Latest news with #economicdiversification
Arab News
a day ago
- Business
- Arab News
UAE, China, India among top destinations for Saudi Arabia's non-oil goods: GASTAT
RIYADH: The UAE emerged as the leading destination for Saudi Arabia's non-oil exports during the first quarter of 2025, with shipments valued at SR21.32 billion ($5.68 billion), marking a 33.91 percent increase compared to the same period last year, according to the latest data from the General Authority for Statistics. Machinery and mechanical appliances were the most exported items to the UAE, amounting to SR10.19 billion. This was followed by transport equipment worth SR5.16 billion and chemical products totaling SR1.11 billion. Plastic goods were also significant, with exports to the UAE reaching SR942 million, while precious stones and base metals recorded SR860.8 million and SR848.4 million, respectively. The increase in non-oil exports aligns with the objectives of the Kingdom's Vision 2030, which seeks to diversify the economy and reduce dependency on oil revenues. Saudi Minister of Economy and Planning Faisal Alibrahim recently noted that non-oil activities now contribute 53.2 percent to the Kingdom's gross domestic product. GASTAT also reported a 9.27 percent rise in Saudi Arabia's non-oil exports to the UAE compared to the previous quarter, further emphasizing the Kingdom's economic diversification momentum. China ranked second among Saudi Arabia's non-oil export destinations in the first quarter, receiving goods valued at SR6.51 billion — an annual increase of 17.93 percent. Major exports to the Asian country included plastic products worth SR2.58 billion, chemical products totaling SR2.32 billion, and minerals valued at SR533.4 million. India was another prominent trade partner, with non-oil exports reaching SR5.75 billion in the first quarter, up 14.08 percent from the same period in 2024. Other key export destinations included Turkiye, which received goods worth SR2.96 billion; Egypt at SR2.56 billion; and the US at SR2.48 billion. Singapore imported SR2.28 billion worth of goods from Saudi Arabia, while Bahrain received SR2.21 billion, Belgium SR2.11 billion, and Kuwait SR1.97 billion. Overall, Saudi Arabia's non-oil exports rose by 13.4 percent year on year in the first quarter, totaling SR80.72 billion. Key ports played a vital role in this trade activity. King Fahad Industrial Sea Port in Jubail handled the highest volume of outbound non-oil goods, valued at SR9.93 billion. Jeddah Islamic Sea Port followed closely with SR9.76 billion, while Jubail Sea Port and King Abdulaziz Sea Port in Dammam facilitated exports worth SR7.17 billion and SR6.69 billion, respectively. On land, Al-Batha Port processed SR5.53 billion in exports. Al-Hadithah and Al-Wadiah ports recorded export values of SR2.10 billion and SR1.43 billion, respectively. Among airports, King Khalid International Airport in Riyadh led with SR8.52 billion worth of non-oil goods exported in the first quarter, an increase of 12.84 percent compared to the previous year. King Abdulaziz International Airport followed with SR6.16 billion, while King Fahad International Airport in Dammam and Prince Mohammad bin Abdulaziz International Airport in Madinah recorded SR741.8 million and SR4.2 million, respectively. Merchandise exports Despite growth in the non-oil sector, overall merchandise exports declined by 3.2 percent year on year in the first quarter, falling to SR285.78 billion. GASTAT attributed this drop to an 8.4 percent decline in oil exports, which caused the share of oil in total exports to decrease from 75.9 percent in the first quarter of 2024 to 71.8 percent in the same period this year. Asia remained the largest market for Saudi exports, accounting for SR213.14 billion. Europe followed at SR34.51 billion, with Africa and the Americas receiving SR23.19 billion and SR13.80 billion, respectively. China was the top destination for overall merchandise exports, receiving SR44.91 billion worth of goods — an increase of 3.26 percent compared to the first quarter of 2024. India received SR28.04 billion in goods, followed by Japan with SR26.48 billion, South Korea at SR25.03 billion, and the UAE at SR24.85 billion. Imports in Q1 Saudi Arabia's imports also grew during the first quarter, rising by 7.3 percent year on year to SR222.73 billion. Machinery, mechanical and electrical equipment led imports, totaling SR57.40 billion, followed by transport parts at SR32.56 billion and base metals at SR21.30 billion. Chemical imports stood at SR19.60 billion, while minerals accounted for SR12.12 billion. Goods imported from Asia were valued at SR128.50 billion, while imports from Europe and the Americas reached SR52.94 billion and SR27.01 billion, respectively. African nations contributed SR12.53 billion in imports, and goods from Oceania were valued at SR1.73 billion. China remained Saudi Arabia's largest source of imports, sending goods worth SR59.33 billion. These included mechanical appliances and electrical equipment valued at SR23.93 billion, transport parts worth SR9.50 billion, base metals at SR6.43 billion, and even works of art and antiques amounting to SR3.19 billion. The US followed with SR17.58 billion in exports to the Kingdom, while India's exports totaled SR12.27 billion. Sea routes were the