Non-oil exports from the Saudi Kingdom drop
Saudi nonoil exports showed a retraction of 2.3 percent in June in comparison to the previous month and a moderate 7.7 percent decline over the last 12-month period in value terms edging down to SR 14.5 billion. Volume-wise, nonoil exports debilitated by 5.7 percent monthly, and 11.1 percent on an annual basis, the National Commercial Bank (NCB) said in its Saudi Economic Review.
Ranking first in export categories is petrochemicals, which captures 36.7 percent of all nonoil exports, at the value of SR 5.3 billion withdrawing 3.7 percent from the prior month's total; whereas, on a Y/Y basis it still managed to register a 1.5 percent gain.
Plastics, which lands second in value terms with its procurement of 29.8 percent of the Kingdom's nonoil exports revenue made a 2.9 percent M/M contraction, while expanding by 11 percent Y/Y. Foodstuffs exports fell by 5.5 percent since May, however; it remained stagnant at an annual level.
The NCB report said exports by direction show a rise of 3.7 percent M/M and a 5.5 percent Y/Y in outflows to China, the biggest recipient of Saudi exports amounting to 12.9 percent of the total. Followed by Singapore, which has as much as 10.2 percent of Saudi exports apportioned to it growing by 35.8 percent since last month, a 92.8 percent surge over the same period last year. On the other hand, exports to the UAE which account for 9.3 percent of the Kingdom's exports dropped 5.5 percent downwards M/M, posing a 19 percent decrease Y/Y.
Nonoil imports inched lower by 0.5 percent on par with the past month while they shot up by 23.4 percent Y/Y. Imports by category show a 2.8 percent increase over May in machinery, mechanical appliances, electrical equipment and parts thereof, which constitutes 27.2 percent of the Kingdom's nonoil imports, climbing by 25.2 percent Y/Y.
Transport Equipment, the second largest, making 17.5 percent of total imports, contracted by 3.5 percent since May but escalated by 43.4 percent compared to June of last year. Base Metals and articles of base metals, which occupies 14.9 percent of the imports' value rose on both monthly and annual basis by 7.2 percent, and 18.1 percent, respectively.
China tops the list of imports source with 13.6 percent of imports bearing Chinese origin. Imports from China proliferated back by 2.9 percent M/M, and 12.8 percent Y/Y. The United States comes second as an importer, capturing 12.5 percent of imports share as its monthly inflow decreased by 5.5 percent, reflecting a 31.4 percent Y/Y increase. South Korea, making 7.2 percent of imports surged by 11.2 percent M/M, and 14.7 percent Y/Y.
Newly opened letters of credit (LCs) showed an annual growth of 6.6 percent in July as they declined by 5.4 percent from June's figure.
This, on part, is attributed to the accelerated waning in building materials, which makes up 10 percent of LCs, falling by 22 percent from last month, although it registered a 7 percent increase over last year. Motor Vehicles, which carries 17 percent of LCs weight, experienced a monthly boost of 55 percent while topping last year by 3 percent. While Machinery, with its 14 percent constitution of LCs weight marked a 25 percent downturn M/M, and a 10 percent upturn Y/Y.
Foodstuffs LCs uplifted by 59 percent since last month, and gained a staggering 111 percent increase over the same period last year.
Settled LCs for July reflected a 28.6 percent monthly surge in Motor Vehicles making a 41.4 percent increase year on. Machinery slipped down by 10.6 percent M/M while surged annually by 34.4 percent.
Settled Building Material LCs inched lower than last month by 6.6 percent as it maintained an upward annual change of 5 percent.
Foodstuffs rose both monthly and annually, recording 10.6 percent and 36.3 percent respectively.