Here’s what you need to know ahead of the Tadawul trading week
RIYADH: Trade volume between Saudi Arabia and the United States reached SR 92.5 billion ($24.7 billion) in 2021, a 22% increase from 2020, non-oil exports from the Kingdom to the United States having reached an all-time high, according to a report. .
This increase in volume reflects a strong rebound in trade relations between the two countries after the trough of the pandemic in 2020, according to a report by the US-Saudi Business Council.
Total Saudi exports jumped to SR50.7 billion in 2021 from SR33.7 billion the previous year.
Saudi Arabia’s non-oil exports surge in 2021
Saudi non-oil exports to the United States increased by 72% to SR 9.1 billion, marking the highest annual level of non-oil exports in history.
Fertilizers were Saudi Arabia’s top non-oil export to the United States, accounting for SR2.6 billion or 29% of non-oil exports, while exports of urea, a common nitrogen fertilizer, doubled in the last decade from SR375 million to SR750. million.
Oil exports to the US increased by 46% from SR 28.5 billion to SR 41.6 billion, with organic chemicals being the second largest non-oil export to the US in 2021 , representing SR 1.9 billion or 21% of the non-oil total.
Saudi exports of organic chemicals to the United States increased by 108% in 2021 compared to the previous year.
Growth in the Kingdom’s metal and mineral exports continued in 2021, with aluminum rebounding from a slight decline in 2020 to set a new record, according to the report.
Saudi aluminum exports to the United States increased by 24% from the previous year, reaching SR 1.3 billion, becoming Saudi Arabia’s third largest non-oil export to the United States.
Motor Vehicles: America’s Largest Export to Saudi Arabia
Meanwhile, US exports to Saudi Arabia increased by 0.3% from the year 2020 to SR41.8 billion, including electrical, mechanical, industrial, agricultural and pharmaceutical products.
Motor vehicles were the largest US export to Saudi Arabia in 2021, totaling SR7.1 billion.
About 75% of motor vehicle exports to Saudi Arabia were consumer vehicles, while the remaining 25% comprised motorized military vehicles, tractors, trailers and other related parts.
U.S. vehicle exports to Saudi Arabia increased 16% in 2021 from a year earlier.
The second largest export category, consisting of boilers, machinery and parts, accounted for 12% of US goods exported to the Kingdom in 2021, reaching SR5.2 billion.
The third largest export segment consisted of aircraft and spare parts, which totaled SR 5 billion. Civil aircraft goods decreased by 67% while the value of helicopter exports increased by 78%.
Texas became the top U.S. state trade with Saudi Arabia, exporting SR7.2 billion worth of goods, followed by Maryland, which grew 69% year-on-year with a total value of SR4. SR.1 billion, and California, which exported a total of SR.4.1 billion. of SR 2.5 billion.
Exports to Saudi Arabia between these three states combined supported an estimated 17,721 U.S. jobs in 2021, according to the report.
Louisiana was the top US importer of non-petroleum products from Saudi Arabia in 2021 with a total value of SR1.9 billion in fertilizer imports.
Indiana was the second largest importer of Saudi non-oil products in 2021 with a value of SR 993 million, 97% of which was aluminum products.
Texas imported SR17.8 billion worth of goods from the Kingdom, 95% of which was crude oil, but remained the third largest importer of non-oil goods, accounting for SR922 million.