dominant entry channels for imports, accounting for SR113.11 billion. Air and land ports handled SR61.63 billion and SR25.99 billion, respectively. King Abdulaziz Sea Port in Dammam was the leading sea entry point with SR59.97 billion in imports. Jeddah Islamic Sea Port and Ras Tanura port followed with SR47.78 billion and SR8.73 billion. Over land, Al-Batha Port and Riyadh Dry Port managed goods worth SR10.78 billion and SR8.29 billion, respectively. By air, King Khalid International Airport in Riyadh received imports valued at SR29.96 billion in the first quarter. King Abdulaziz International Airport and King Fahad International Airport handled SR18.60 billion and SR12.39 billion, respectively. Reflecting continued expansion of the non-oil economy, Saudi Arabia recorded a Purchasing Managers' Index of 55.6 in April, according to S&P Global and Riyad Bank. This score surpassed those of the UAE at 54 and Kuwait at 54.2, indicating robust growth in non-oil business activity. A PMI reading above 50 signals economic expansion, while a figure below 50 suggests contraction.
Zawya
a day ago
- Business
- Zawya
World Bank support focused on enhancing Oman's investment climate
MUSCAT: The World Bank's contribution to advancing Oman's ambitious Vision 2040—a long-term strategy for economic diversification, sustainability, and global integration—has been spotlighted in a recent article on the official blogging platform of the World Bank Group. Titled 'Oman Vision 2040: A Blueprint for Sustainable Growth and Global Integration,' the article is co-authored by Dr Khamis bin Saif Al Jabri, Chairman of the Oman Vision 2040 Implementation Follow-up Unit, and Ousmane Dione, Vice President for the Middle East and North Africa at the World Bank. According to the article, a decades-long partnership between Oman and the World Bank has made the institution a key ally in supporting the country's shift from an oil-reliant economy to a knowledge-based, globally competitive nation. The Bank's support aligns with strategic national goals outlined in Vision 2040, spanning multiple sectors. A central pillar of this collaboration is improving the investment climate to foster private sector-led growth. To that end, the World Bank has worked closely with Omani authorities to introduce global best practices in business environment reform, adapted to local needs. These efforts are producing results: foreign direct investment is on the rise, and the regulatory framework has improved. A notable milestone is the 2020 Foreign Capital Investment Law, which eliminated minimum capital requirements and opened numerous sectors to full foreign ownership. In parallel, the World Bank Group's private sector arm—the International Finance Corporation (IFC)—has expanded its engagement in Oman by promoting sustainable finance and supporting private sector development. The Multilateral Investment Guarantee Agency (MIGA), another World Bank Group institution, played a key role in mobilizing $1.2 billion in commercial financing for infrastructure projects in the Duqm Special Economic Zone—a lynchpin in Oman's logistics and industrial diversification strategy. The partnership also extends to human capital development, a core objective of Vision 2040. The World Bank has supported education reform, helping Oman align its curriculum with future labor market demands. Investments in STEM education, vocational training, and research are aimed at boosting Oman's global education rankings, with goals to reach the top 20 by 2030 and top 10 by 2040. Sustainable development is another area of impactful collaboration. In the fisheries sector, the World Bank has helped craft a national strategy to modernize the industry from traditional fishing to a high-tech, export-driven model. This transformation is already delivering results, with the sector growing by 7.5 per cent in the first three quarters of 2024 and targeting 10 per cent annual growth, significantly contributing to Oman's non-oil GDP. The World Bank is also supporting Oman's efforts to build an entrepreneurial ecosystem that empowers youth. Initiatives such as innovation hubs, startup incubators, and public-private partnerships are helping unlock the potential of the nation's young population—64 per cent of whom are under 30. Targeted support for tech startups and workforce reforms are seen as vital steps toward leveraging this demographic advantage. Looking ahead, the road to 2040 presents both opportunities and challenges. The authors emphasize that realizing Vision 2040 will require sustained commitment, adaptability, and continued engagement with international partners. Oman's journey can serve as a model for other nations seeking to navigate uncertainty while pursuing economic diversification, sustainability, and global integration, the authors stressed. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Bloomberg
2 days ago
- Business
- Bloomberg
Saudi Arabia Seeks New IPOs to Attract Foreign Investors
Saudi Arabia aims to increase potential public offerings as it seeks to diversify its economy away from oil and develop its financial sector. 'We are doing almost 30% from last year,' said Mohammed Al-Rumaih, chief executive officer of the Saudi stock exchange in an interview with Bloomberg Television, referring to the increase in numbers.
