Continued Growth of Non-Oil Exports in Saudi Arabia: Q1 2025 Report
The recent report released by the General Authority for Statistics has revealed encouraging trends in Saudi Arabia’s trade statistics for the first quarter of 2025 and March 2025. Notably, there has been a significant upward shift in non-oil exports, reflecting a robust diversification of the Kingdom’s economy.
One key highlight from the report is the improvement in the ratio of non-oil exports to imports. In Q1 2025, this ratio reached 36.2%, up from 34.3% in the same quarter of the previous year, 2024. Furthermore, in March 2025, this ratio further increased to 36.5%, compared to 33% in March 2024. This indicates that non-oil sectors are increasingly contributing to the overall trade landscape, which is crucial for the economic diversification strategy of the Kingdom.
Conversely, the data indicated a decline in the proportion of oil exports relative to the total exports. In Q1 2025, oil exports constituted 71.8% of the total, compared to 75.9% during the same period last year. Likewise, in March 2025, the proportion dipped to 71.2%, down from 76.5% in March 2024. This shift underscores Saudi Arabia’s ongoing efforts to reduce reliance on oil exports, thereby highlighting the rising importance of non-oil industries.
Among the non-oil exports, "chemical industry products" led the pack, constituting 23.8% of total non-oil exports in Q1 2025, and 25.7% in March. This suggests that the chemical sector continues to thrive, showcasing the potential for growth in this industry.
On the imports side, "electrical machinery and equipment and their parts" emerged as the largest import category, making up 25.8% of total imports in Q1 and 26.1% in March. This indicates a strong demand for technological advancements and machinery within the Kingdom.
The report also noted that non-oil exports—including re-exports—experienced a remarkable growth of 13.4% in Q1 2025 compared to the analogous quarter in 2024. Similarly, in March 2025, there was a 10.7% increase in non-oil exports compared to March 2024. This substantial growth signifies an expanding role of non-oil sectors in Saudi Arabia’s external trade, aligning with the nation’s long-term economic plans.
In contrast, the overall commodity exports recorded a decline of 3.2% in Q1 2025 compared to the same quarter in 2024, with a more pronounced drop of 9.8% noted in March. This disparity highlights a nuanced trade environment where non-oil sectors are thriving while total exports face challenges.
On the import front, there was a notable increase of 7.3% in Q1 2025, alongside a marginal rise of 0.1% in March compared to the previous year. These figures suggest that despite the fluctuation in exports, the demand for imported goods remains steady, reflecting consumer needs and industrial requirements.
The trade surplus also experienced a decline, dropping by 28% in Q1 and a staggering 34.2% in March, reflecting the changing dynamics between exports and imports.
China retained its position as the Kingdom’s primary trading partner, accounting for 15.7% of total exports and 26.6% of total imports in Q1 2025. These figures slightly adjusted to 15.5% for exports and 25.3% for imports in March, indicating sustained trade relations between Saudi Arabia and China.
The data utilized in this comprehensive report stem from administrative records of the Zakat, Tax, and Customs Authority concerning non-oil statistics, while oil data was sourced from the Ministry of Energy. Products are categorized based on the Harmonized System for the description and coding of goods, ensuring consistent and reliable data classification.
In summary, the trade report for Q1 2025 underscores a pivotal moment in Saudi Arabia’s economic trajectory, reflecting both the resilience of non-oil sectors and the strategic shifts necessary for economic diversification. The Kingdom’s ongoing efforts to broaden its economic base appear to be yielding positive results, although challenges in total export levels pose areas for consideration moving forward.
