Saudi Non-Oil Trade Surplus with GCC Hits SAR 6.8B in Q2 2024

Saudi Arabia’s non-oil trade balance with Gulf Cooperation Council (GCC) countries recorded a significant surplus of SAR 6.776 billion in the second quarter of 2024, marking an approximate 600% annual growth compared to the same period in 2023, according to preliminary data from the General Authority for Statistics (GASTAT). The surplus, released via the Saudi Press Agency, underscores the Kingdom’s expanding economic integration with its Gulf partners and the success of Vision 2030 diversification efforts.

Context and Background

The GCC, comprising Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Oman, and Qatar, represents a vital economic bloc for the Kingdom. In recent years, Saudi Arabia has intensified efforts to deepen trade ties within the region as part of its Vision 2030 agenda, which aims to reduce dependence on oil revenues and boost non-oil sectors. The second quarter of 2023 saw a surplus of SAR 1.033 billion, making the current figure a remarkable leap. This growth is attributed to increased non-oil commodity exports, including national exports and re-exports, which totaled SAR 24.392 billion, up 31% from SAR 18.627 billion in Q2 2023. Meanwhile, total commodity imports from GCC countries amounted to SAR 17.616 billion, resulting in the substantial surplus.

Key Details

Breaking down the non-oil exports among GCC countries, the United Arab Emirates (UAE) emerged as the top destination, with exports valued at SAR 15.070 billion, accounting for approximately 61.8% of the total. Bahrain followed with SAR 5.792 billion (23.7%), Kuwait with SAR 1.823 billion (7.5%), Oman with SAR 965 million (4%), and Qatar with SAR 741 million (3%). This distribution highlights the UAE’s pivotal role as a trading partner, while also indicating growing opportunities across all GCC markets. The data, based on GASTAT’s international trade report, reflects the Kingdom’s strengthened commercial relationships and the effectiveness of its economic policies.

Implications and Impact

The surge in non-oil trade surplus with GCC countries carries significant implications for Saudi Arabia’s economic landscape and regional cooperation. It demonstrates the Kingdom’s successful diversification away from oil, a core Vision 2030 objective, and enhances its position as a regional trade hub. For GCC partners, increased Saudi exports mean greater access to a wide range of goods, fostering interdependence and stability. On the international stage, this growth signals Saudi Arabia’s resilience and attractiveness as a trade partner, potentially drawing further foreign investment. Moreover, it supports the broader goal of Gulf economic integration, aligning with initiatives like the GCC Customs Union.

Vision 2030 Alignment

This achievement directly aligns with Vision 2030’s strategic goals of expanding non-oil exports, enhancing economic diversification, and strengthening regional partnerships. By boosting trade with GCC neighbors, Saudi Arabia not only reduces its reliance on hydrocarbon revenues but also reinforces its leadership in the Gulf and beyond. As the Kingdom continues to implement reforms and invest in logistics, manufacturing, and technology, such trade surpluses are expected to grow, contributing to a sustainable and prosperous future. The success in Q2 2024 serves as a testament to the Kingdom’s unwavering commitment to economic transformation and global engagement.

20 Questions

Q1. What was the value of Saudi Arabia’s non-oil trade surplus with GCC countries in Q2 2024?

A1. The surplus reached SAR 6.776 billion, marking a significant increase from the previous year.

Q2. How much did the surplus grow compared to Q2 2023?

A2. It grew by approximately 600%, up from SAR 1.033 billion in Q2 2023.

Q3. What was the total value of non-oil commodity exports in Q2 2024?

A3. Total non-oil commodity exports, including re-exports, amounted to SAR 24.392 billion.

Q4. Which GCC country received the highest value of Saudi non-oil exports?

A4. The United Arab Emirates received SAR 15.070 billion, accounting for 61.8% of total exports.

Q5. What was the total value of commodity imports from GCC countries?

A5. Total commodity imports were SAR 17.616 billion, resulting in the trade surplus.

Q6. How did non-oil exports change annually?

A6. They increased by 31%, from SAR 18.627 billion in Q2 2023 to SAR 24.392 billion in Q2 2024.

Q7. Which country ranked second in receiving Saudi non-oil exports?

A7. Bahrain ranked second with SAR 5.792 billion, representing 23.7% of the total.

Q8. What share of exports went to Kuwait?

A8. Kuwait received SAR 1.823 billion, making up 7.5% of the total.

Q9. How much did Oman receive in Saudi non-oil exports?

A9. Oman received SAR 965 million, accounting for 4% of the total.

Q10. What was Qatar’s share of Saudi non-oil exports?

A10. Qatar received SAR 741 million, representing 3% of the total.

Q11. Which authority released the trade data?

A11. The General Authority for Statistics (GASTAT) released the preliminary data via the Saudi Press Agency.

Q12. When was the data for Q2 2024 released?

A12. The data was released on September 2, 2024, according to the Saudi Press Agency.

Q13. What is the significance of this surplus for Saudi Arabia’s economy?

A13. It reflects successful economic diversification and strengthening trade ties within the GCC, aligning with Vision 2030.

Q14. How does this surplus support Vision 2030?

A14. It advances non-oil export growth and regional integration, key goals of Vision 2030.

Q15. What are non-oil commodity exports?

A15. They include national exports and re-exports of goods not related to oil, such as manufactured products and chemicals.

Q16. Which GCC country is the largest market for Saudi non-oil exports?

A16. The UAE is the largest market, receiving over 60% of Saudi non-oil exports to the GCC.

Q17. What impact does this trade surplus have on regional cooperation?

A17. It enhances economic interdependence and stability among GCC countries, fostering closer ties.

Q18. How does this compare to Saudi Arabia’s global trade?

A18. It highlights the GCC’s importance as a trading bloc, though global trade remains larger in scale.

Q19. What sectors contribute most to non-oil exports?

A19. Key sectors include petrochemicals, plastics, metals, and manufactured goods, though specific breakdowns are not provided.

Q20. What future trends are expected for Saudi-GCC trade?

A20. Continued growth is anticipated as Saudi Arabia pursues further diversification and GCC integration under Vision 2030.

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