Saudi Arabia’s non-oil exports to China have reached an impressive $47 billion over the past five years, highlighting the deepening economic ties between the two nations. China now accounts for 15% of Saudi exports, reflecting its crucial role as a major global economy and a key partner in the Kingdom’s diversification efforts away from oil.
According to the General Authority for Statistics (GASTAT), the international trade report for the first quarter of 2024 underscores the robust trade relationship between Saudi Arabia and China. From 2019 to 2023, Saudi non-oil exports to China totaled SR176 billion, with chemicals, polymers, and metals leading the list.
The transport and logistics sector has become a significant part of Saudi Arabia’s services exports, contributing to the overall growth of non-oil exports. In 2023, services exports to China saw a notable 40% increase from the previous year, reaching SR182 billion. This growth was largely driven by the recovery of the travel sector, which surged by 43%, accounting for 74% of total services exports, valued at SR135 billion. The transport sector followed with exports worth SR24.2 billion, and communications services exports at SR6.3 billion.
Saudi Arabia’s efforts to strengthen exports to China are part of a broader strategy to enhance bilateral relations. A key moment in this initiative was the 2016 meeting between King Salman and Chinese President Xi Jinping in Riyadh, resulting in agreements to boost cooperation on the Belt and Road Initiative (BRI) and the 21st Century Maritime Silk Road.
Further strengthening this partnership, Crown Prince and Prime Minister Mohammed bin Salman visited China in 2019. High-level discussions during this visit focused on deepening strategic cooperation across various sectors, reflecting the strong and multifaceted relationship between Saudi Arabia and China.
As Saudi Arabia and China continue to collaborate and expand their economic partnership, the future looks promising for Saudi non-oil exports, laying a solid foundation for ongoing growth and mutual prosperity.
Photo source: Google
By: Montel Kamau
Serrari Financial Analyst
1st July, 2024
