TRADE

EAST IS NOW THE GO-TO DESTINATION FOR SAUDI TRADE AND INVESTMENT

Saudi Arabia’s push to enhance trade and investment ties with emerging markets is exemplified by its strengthening relationship with India. As Saudi’s second-largest trading partner, India plays a pivotal role in the kingdom’s strategy to diversify its economy beyond oil. This aligns with the broader goals of Saudi Vision 2030, which focuses on developing non-oil sectors, expanding global market reach, and boosting trade relations with key emerging economies like India.

The historic ties between the two nations were solidified during the 2019 visit of Crown Prince Mohammed bin Salman to India, commemorating a new era of bilateral co-operation through the establishment of the Saudi-Indian Strategic Partnership Council. The council oversees areas from trade and investment to technology and culture, ensuring that economic relations are robust and far-reaching.

The Saudi Export Development Authority (Saudi Exports) is building on  that mission to play a vital part in promoting Saudi products and services in India. The authority’s participation in international exhibitions, such as the Anuga India 2024 exhibition in Mumbai under the "Made in Saudi" banner, showcases the kingdom’s commitment to expand its export footprint. 

Around 25 leading Saudi companies from the food products sector participated in the event, underscoring the importance of food production in diversifying Saudi exports. Saudi Arabia’s growing global presence in the food industry is evident in its export of high-quality dates to over 119 countries and its production of white Vannamei shrimp, making it one of the world’s top exporters.

EMPOWERING SAUDI EXPORTERS

Saudi Exports is also focused on equipping exporters with the tools they need to succeed in India. Workshops such as "Empowering Exports to India and Bangladesh" are designed to help Saudi companies navigate challenges in customs, logistics, and financials, with solutions being developed in collaboration with relevant authorities. This eort demonstrates Saudi Arabia’s commitment to improving trade exchange and developing new export opportunities in emerging markets.

In 2023, the kingdom’s non-oil exports to India reached SAR 23 billion, highlighting the competitive strength of Saudi goods in Indian markets. Key exports include chemical products, plastics, and precious stones. Over the past five years, non-oil exports to India have totalled approximately SAR 100 billion, further reflecting the kingdom’s strategic focus on boosting trade and investment in one of the world’s largest and fastest-growing economies.

These efforts have paid o as non-oil exports, including re-exports, recorded a 10.5% increase in the second quarter of 2024 compared to the same period last year, according to the General Authority for Statistics. Moreover, national non-oil exports, excluding re-exports, increased by 1.4% and the value of re-exported goods increased by 39.1% during the same period.

Merchandise exports fell 0.2% during the period due to a 3.3% decline in oil exports. Indeed, the percentage of oil exports out of total exports decreased from 77.4% in the second quarter of 2023, versus 75% at the second quarter of 2024.

PORTS ON THE RISE

Saudi ports have significantly improved their international ranking in annual container handling. According to the recently released Lloyd's List report, of the world's top 100 ports, those located in the kingdom have climbed from 16th to 15th position. 

Jeddah Islamic Port has made substantial strides, leaping from 41st to 32nd place. Meanwhile, King Abdullah Port also demonstrated significant progress, climbing from 71st to 70th place. The King Abdulaziz Port in Dammam experienced a more considerable jump, moving from 90th to 82nd place.

"The substantial growth rates and increased container handling volumes in the Saudi ports underscore the kingdom's position as a global logistics powerhouse,” said Saudi Ports Authority (Mawani) president Omar Hariri. “The ports sector plays a pivotal role in supporting the national economy, enhancing export and trade activities, and facilitating the smooth movement of supply chains."

To build on this momentum, Mawani recently concluded a series of development and commercial support contracts for container terminals, worth nearly SAR 17 billion. These investments aim to increase the capacity of container terminals, by over 70% at Jeddah Islamic Port and by more than 120% at King Abdulaziz Port in Dammam.

In 2023, the kingdom added 31 transcontinental shipping services, signed agreements with prominent national and international companies for six new logistics zones, and inked four contracts for maritime services, with total investments exceeding SAR 1 billion. These initiatives are aligned with the National Strategy for Transport and Logistics Services, reinforcing the kingdom's position as a global logistics centre.