In comparison to last month, Saudi Arabia’s non-oil exports surged up to a staggering $6.76 billion, which is 12.7 percent more than the amount recorded last year in the month of October. This continues the trend of the kingdom’s export sector revealing a success in venturing out into a variety of different sectors and not solely relying on oil exports. The strong performance in regards to non-oil goods goes hand and hand with the country’s plan to strengthen its economic reach, as per the statistics provided by GASTAT. Combine this with the fact that manufacturing, chemicals, and electrical machinery were all on the higher side when in comparison to exports and you have a positive growth driver.
The Vision 2030 sets out to increase economic diversification in Saudi Arabia, this would entail that the country becomes less reliant on purely oil exports but expands into technology, manufacturing, and even tourism. The growth in Non-Oil exports certainly prevails these goals and showcases the strength in Saudi Arabia’s international standing. The Kingdom’s infrastructure and industrial sectors require additional goods and services to develop which is why the import level has increased moderately. This balanced growth indicates a stable development pattern, in the long-term, for the economy as per analysts.
This also supports the country’s goals and initiatives, which Saudi Arabia is pursuing, as experts explain, to dominate the global trade network picture. Due to the active diversification of the economy and industrial base, the country is becoming a new non-oil economy in the parts of the Middle East. The policies of the government such as trade deals and expanding the industrial base are likely to boost non-oil exports in the near term which will further translate into higher absolute levels of these exports in the medium term. Improving marketing and product quality as well as logistics are also reasons behind this positive trend.
