Saudi Arabia's non-oil exports have surged impressively, showing a remarkable increase of 14.3% in February 2025 compared to the same month in the previous year. This growth has been significantly supported by a robust recovery in manufacturing activity and an uptick in re-exports, which have become a vital part of the Kingdom's economic strategy.
According to data released by the Saudi General Authority for Statistics, while national non-oil exports (excluding re-exports) saw a modest increase of 0.7%, the value of merchandise re-exports skyrocketed by an astonishing 45.9%. This trend highlights Saudi Arabia's evolving role as a regional logistics hub, further diversifying its economy away from oil dependency.
Despite the positive figures in non-oil exports, total exports for February 2025 experienced a decline of 2.6%, primarily due to a significant drop in oil exports, which fell by 7.9%. This decline in oil exports has shifted its share of total exports from 76.3% in February 2024 to 72.1% in February 2025, illustrating the growing importance of non-oil sectors in the Kingdom's economy.
These statistics reflect the success of Saudi Arabia's Vision 2030 initiative, which aims to broaden the economic base and enhance various non-oil sectors. The increase in non-oil exports, particularly through re-exports, signals a positive shift in the Kingdom's economic landscape.
In terms of imports, February 2025 saw a decrease of 5.6%, contributing to an overall trade surplus that rose by 4.0% compared to the previous year. The trade balance surplus for the month stood at 30.5 billion riyals, with total international trade reaching 156.9 billion riyals. Saudi exports amounted to 93.7 billion riyals, while imports totaled 63.2 billion riyals.
The report also noted that the proportion of non-oil exports (including re-exports) to imports increased to 41.3% in February 2025, up from 34.1% during the same month last year. This increase underscores the effectiveness of the Kingdom's efforts to boost non-oil exports while simultaneously reducing reliance on imports.
Among the various sectors contributing to non-oil exports, chemical products led the way, accounting for 20.3% of total non-oil exports. However, this figure represents a decline of 3.6% from February 2024. Following closely were plastics and rubber products, which constituted 20% of non-oil exports but also saw a decrease of 1.7% compared to the previous year.
On the import side, machinery, appliances, and electrical equipment topped the list, making up 23.5% of total imports, although this category experienced a slight decrease of 0.7% from February 2024. Transportation equipment and parts accounted for 15.4% of total imports, witnessing a significant increase of 24.3% compared to the same month last year.
The strong performance of non-oil exports, particularly in the context of Saudi Arabia's broader economic diversification efforts, reflects a strategic pivot towards enhancing the Kingdom's manufacturing capabilities and logistics infrastructure. As the nation continues to implement its Vision 2030 goals, the emphasis on non-oil sectors is expected to grow, potentially leading to more sustainable economic growth in the future.
Overall, the data from February 2025 paints a picture of a Kingdom that is not only adapting to the changing global economic landscape but also actively working to reduce its dependence on oil revenues. As Saudi Arabia continues to push forward with its economic reforms, the implications of these changes could resonate across various sectors, enhancing economic stability and resilience.
