Saudi Arabia-US Trade Volume Hits $29.7 Billion in 2023

The volume of trade relations between the Kingdom of Saudi Arabia and the United States reached $29.7 billion (SAR112 billion) in 2023, demonstrating the resilience and diversity of the economic partnership, according to a report issued by the US-Saudi Business Council. The data highlights the continued strength of bilateral ties, encompassing both traditional energy exports and a growing range of non-oil goods.

Context and Background

The trade figures come as Saudi Arabia accelerates its economic diversification under Vision 2030, reducing its historic reliance on oil revenues. The United States remains one of the Kingdom’s most important strategic partners, with trade serving as a cornerstone of the relationship. The 2023 data reflects not only the enduring importance of energy trade but also the expansion into new sectors that align with the Kingdom’s long-term development goals.

Key Details

Saudi Arabia’s exports to the US amounted to $16 billion (SAR60 billion) in 2023, with crude oil contributing $13.7 billion (SAR51.5 billion). The Kingdom remains a major supplier of oil to the US. Non-oil exports reached $2.3 billion (SAR8.5 billion), led by fertilizers at $790 million (SAR3 billion), representing 35% of non-oil exports and recording a 2% year-on-year growth. Organic chemicals followed at $706 million (SAR2.6 billion), while exports of inorganic chemicals saw a dramatic 7,686% increase, reaching $12 million (SAR44 million).

US exports to Saudi Arabia totaled $13.8 billion (SAR52 billion) in 2023, a 20% increase year-on-year. The automotive sector remained the top category, at $2.8 billion (SAR10 billion), up 32% year-on-year. Nuclear reactors, boilers, machinery, and parts accounted for $2.5 billion (SAR9.3 billion), a 38% increase. Aircraft and parts were the third largest category at $1.7 billion (SAR6.3 billion).

Texas led US states in exports to Saudi Arabia at $2.9 billion (SAR11 billion), followed by California at $886 million (SAR3.3 billion) and North Carolina at $846 million (SAR3.2 billion).

Implications and Impact

The trade data underscores the broad and deepening nature of the economic relationship, extending beyond energy to include advanced manufacturing, technology, and agricultural goods. Director of Economic Research at the US-Saudi Business Council Albara’a Alwazir noted that the relationship reflects shared strategic interests and evolving global dynamics. He emphasized the importance of growing trade and foreign direct investment (FDI) as essential to deepening the partnership, with FDI serving as a vital channel for the exchange of capital, technology, and expertise.

Vision 2030 Alignment

The 2023 trade figures align closely with Saudi Arabia’s Vision 2030 objectives, particularly the goal of diversifying the economy beyond oil. The United States is well-positioned to support this transformation by investing in non-oil sectors such as manufacturing, technology, and renewable energy. As Alwazir stated, by fostering innovation, enhancing human capital, and expanding into new industries, both countries can ensure a resilient and prosperous future built on mutual growth and cooperation.

20 Questions

Q1. What was the total volume of Saudi Arabia-US trade in 2023?

A1. The total volume of trade between Saudi Arabia and the United States was valued at $29.7 billion (SAR112 billion) in 2023, according to a report by the US-Saudi Business Council.

Q2. How much did Saudi Arabia export to the US in 2023?

A2. Saudi Arabia’s exports to the US amounted to $16 billion (SAR60 billion) in 2023, with crude oil accounting for the majority at $13.7 billion (SAR51.5 billion).

Q3. What was the value of Saudi non-oil exports to the US in 2023?

A3. Saudi non-oil exports to the US totaled $2.3 billion (SAR8.5 billion) in 2023, led by fertilizers and organic chemicals.

Q4. What was the top non-oil export from Saudi Arabia to the US?

A4. Fertilizers were the top non-oil export from Saudi Arabia to the US in 2023, valued at $790 million (SAR3 billion), representing 35% of non-oil exports.

Q5. How much did US exports to Saudi Arabia increase in 2023?

A5. US exports to Saudi Arabia increased by 20% in 2023, reaching $13.8 billion (SAR52 billion), driven by strong growth in automotive and machinery sectors.

Q6. What was the largest US export category to Saudi Arabia?

A6. The automotive sector was the largest US export category to Saudi Arabia in 2023, valued at $2.8 billion (SAR10 billion), a 32% year-on-year increase.

Q7. Which US state exported the most to Saudi Arabia in 2023?

A7. Texas led US states in exports to Saudi Arabia in 2023, with $2.9 billion (SAR11 billion) worth of goods, maintaining its top position.

Q8. What was the second largest US export category to Saudi Arabia?

A8. Nuclear reactors, boilers, machinery, and parts were the second largest US export category to Saudi Arabia in 2023, worth $2.5 billion (SAR9.3 billion).

Q9. How much did aircraft and parts contribute to US exports to Saudi Arabia?

A9. Aircraft and parts contributed $1.7 billion (SAR6.3 billion) to US exports to Saudi Arabia in 2023, ranking as the third largest category.

Q10. What was the growth rate of US automotive exports to Saudi Arabia?

A10. US automotive exports to Saudi Arabia grew by 32% year-on-year in 2023, reaching $2.8 billion (SAR10 billion).

Q11. Which US state saw the third highest exports to Saudi Arabia?

A11. North Carolina ranked third among US states exporting to Saudi Arabia, with total exports of $846 million (SAR3.2 billion), up 17% year-on-year.

Q12. What was the value of California’s exports to Saudi Arabia in 2023?

A12. California’s exports to Saudi Arabia reached $886 million (SAR3.3 billion) in 2023, reflecting a 12% year-on-year growth.

Q13. How much did organic chemicals contribute to Saudi non-oil exports?

A13. Organic chemicals accounted for $706 million (SAR2.6 billion) in Saudi non-oil exports to the US in 2023, representing 31% of total non-oil exports.

Q14. What was the growth rate of inorganic chemicals exports from Saudi Arabia?

A14. Exports of inorganic chemicals from Saudi Arabia to the US saw a significant increase of 7,686% in 2023, reaching $12 million (SAR44 million).

Q15. Who is the Director of Economic Research at the US-Saudi Business Council?

A15. The Director of Economic Research at the US-Saudi Business Council is Albara’a Alwazir, who commented on the importance of trade and FDI in deepening the partnership.

Q16. What role does FDI play in the US-Saudi partnership?

A16. FDI serves as a vital channel for the exchange of capital, technology, and expertise between the US and Saudi Arabia, supporting economic diversification beyond oil.

Q17. How do the 2023 trade figures support Saudi Arabia’s Vision 2030?

A17. The trade figures support Vision 2030 by highlighting growth in non-oil sectors and positioning the US as a key partner in diversifying Saudi Arabia’s economy.

Q18. What non-oil sectors are critical to achieving Vision 2030?

A18. Non-oil sectors critical to achieving Vision 2030 include manufacturing, technology, and renewable energy, where US investment can play a transformative role.

Q19. What was the total value of Saudi Arabia’s crude oil exports to the US?

A19. Saudi Arabia’s crude oil exports to the US were valued at $13.7 billion (SAR51.5 billion) in 2023, underscoring the Kingdom’s role as a reliable energy supplier.

Q20. How does the US-Saudi Business Council view the future of trade?

A20. The US-Saudi Business Council views the trade relationship as a cornerstone of economic engagement, with growing trade and FDI essential for a resilient and prosperous future.

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