Saudi Arabia exported non-oil goods worth 2.23 billion riyals ($594 million) in May, representing a rise of 19.25 per cent compared to the previous month, official data showed, reports Arab News.
Strengthening the non-oil private sector and exporting those goods to countries like China is crucial for Saudi Arabia, as the kingdom is steadily pursuing its economic diversification journey by reducing its dependence on oil.
The General Authority for Statistics (GASTAT) report revealed that China was the top destination for Saudi Arabia’s overall exports, with the kingdom sending outgoing shipments amounting to 15.91bn riyals.
In May, oil was the main export from Saudi Arabia to South Korea, with shipments totaling 13.68bn riyals.
According to the latest data, Saudi Arabia exported plastics and rubber products worth 876.9m riyals to China, followed by chemical products at 851.8m riyals.
In May, the kingdom also exported mineral products totaling 313.4m riyals to China, while outgoing shipments of base minerals amounted to 103.7m riyals.
China was also Saudi Arabia’s most important import partner in May, with incoming shipments from the Asian nation amounting to 17.55bn riyals, representing a rise of 22pc compared to April.
According to GASTAT, China was followed by the US and the UAE, with the kingdom importing goods worth 6.56bn riyals and 4.54bn riyals, respectively, from these nations.
The authority revealed that Saudi Arabia imported mechanical equipment and electrical parts worth 8.23bn riyals in May from China.
The kingdom also imported transport equipment and base metals worth 2.68bn riyals and 1.61bn riyals, respectively, in May.
Chinese imports to the kingdom also included antiques and artworks worth 961.8m riyals, followed by plastic products at 806.7m riyals and textile goods at 792.4m riyals.
In May, Saudi Arabia also imported chemical products worth 479.5m riyals, while the kingdom also received incoming shipments of leather, fur, and handbags from China amounting to 118.4m riyals.
Saudi Arabia and China have shared strong bilateral relations for several years, with the kingdom being the largest trading partner of China in the Middle East since 2001, and bilateral trade between the nations reaching $107.23bn in 2023.
Saudi and China are strategic partners in various sectors, including energy and finance, as well as the Belt and Road Initiative.
According to the Chinese government, one out of every six barrels of crude oil imported by China comes from Saudi Arabia, while every Saudi riyal out of every 7 riyals of the kingdom’s export revenue comes from the Asian nation.
In May, Saudi Finance Minister Mohammed Al Jadaan spoke highly of the economic and trade co-operation between the two countries, saying that the two countries have maintained positive cooperative communication under the framework of the Economic and Financial Subcommittee of the High-level Chinese-Saudi Joint Committee.
Al Jadaan also noted that bilateral trade between the two countries surged 31-fold since 1990, adding that outbound investment from China into Saudi Arabia has also been growing rapidly in recent years, making the Asian nation an important partner for the Arab country to realize its vision for economic transformation.
As the diplomatic and economic relationship between Saudi Arabia and China prospers, the kingdom’s Central Bank, also known as SAMA, and the People’s Bank of China, in November 2023, signed a local currency swap agreement worth 26bn riyals ($6.93bn).
After the agreement, SAMA said that the deal would help strengthen financial cooperation between Saudi Arabia and China, promote the use of local currencies, and strengthen trade and investments between the countries.
The first half of this year witnessed several major developments that could enhance the bilateral, economic, and trade relationships between Saudi Arabia and China.
Earlier this month, Saudi Arabia’s sovereign wealth fund signed six deals amounting to $50bn with top Chinese financial institutions to enhance bilateral capital flows.
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