(MENAFN) Official data reveals that Saudi Arabia experienced a notable uptick in its non-oil exports during January, marking a 0.8 percent increase compared to the corresponding month in 2023. The Kingdom's General Authority for Statistics (GASTAT) disclosed in its latest report that the cumulative value of non-oil exports, inclusive of re-exports, amounted to SR24 billion (USD6.40 billion). Concurrently, the proportion of non-oil trade in the overall economy climbed to 35.8 percent in January, up from 35.1 percent recorded in the same period the prior year.
However, despite the positive trajectory witnessed in the non-oil sector, Saudi Arabia encountered a decline in its overall merchandise exports during January, registering a 10.3 percent decrease to SR95 billion compared to the corresponding period in the previous year. Notably, this decline was primarily attributed to a reduction in crude trade, which experienced a year-on-year slide of 1.3 percent in January. The report further elucidated that the share of oil in total trade also dwindled from 77.6 percent in January 2023 to 74.8 percent in January 2024.
This downturn in oil exports can be attributed to Saudi Arabia's strategic decision to curtail crude output in alignment with an agreement forged by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+. In April 2023, Saudi Arabia initiated a reduction in oil production by 500,000 barrels per day, a measure subsequently extended until the conclusion of December 2024.
In summary, while Saudi Arabia's non-oil exports witnessed a modest increase, the overall decline in merchandise exports, driven by reduced crude trade, underscores the intricate balance the Kingdom navigates between meeting global energy demands and advancing its economic diversification agenda.
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