Trade with the KSA: a Wealth of Opportunities
Saudi Arabia, the largest economy in the Middle East, is rapidly transforming its business landscape. With ambitious plans to diversify its economy beyond oil, the Kingdom is opening up unprecedented international trade and investment opportunities.
At the heart of Saudi Arabia’s economic strategy is Vision 2030, a comprehensive plan to reduce its dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. This initiative has led to significant reforms, making the Kingdom more accessible to foreign businesses than ever before.
Saudi Arabia Trade
As such, the KSA was able to achieve exports at a value of 94.5 billion SAR and imports at a value of 75.2 billion SAR. The country was able to diversify its trade portfolio to include other products than crude oil. Those include metal products at a value of 69.6 billion SAR, chemical products at a value of 6.5 billion SAR, plastics and rubber at a value of 6.5 billion SAR, electric appliances and equipment at a value of 3.3 billion SAR, and cars, boats, and airplanes at a value of 2.2 billion SAR.
The Gross Domestic Product (GDP) in Saudi Arabia was worth 1067.58 billion US dollars in 2023. According to the Saudi Arabian Ministry of Economy and Planning, the top five countries involved in exports from the KSA are China (13.2 billion SAR), South Korea (9.7 billion SAR), Japan (9.3 billion SAR), India (8.2 billion SAR), UAE (7.1 billion SAR). The top five countries involved in importing to the KSA are China (19.1 billion SAR), USA (5.4 billion SAR), Germany (3.8 billion SAR), UAE (3.6 billion SAR), and India (3.6 billion SAR).
Saudi Arabia and Asian Relations
Saudi Arabian trade relations with Asian Countries have increased in recent years, driven by economic diversification efforts and strategic partnerships. It is interesting to note that 41% of the KSA’s trade is with Asian economies.
These relationships are characterized by increasing trade in oil, petrochemicals, and investment in infrastructure projects. The Kingdom’s Vision 2030 initiative further emphasizes its commitment to expanding economic collaborations, promoting technology transfer, and enhancing regional connectivity. This shift bolsters Saudi Arabia’s economic resilience and positions it as a key player in the Asian economic landscape.
Saudi Arabia’s exports to China amounted to US$42.86 Billion in 2023. In July 2024, the top exports of China to Saudi Arabia were Telephones ($336M), Cars ($202M), Light Fixtures ($141M), Other Furniture ($122M), and Other toys ($117M). In July 2024 the top imports of China from Saudi Arabia were Crude Petroleum ($4.98B), Ethylene Polymers ($206M), Acyclic Alcohols ($171M), Copper Ore ($93.6M), and Cyclic Hydrocarbons ($52.2M).
In bilateral trade, Saudi Arabia and India have a strong and strategic relationship. There has been a strong increase in the number of Indian companies operating in the KSA between 2019 and 2023 climbing from 400 to 2900. Indian companies have taken root in the critical sectors of the KSA like tourism, housing, renewable energy, health, entertainment, etc.
When it comes to relations with Japan, approximately 110 Japanese businesses are now operational in the Kingdom of Saudi Arabia. This number is anticipated to increase due to the Saudi-Japan 2030 business summit held in 2024, which resulted in the signature of over 30 MOUs across various industries, including manufacturing and energy.
The KSA and South Korea have long-standing strategic ties. A visit by South Korean President Yoon Suk Yeol to the Kingdom in 2023 saw the signing of over 26 agreements worth USD 30 billion in economy, development, culture, investment, and other fields.
Saudi Arabia Business Opportunities
Saudi Arabia presents a wealth of opportunities for international businesses ready to enter a dynamic and rapidly evolving market. By understanding the local business environment, focusing on key growth sectors, and navigating the cultural landscape, foreign companies can position themselves for success in this promising economy.
As Saudi Arabia continues its journey of economic transformation, now is the time for forward-thinking businesses to explore the possibilities in this emerging powerhouse of the Middle East.
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