Rise in Non-Oil Exports Strengthens Saudi Arabia's Economic Diversification Efforts

Asharq Al-Awsat

28-03-2025

Saudi Arabia's non-oil exports continued their upward trajectory, reflecting the Kingdom's ongoing efforts to diversify its economy. According to data from the General Authority for Statistics (GASTAT), non-oil exports, including re-exports, grew by 10.7% in January, while excluding re-exports, they increased by 13.1%.
The International Trade Statistics Bulletin for January, published by GASTAT, reported a 2.4% growth in Saudi Arabia's total merchandise exports compared to the same period last year. Meanwhile, oil exports saw a slight decline of 0.4% in January. The share of oil exports in total exports also dropped from 74.8% in January 2024 to 72.7% in January 2025.
This increase in non-oil exports is a positive indicator of the success of Saudi Arabia's economic policies in diversifying income sources beyond oil, according to Dr. Abdullah Al-Jassar, a member of the Saudi Association for Energy Economics. Speaking to Asharq Al-Awsat, Al-Jassar emphasized that this growth did not happen by chance but was the result of a comprehensive strategy to develop the manufacturing sector, which has become a key driver of the non-oil economy. Notably, chemical industry products accounted for 23.7% of total non-oil exports.
He also highlighted that major improvements in logistics infrastructure, supported by the National Industrial Development and Logistics Program (NIDLP), have enhanced export efficiency and strengthened the connection between Saudi-made products and global markets—solidifying the Kingdom's position as a key trade hub.
China: A Key Trade Partner
According to the latest data, China remains Saudi Arabia's top trading partner, accounting for 15.2% of the Kingdom's total exports, while imports from China made up 26.4% of total imports. This underscores Saudi Arabia's strong presence in Asian trade, Al-Jassar noted.
Imports and Trade Surplus
Despite an 8.3% increase in imports, the trade surplus declined by 11.9%. However, Al-Jassar explained that this decline should be viewed within the broader context of Saudi Arabia's structural economic transformation. The rise in imports is largely driven by an increase in production inputs that support industrial expansion rather than consumer goods.
Economic policy expert Ahmed Al-Shihri told Asharq Al-Awsat that the 10.7% growth in non-oil exports reflects the success of investments in industrial sectors, particularly the chemical industry, which accounted for 23.7% of non-oil exports. This growth indicates an improvement in production capacity and international competitiveness.
'The increase in non-oil exports is driven by enhancements in industrial infrastructure, government support for the private sector, and rising global demand for Saudi non-oil products. This shift reduces the Kingdom's dependence on oil as the primary revenue source, making the economy more resilient to fluctuations in oil prices. Furthermore, the rise in the ratio of non-oil exports to imports—from 35.7% to 36.5%—suggests a healthier trade structure that supports long-term economic sustainability,' Al-Shihri added.
Vision 2030
Saudi Vision 2030 continues to drive non-oil sector growth through various initiatives, including enhancing local content, boosting exports, attracting foreign investments, and expanding economic and logistics zones. Al-Jassar believes that the continuation of these strategies will establish Saudi Arabia as an emerging export powerhouse in the coming years, further strengthening its global economic standing.