Saudi Arabian export stats show mixed results in non-oil commerce

Saudi Arabia launched information Thursday on its exports for January 2022. 

The dominion’s whole exports in January amounted to $28.5 billion — a roughly 50% enhance from the identical month in 2021. The rise “originated primarily” from oil exports, which went up 57% on the yr, the Common Authority for Statistics stated in a press launch. 

Non-oil exports had been $6.1 billion in January 2022, constituting a 27.5% year-on-year enhance. Nonetheless, non-oil exports from December 2021 to January 2022 decreased 18.5%, in keeping with the authority. 

China was the most important recipient of Saudi exports in January 2022, receiving 16.1% of the full. India and South Korea, collectively accounted for 21.5% of exports, the authority stated. 

Why it issues: Saudi Arabia is working to diversify its oil-based economic system as a part of the Imaginative and prescient 2030 initiative. The outcomes general have been blended thus far. Saudi Arabia’s gross home product grew 3.2% in 2021 — the most important enhance in seven years. Nonetheless, the dominion has failed to draw the quantity of overseas funding it promised. 

Saudi Arabia is speedily investing in new know-how to assist with the transition away from oil, throwing billions of {dollars} on the metaverse, blockchain and extra. 

Oil stays an integral a part of the Saudi economic system. The Gulf state is at present benefiting from traditionally excessive costs amid the conflict in Ukraine. 

Thursday’s export information additionally signifies Saudi Arabia’s robust relationship with China. Earlier this month, Saudi oil large Aramco finalized a deal to construct an enormous refinery in China. 

The Folks’s Republic was additionally Saudi Arabia’s prime supply for imports in January, in keeping with the Common Authority for Statistics. 

What’s subsequent: Saudi Arabia is reportedly contemplating pricing future oil gross sales to China in yuan versus the US greenback. The transfer would additional cement Saudi-China financial ties, however might anger the US.