Saudi Arabia’s non-oil exports rise 4% to $6.6bn in October

Saudi Arabia’s non-oil exports grew more than 4 per cent year-on-year (YoY) in October 2022 to reach SAR24.9bn, data released by the Saudi General Authority for Statistics on Thursday showed.

Total exports during the month increased by 14 per cent YoY to SAR120.7bn. This was due to higher oil exports which rose by 16.6 per cent, or SAR13.7bn. Non-oil exports mainly comprised chemical and allied industries, accounting for 41 per cent of the total non-oil merchandise exports.

However, compared to September 2022, total exports fell 3.6 per cent or SAR4.5bn. Saudi Arabia’s exports growth has been falling month on month from a peak rise of nearly 99 per cent in April 2022.

Meanwhile, total imports increased by 39 per cent in October to SAR63.9bn compared to SAR46.6bn in the same period last year, giving the country a positive trade balance of SAR57bn. Total imports have been rising since July.

According to recent data from the Joint Organizations Data Initiative, the kingdom’s crude exports grew 52,000 barrels per day (b/d) to 7.77mn b/d in October, a 30-month high.

Saudi Arabia has been enjoying the benefits of elevated oil prices since the Ukraine crisis drove commodity prices higher. However, prices are expected to soften in 2023 on weaker demand and ample supply.

Citi Research lowered its oil price forecast for 2023 from $88 per barrel to $80/bbl, saying a ‘soft floor’ could be found at $70/bbl.