Saudi Arabia’s non-oil sector continues to perform strongly fortifying the kingdom’s initiatives to move away from a reliance on fossil fuels.

The kingdom’s non-oil exports have registered a 26.1 per cent growth in November surging to hit SR26 billion ($7 billion) from SR20.6 billion last year, according to the November 2021 International Trade Report issued by the General Authority for Statistics (Gastat).

The kingdom's non-oil exports increased by SR2.1 billion or 9 per cent compared to October 2021, it stated.

According to Gastat, the overall merchandise exports increased by 82.5 per cent in November compared to the year before, when international trade was impacted by Covid-related lockdowns and travel bans in numerous countries.

The value of exports amounted to SR107.3 billion in November, up from SR58.8 billion over 2020. This increase originated mainly from oil exports, which rose by SR 43.1 billion or 112.8 per cent in the same period.

Exports of chemicals or allied industries expanded by 70.6 per cent from a year ago and made up 34 per cent of non-oil merchandise exports. Sales of plastics and rubber also increased, rising by a yearly rate of 38.4 per cent.

The ratio of non-oil exports to imports jumped to 52.6 per cent in November, up from 42.3 per cent in the previous month, as imports increased by only 1.4 per cent compared to the higher growth of non-oil sales, Gastat pointed out.

China was the Kingdom’s main trading partner, accounting for 17.2 per cent of total exports and 20.6 per cent of imports. India and Japan were other major recipients of Saudi goods and services, buying 11.6 per cent and 9.6 per cent, respectively, of exports. South Korea, the US, the UAE and Egypt were also among the top 10 exporting destinations.

In addition, the US and the UAE provided Saudi Arabia with 11.4 per cent and 6 per cent, respectively, of its imports.

Looking at the major customs ports for imports, Gastat said that 25.9 per cent of total purchases came through the Jeddah Islamic Sea Port in November. It was followed by King Abdulaziz Port, King Khalid International Airport and Bat'ha.

The share of oil exports in total exports increased from 65.0 per cent in November 2020 to 75.8 per cent in November 2021. Compared to October, the total merchandise exports increased by SR1.1 billion or 1 per cent.

The report further revealed that the kingdom's merchandise imports increased by 1.4 per cent in November. The value of imports amounted to SR49.4 billion in November 2021 compared to SR48.7 billion the previous year.

PLASTICS TOTAL $9.3BN

With investments totalling SR35 billion ($9.3 billion) and with over 1300  factories involved, Saudi Arabia’s plastic material and manufacturing has come front and center in the kingdom, the Saudi Deputy Minister of Industry and Mineral Resources said.

Investments in the plastic industry are estimated to be around 2.6 per cent of total investments in the industrial sector.

The industry has become the forefront of the total industrial sector, due its many uses in other promising fields such as food, automobiles, marine and medical supplies, Osama Al-Zamil said at the inauguration of the International Polymer Forum and the Plastics Manufacturers Exhibition 2022 held in Riyadh, last month.

The minister said investing in plastic materials contributed to raising productivity and reaching the desired intensity of the manufacturing process, thanks to the recycling process, which limits environment pollution.

The exhibition attracted experts and companies specialising in this field, the Saudi Press Agency (SPA) reported.

In his speech, the deputy minister underlined the importance of the forum in enhancing Saudi Arabia’s industrial status at the local and global levels, encouraging the industrial thought in the sectors specialised in the manufacture of plastics and rubber materials and the associated manufacturing industries, as well as improving the competitiveness of the national products.

 The International Plastics Manufacturers Exhibition aimed to raise awareness on the importance of plastics in the economy, due to its many uses in promising industries such as food, automobiles, marine industries and medical supplies.

MANUFACTURING AT $4BN

Meanwhile, the volume of investment in Saudi manufacturing products has exceeded SR15 billion ($4 billion) as of the end of September 2021, SPA reported citing the minister of industry and mineral sources.

Bandar Al Khorayef stated that manufacturing facilities in Saudi Arabia have reached 230.

With a 27 per cent localisation rate, the Kingdom’s manufacturing facilities have provided nearly 10,000 jobs in various technical, mechanical and supervisory fields, the report of the National Industrial Information Centre showed.

Saudi manufacturing industries include a wide range of products, including jewellery, medicine devices, contact lenses, bicycles, toys and others.

The volume of exports for the Saudi manufacturing industry exceeded SR436 million, the report showed, with gold bars and garment industries topping the list of exports.