Business | General
Saudi Arabia's non-oil exports to soar
Saudi Arabia's non-oil exports are set to reach 79 billion Saudi riyals during 2007, compared to 71 billion riyals in 2006, according to a report.
- By Mariam Al Hakeem, Correspondent
- Published: 00:00 February 12, 2007
Riyadh: Saudi Arabia's non-oil exports are set to reach 79 billion Saudi riyals during 2007, compared to 71 billion riyals in 2006, according to a report.
The report, released by the Saudi ministry of finance, has based its forecasts on the major increase in non-oil exports to Iraq and East Asia, as well as the access of Saudi exports to European markets following the Kingdom's accession to the World Trade Organisation (WTO).
The report noted that the value of these exports increased by 10.3 per cent.
Accession to WTO has given the Saudi Arabia's export effort a huge boost in particular by enhancing the competitive advantages enjoyed by the Saudi petrochemical industry and strengthening its position in international markets.
The forecasts of the Ministry of Finance are not much different from those made earlier by the Saudi Exports Development Centre, an affiliate to the Council of the Saudi Chambers of Commerce and Industry. The centre predicted that Saudi non-oil exports would touch 80 billion riyals in 2007.
The centre noted that there are a number of Saudi projects that will begin operating in 2007, which will boost the value of non-oil exports.
Of these projects, the centre's report cited Yansab, the most recent affiliate of the Saudi Basic Industries Corp (Sabic) and its largest petrochemical complex with an annual capacity exceeding 4 million metric tonnes of petrochemical products as well as other projects in the Jubail industrial city in the eastern part of Saudi Arabia.
While petrochemical production from Jubail and Yanbu accounts for about two thirds of Saudi industrial non-crude oil exports, sectors such as metal products, electrical goods, machinery and industrial equipment, construction materials, wood products, textiles and garments as well as food and beverages are growing in importance.
Petrochemical products constitute around two thirds of total Saudi non-oil exports.
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