100 billion in the US over the next four years, focused around AI.
The introduction of OpenAI’s GenAI chatbot ChatGPT in late 2022 kicked off a wave of investment in generative AI technology and the pricey infrastructure required to support it, including power generation and transmission.
Microsoft said last week it would spend about $80 billion this fiscal year to ramp up its AI capacity.
Restrictions on the export of coveted AI chips used in advanced data centers to China have tightened under the Biden administration, and Trump has nominated China hard-liners to key diplomatic and economic roles in his administration.


Oil Updates — crude rises on tighter OPEC supply, US jobs data

Oil Updates — crude rises on tighter OPEC supply, US jobs data
Updated 08 January 2025
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Oil Updates — crude rises on tighter OPEC supply, US jobs data

Oil Updates — crude rises on tighter OPEC supply, US jobs data

SINGAPORE: Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened while data showing an unexpected increase in US job openings pointed to expanding economic activity and consequent growth in oil demand.

Brent crude was up 37 cents, or 0.5 percent, at $77.42 a barrel at 10:30 a.m. Saudi time. US West Texas Intermediate crude climbed 44 cents, or 0.6 percent, to $74.69.

Oil output from the Organization of the Petroleum Exporting Countries fell in December after two months of increases, a Reuters survey showed. Field maintenance in the UAE offset a Nigerian output hike and gains elsewhere in the group.

In Russia, oil output averaged 8.971 million barrels a day in December, below the country’s target, Bloomberg reported citing the energy ministry.

On the economic front, job openings rose in the US in November and the number of layoffs was low, while workers were reluctant to quit, the Job Openings and Labor Turnover Survey showed.

“Robust US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-anticipated drawdown in crude inventories,” said IG market strategist Yeap Jun Rong.

“After trading within a prolonged tight range since October last year, selling pressures may have been exhausted for now, paving the way for a modest recovery,” Yeap said.

US crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.

Going forward, analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-OPEC countries.

“We are holding to our forecast for Brent crude to average $76/bbl in 2025, down from an average of $80/bbl in 2024,” BMI, a division of Fitch Group, said in a client note.

“The bearish view is being led by our fundamental data forecast, which points to an oversupply this year, with supply growth outstripping demand growth by 485,000 barrels per day.”