The economic relationship between Saudi Arabia and China is experiencing notable growth, with China being the world's second-largest economy and a major player in global consumption and manufacturing.
Strengthening economic ties
This relationship is underscored by significant trade activities, as evidenced by the General Authority for Statistics' international trade report for the first quarter of 2024, which indicates that 15 percent of Saudi exports are directed to China. This figure highlights the deep economic and trade collaboration between the two nations.
From 2019 to 2023, Saudi Arabia's non-oil exports to China have surpassed SR176 billion ($47 billion), with the chemicals and polymers sector being the most significant contributor, followed by the metals sector. This trade dynamic demonstrates the strategic importance of the Chinese market for Saudi exports and the mutual benefits derived from this economic partnership.
The Saudi Export Development Authority has played a crucial role in enhancing the accessibility of Saudi exports to the Chinese market. It has actively participated in specialized international exhibitions to promote Saudi products and services, facilitating business deals to expand their export reach. A notable upcoming event is the Transport and Logistics Exhibition 2024 in China, where sixteen leading Saudi companies will present their logistical and technical services. This exhibition underscores the critical role of transportation and logistics in the service export sector.
In 2023, Saudi Arabia's service exports saw a remarkable 40 percent increase compared to the previous year, reaching SR182 billion ($48.5 billion). This growth was primarily driven by the recovery of the travel sector, which accounted for 74 percent of the total services exports, valued at SR135 billion ($36 billion). The transportation sector followed with exports amounting to SR24.2 billion ($6.5 billion), and communication services exports stood at SR6.3 billion ($1.7 billion).
The Saudi Export Development Authority is also focused on enhancing exporters' readiness by providing essential information and conducting specialized studies and reports to explore export opportunities. This support helps exporters identify and capitalize on suitable export opportunities. The authority also emphasizes developing exporters' capabilities through various workshops and training courses.
Addressing export challenges
Addressing the challenges faced by exporters, such as customs and non-customs restrictions, financial hurdles, and logistical issues, is another key focus for Saudi Exports. The authority collaborates with stakeholders to find practical solutions that enhance the ability of companies to successfully access the Chinese market. These efforts are part of a broader initiative to achieve sustainable growth in the Kingdom's non-oil exports, ensuring that Saudi Arabia remains a competitive player in the global market.
The strengthening economic ties between Saudi Arabia and China are a testament to their strategic partnership. The Saudi Export Development Authority's proactive efforts in promoting and facilitating Saudi exports to China are crucial in sustaining this growth trajectory.
Through participation in international exhibitions, providing exporters with necessary resources, and addressing various challenges, Saudi Arabia is well-positioned to continue expanding its economic footprint in the Chinese market, thereby contributing to the overall growth of its non-oil export sector.
