Saudi Arabia has seen a significant increase in export financing in the first half of 2024 as the country intensifies efforts to reduce its non-oil trade deficit.

Export Financing and Insurance Surge

The Saudi Export-Import Bank reported providing SAR 4.3 billion (Dh15.7 billion) in financing and insurance during this period, representing a 128 per cent increase from the previous year, according to the Saudi Press Agency.

The bank's export financing disbursements reached $1.8 billion (Dh6.6 billion), up 142 per cent year-on-year, while export credit insurance soared to $2.4 billion (Dh8.8 billion), marking a 118 per cent rise compared to the same period last year.

Trade Data Highlights Growing Deficit

Recent trade data from the General Authority for Statistics revealed an 8.2 per cent year-on-year rise in non-oil exports, including re-exports, in May 2024. Despite this growth, the ratio of non-oil exports (including re-exports) to imports climbed to 41 per cent in May 2024 from 39 per cent in May 2023, indicating a widening non-oil trade deficit.

Key Export Categories and Markets

Chemical products were the top non-oil export category, accounting for 24 per cent of the total, with a 6 per cent year-on-year increase. Plastics and rubber products followed, making up 22 per cent of non-oil exports. China remained the largest destination for Saudi non-oil exports, accounting for 15 per cent of the total, with South Korea and India trailing at 10 per cent and 8 per cent, respectively.

Leading Import Sources

China was also the leading source of imports into Saudi Arabia, representing 25 per cent of total imports in May 2024, followed by the US at 9 per cent and the UAE at 6.5 per cent.

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