Al Arabiya
3 days ago
- Business
- Al Arabiya
Saudi Arabia, a leading powerhouse in renewable energy transforming the Middle East
The investment in renewable energy is not merely a choice for the Middle East – it is an existential necessity. In a region where economic structures have long been dominated by fossil fuel exports, the global transition to cleaner energy sources presents both a challenge and an change, population growth, and economic diversification imperatives have converged to make renewable energy development a critical priority for the region. For the Middle East to remain economically resilient and geopolitically relevant in a decarbonizing world, it must embrace renewable energy not as a supplement, but as a core component of its future. For all the latest headlines follow our Google News channel online or via the app. This transition is particularly urgent because the Middle East faces some of the world's most extreme climate threats. Rising temperatures, dwindling water supplies, and desertification are already reshaping daily life and threatening agricultural output across the region. Many countries are experiencing record-breaking heatwaves, which strain power grids and increase reliance on air conditioning, thereby intensifying energy demand. In this context, renewable energy offers a path toward stabilizing national economies, reducing environmental risk, and meeting domestic energy needs through sustainable means. Furthermore, it positions the region to become a global player not just in oil markets but in the clean energy economy of the future. Among all the Middle Eastern nations, Saudi Arabia has emerged as the most proactive and ambitious country in embracing the clean energy transition. Often known for its immense oil reserves and status as a global oil exporter, Saudi Arabia is now becoming a symbol of change and innovation in the renewable energy space. The Kingdom has undertaken a dramatic reorientation of its energy policy, not out of necessity alone but as a strategic effort to lead the region in a new direction. With immense financial resources, political will, and geographic advantages – such as vast deserts ideal for solar power generation – Saudi Arabia is positioning itself as a model for renewable energy development not only in the Arab world but globally. Its commitment has gone far beyond symbolic gestures; it has taken concrete, large-scale steps that are already reshaping the Kingdom's energy landscape. Saudi Arabia's clean energy investments span across solar, wind, and green hydrogen, making its approach both comprehensive and forward-looking. In the solar sector, the Kingdom has set an ambitious goal of installing 50 gigawatts of solar capacity by 2030. This vision is being realized through massive projects such as the Sudair Solar PV Project, one of the largest solar photovoltaic facilities in the world, with a capacity of 1.5 gigawatts. Another prominent example is the Sakaka Solar Power Plant, a 300-megawatt facility that marked the kingdom's first foray into utility-scale solar power. It currently provides electricity to over 70,000 homes, proving that renewable energy is not a future aspiration but a present-day reality in the Saudi energy mix. Furthermore, the upcoming al-Shuaibah Solar Project – set to produce 2 gigawatts – reaffirms the Kingdom's serious commitment to solar expansion and capacity building. Wind energy has increasingly emerged as a vital component of the global renewable energy mix, particularly for countries seeking to diversify their energy sources, reduce emissions, and enhance energy security. Its scalability, low environmental impact, and declining costs have positioned it as a strategic asset in national clean energy portfolios, especially in regions with favorable wind conditions. In this context, Saudi Arabia has identified wind energy as a key pillar of its renewable transition. Capitalizing on the high wind speeds in its northern and northwestern regions, the Kingdom has undertaken ambitious wind power projects that are reshaping its energy landscape. The Dumat al-Jandal Wind