Non-oil exports from Saudi Arabia to the US increase despite pandemic

06 May, 2021
Non-oil exports from Saudi Arabia to the US increase despite pandemic
Non-oil exports from Saudi Arabia to the US increased by 3.5 % last year, regardless of the disruption caused by Covid-19, in line with the US-Saudi Business Council.

Total trade between your US and Saudi Arabia stood at 75.6 billion Saudi riyals ($20.2bn) last year, with the majority being US imports into the kingdom. The US may be the second-biggest source of merchandise imported into Saudi Arabia.

However, goods worth 33.7bn riyals were exported from Saudi Arabia to the US, 84 % which was crude oil exports. Non-oil exports grew to 5.3 billion riyals this past year, with aluminium, organic and natural chemicals and fertilisers among the key categories of exports.

Precious or semi-valuable metals and textile exports to the US also grew this past year.

"This expansion reflects the larger monetary transformation underway in Saudi Arabia to grow the non-oil economy through investments found in manufacturing, downstream petrochemicals, and different emerging sectors through the general public Investment Fund and programmes like the National Industrial Expansion & Logistics Program," the USSBC said.

Saudi Arabia is attempting to diversify its economy from oil under the Vision 2030 programme announced on 2016. In a tv set interview previous month to mark the fifth year because the strategy was initially outlined, Saudi Crown Prince Mohammed Bin Salman explained the kingdom's non-oil earnings had increased a lot more than 200 per cent.

"Oil is even so the main source of income for the state," Prince Mohammed said. "My intention is normally to be sure that the united states is secure, secure and has a much better future to look forward to."

The crown prince reiterated plans for state oil company Saudi Aramco to spend Dh5 trillion in the private sector by 2030. He also said a further 1 per cent stake in Aramco could be sold to a major foreign energy firm within two years.

“Saudi Arabia’s non-oil exports decreased by 12 % globally in 2020 yet its non-oil exports to the US increased by 3.5 per cent regardless of the pandemic," the USSBC's director of financial research, Albara’a Alwazir, explained.

"This reflects a resilient increase in demand from US importers of Saudi goods that exceed petrochemical derivatives and metals," he said.
Source: www.thenationalnews.com
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