The Kingdom’s economic exchange with global markets has established a good public standing thanks to shipping oil and gas to buyers across the world. Additionally, steady economic growth has allowed Saudi Arabia to become a major importer. In the meantime, vital transport links, a large consumer market, and fairly high salaries are some of the consequences of the local trading system. All in all, the Kingdom is an attractive place for investments. And Four Winds Saudi Arabia professionals are here to explain how your business can benefit from the Saudi Arabia trading system. Read on and good luck in all your endeavors!
Let’s see if your enterprise is in a country that can benefit from the Saudi Arabia trading system
The international exchange has a crucial role in The Kingdom’s economy. Trade has reached the GDP to more than 68 percent, in line with the World Bank’s most recent data. Therefore, numbers are very favorable, even when you compare them to other economies of similar sizes, such as:
- Turkey: 50%;
- Indonesia: 39%; and
- Argentina: 25%.
The Kingdom’s abundance in oil has played a crucial part in this
The Kingdom’s oil reserves hold more than 15% of the global total. These figures have allowed Saudi Arabia to become the second-largest oil producer in the world. Now the Kingdom is only behind the US. This resource has enabled the logistics companies in Jeddah to rank in the top-20 list of global exporters. Saudi Arabia now claims 17th place out of 50 economies according to the World Trade Organisation. Consider if this is something your commercial activity can benefit from.
Additionally, the government is closely monitoring all of these essential aspects that make for a healthy economy. Which is something your enterprise can greatly take advantage of if you enter the Kingdom’s trading system? Finally, as one of the leading moving companies in Jeddah believes that the approaching months and years are promising and likely to bring much-desired developments in the area of the Kingdom’s global connections.
Branch out and benefit from the Saudi Arabia trading system
However, you can benefit from the Saudi Arabia exchange market not only from oil exports. The oil industry forms just a small portion of a progressively diverse spectrum of hydrocarbons. Trades that promote the nation’s growth as a commerce nation include:
- Primarily natural gas production,
- Secondly, refining activity and petrochemicals production,
- And other minor industries that are starting to play a larger part in the energy sector mix.
The very attractive nature of the Kingdom’s oil reserves which are incredibly easy to extract has helped Saudi Aramco to build a solid reputation as a stable production giant. The Ministry of Energy has said that oilfields in The Kingdom have annual decline rates of only 2%. Finally, Saudi Aramco boasts the fact that, unlike other refineries in the region, its fields do not call for advanced oil recovery methods.
Non-oil trading market
One of the most notable expansions in the country’s economy recently is one of the non-oil exports. By 2015, the percentage of non-oil exports from Saudi Arabia has increased to more than 24%. And by 2020 its shares have risen to more than 30 percent. However, you should note that this abrupt growth has happened because of declining oil prices. None the less, whatever happens to prices in the oil industry in the future, the government works towards branching out its profits. As a result, all its non-oil exports are also going to form an important part of its economy over the coming years.
Exports & imports in the Kingdom
Some of the major sectors in which The Kingdom has a mature and profitable level of export activity are:
- Base metals,
- Precooked foods and beverages,
- Live animals and animal products,
- Machinery and electrical equipment,
- Textiles, as well as
- Articles of stone, plaster, cement, asbestos, mica ceramics and glassware.
Secondly, when it comes to imports, the Kingdom has a healthy demand for refined hardware. As a result, the largest group of goods include machinery and mechanical appliances. As well as electrical equipment. Finally, individualized transport, construction machinery, and new mass transit solutions. All of which have reached high levels of demand.
Saudi Arabia markets
Different markets that Saudi Arabia exchanges goods with have helped the nation integrate with the global economy.
- First of all, in terms of exports, the largest destinations for products leaving the Kingdom are – China, EU, Japan, the US, followed by India, South Korea, and neighboring UAE.
- On the other hand, when it comes to imports, Saudi Arabia sources the majority of the consumer goods from – the EU, China, the US, and Germany.
The key strategic pillars of the trade infrastructure
The evolution of the infrastructure is supporting Saudi Arabia’s international commerce greatly. Now it has terrific prospects to become one of the most important economic narratives. The government has a strategy to transform the Kingdom’s rare, yet vital location into the epicenter of this part of the world. This plan should connect three continents – Asia, Europe, and Africa. Furthermore, the government wants to improve and upgrade ports, airports, and road networks to create a reliable system.
The outlook of the Saudi Arabia trading activity
The government is serious about encouraging trade and boosting assets. The Kingdom has put a lot of effort into solving these various challenges. All of which are likely to be resolved in the future. Do you think your business can benefit from the trading market here? Well then, there’s only one thing left to do – contact Four Winds Saudi Arabia! We can help you relocate any or all parts of your enterprise to the Kingdom of Saudi Arabia. There are various services you can choose from to plan your upcoming relocation. Therefore, you shouldn’t wait to book us. Call us now!