Farm, for example, has become the largest in the Middle East, with a generation capacity of 400 megawatts – enough to power approximately 70,000 homes. More than just an energy facility, it has served as a catalyst for regional economic growth, spurring job creation, advancing infrastructure, and developing local technical expertise. Unlike theoretical ambitions, these projects are already integrated into the national grid, reducing dependence on fossil fuels and enhancing domestic energy resilience. This pragmatic and large-scale deployment of wind energy places Saudi Arabia at the forefront of clean power development in the region. Green hydrogen has also rapidly gained attention as the linchpin of the next phase in global decarbonization, offering a zero-emission energy carrier that can decouple growth from carbon output across multiple sectors. As industries and governments seek scalable alternatives to fossil fuels, green hydrogen – produced using renewable electricity and electrolysis – has become a promising avenue for clean energy storage, long-distance transport, and hard-to-abate sectors like steel and cement. Recognizing this transformative potential, Saudi Arabia has made green hydrogen a centerpiece of its future energy strategy as well. The Kingdom has announced plans to produce 4 million tonnes of green hydrogen annually, using its extensive solar and wind resources to power electrolysis plants. This initiative positions Saudi Arabia not only as a consumer but also as a major global supplier of clean hydrogen. The clean hydrogen will be used domestically and exported, reinforcing Saudi Arabia's shift from a hydrocarbon-based economy to a diversified, sustainable energy powerhouse. Major projects are already underway, including collaborations with international energy firms to develop one of the largest hydrogen production facilities in the world at NEOM – a futuristic megacity on the Red Sea. These developments are not abstract visions; they are backed by multibillion-dollar investments and clear timelines, reflecting the kingdom's intent to anchor its post-oil economy in green energy leadership and play a decisive role in shaping the future global hydrogen economy. All of these unprecedented achievements are rooted in the vision and strategic foresight of Crown Prince Mohammed bin Salman. His leadership has been central to reimagining Saudi Arabia's future, and his launch of Vision 2030 marked a turning point in the kingdom's approach to governance, economics, and environmental responsibility. Vision 2030 is not merely an economic reform plan – it is a comprehensive blueprint for transformation that places sustainability and innovation at the heart of national development. Under the Crown Prince's direction, initiatives such as the Saudi Green Initiative have been introduced, which aim to increase the share of renewables in the energy mix to 50 percent by 2030. These policies reflect a holistic approach to energy, climate, and environmental stewardship. The Crown Prince's ability to secure both domestic and international partnerships, along with his efforts to attract private sector investment, has turned these ambitions into tangible results. In conclusion, Saudi Arabia has decisively emerged as a leading force in renewable energy development, not only within the Middle East but on the global stage. It has moved beyond rhetoric and implemented one of the most aggressive and well-funded clean energy programs in the world, encompassing solar, wind, and green hydrogen. Through its far-reaching investments and innovative vision, the Kingdom is setting new benchmarks for what a hydrocarbon-rich country can achieve in the era of energy transition. Its journey provides a roadmap for other Middle Eastern nations seeking to navigate the dual challenges of climate vulnerability and economic diversification. With the continued support of strong leadership and sustained investment, Saudi Arabia is indeed poised to redefine its legacy – not just as a global oil superpower, but as a pioneer and top player in the clean energy revolution of the 21st century.
Arab News
4 days ago
- Business
- Arab News
S&P affirms Abu Dhabi, RAK ratings on strong fiscal base
JEDDAH:Global credit rating agency S&P has reaffirmed Abu Dhabi's 'AA' rating and Ras Al-Khaimah's 'A' rating, citing robust fiscal management, infrastructure-led growth, and continued progress in economic diversification as key drivers of their sovereign credit standings. Abu Dhabi's rating was confirmed with a stable outlook, underpinned by what S&P describes as one of the strongest government balance sheets globally and ongoing initiatives to strengthen the emirate's non-oil economy. Ras Al-Khaimah's rating was similarly upheld, thanks to strong tourism-driven momentum and sustained investments in infrastructure. The UAE's overall economic performance further supports these ratings. According to S&P, the nation's gross domestic product rose by 3.8 percent year on year in the first nine months of 2024. The non-oil sector was the main contributor, expanding by 4.5 percent to 987 billion dirhams ($268.74 billion). As the capital, Abu Dhabi plays a central role in the UAE's macroeconomic profile. 'Abu Dhabi has a very wealthy economy, but growth rates remain volatile because about 50 percent of economic output comes from the hydrocarbon sector,' the report noted. Looking ahead, the agency forecasts the UAE's economy will remain resilient, projecting 2.5 percent growth in 2025. This outlook is driven by vigorous non-oil activity and increased oil production, with regional geopolitical tensions expected to have limited domestic impact due to the UAE's internal stability. S&P expects oil production to rise modestly over the medium term, supported by the relaxation of OPEC+ quotas. Output is anticipated to increase from 2.95 million barrels per day in 2023–24 to 3.04 million bpd in 2025, potentially reaching 3.50 million bpd by 2028. With a total capacity of up to 4.85 million bpd and new gas projects underway, the UAE holds significant upside potential for growth and fiscal surplus enhancement. The report emphasized Abu Dhabi's structural reforms aimed at improving the business climate and attracting foreign investment. These include the introduction of a law permitting 100 percent foreign ownership, liberalized personal and family laws, and the Golden Visa Program, which offers long-term residency to investors, entrepreneurs, and skilled professionals. Despite regional uncertainties, Abu Dhabi's economic outlook remains secure. A strategic asset in this stability is the Abu Dhabi Crude Oil Pipeline, which allows around half of the emirate's crude exports to bypass the Strait of Hormuz via the Fujairah Oil Terminal. Additionally, substantial fiscal reserves provide a critical buffer against potential financial shocks. S&P highlighted the emirate's fiscal and external strength, noting that while hydrocarbons account for 70 to 75 percent of government revenues, Abu Dhabi maintains one of the largest net asset positions among rated sovereigns, estimated to reach 327 percent of GDP by 2025. 'At the same time, the UAE government has pledged to make the country carbon neutral by 2050 and plans to invest heavily in alternative energy sources that are both renewable and clean,' the report added. Smaller emirates like Dubai, Ras Al-Khaimah, and Sharjah are also expected to benefit from federal financial backing, particularly from Abu Dhabi, if necessary. Their combined direct debt is projected to reach about 30 percent of Abu Dhabi's GDP by 2025. Even when accounting for government-related entity debt, Abu Dhabi's balance sheet is expected to remain in a net asset position above 100 percent of GDP. Due to limited external data specific to Abu Dhabi, S&P used UAE-wide figures to assess the emirate's external standing. The report pointed to significant external assets, primarily managed by the Abu Dhabi Investment Authority, as a core strength. The UAE's external liquid assets are forecast to exceed its external debt by roughly 215 percent of current account payments over 2025–28. However, gross external financing needs will remain relatively high, at 132 percent. The Central Bank of the UAE maintains a base interest rate of 4.4 percent, in line with the US Federal Reserve, due to the dirham's peg to the US dollar. Inflation rose slightly to 0.5 percent in 2024 and is expected to remain modest at 1.3 percent through 2028. Turning to Ras Al-Khaimah, S&P anticipates that economic growth will ease slightly to an average of 3.3 percent in 2025-26, down from an estimated 3.5 percent in 2024, due to less favorable external conditions. 'We expect RAK's fiscal performance to remain strong despite higher infrastructure spending in the next two to three years,' the report stated. RAK's growth is projected to accelerate to an average of 4.3 percent in 2027-28, driven by key sectors such as tourism, real estate, manufacturing, and mining. Conservative fiscal practices are expected to continue, with budget surpluses averaging 2 percent of GDP from 2025 through 2028. These surpluses are supported by stable revenues and limited debt, allowing RAK to maintain a net government asset position averaging 21 percent of GDP over the same period. Federal backing remains a financial safety net, easing any potential funding challenges. RAK posted a fiscal surplus of 2.9 billion dirhams in 2024 — 6.5 percent of its GDP — primarily driven by strong dividends from state-owned firms like RAK Ports and Marjan, solid municipal revenues, and reduced capital spending. Land sales from Marjan are expected to continue supporting fiscal performance, with additional revenues from corporate taxes and hospitality anticipated from 2027 onward. However, fiscal surpluses may moderate as infrastructure spending rises. S&P concluded that both Abu Dhabi and Ras Al-Khaimah are well-positioned to weather global economic uncertainties. Abu Dhabi's deep fiscal reserves and mature capital markets complement RAK's targeted tourism investments and expanding non-oil economy—together reinforcing the UAE's broader strategy of economic diversification.
