Contents. Introduction (6) Overall Export Performance (7) Changing Diversity of Non-Oil Exports Portfolio (8)

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2 Disclaimer The Export Performance Report is an annual report prepared by SAUDI EXPORTS. The purpose of this study is to provide a detailed analysis on Kingdom s exports based on available public information. Its analysis, perception and anticipation are subject to personal judgment. Saudi Exports is not liable for any consequences caused by the understanding and interpretation of any part of this report. Reported data as on July 3rd, 2017 has been used in the report data has been used wherever the latest data for 2016 was unavailable. The source for all the data is General Authority of Statistics, KSA unless mentioned otherwise.

3 Contents 1 Introduction (6) ٣ Overall Export Performance (7) Changing Diversity of Non-Oil Exports Portfolio (8) Industry Analysis (20) 3.1 Chemical and Polymers (22) 3.2 Building Material (30) 3.3 Food Products (40) 3.4 Heavy Machinery & Electronics (50) 3.5 Automobiles (60) 3.6 Consumer Durables (70) Breaking Down Kingdom s Exports (10) From SAR 217 Bn in 2014 to SAR 178 Bn in 2016 (14) ٢ Products with Growth Potential (80) ٥ ٤ Non-Oil Trade Balance (81) 5.1 Gulf Cooperation Council (GCC) (82) 5.2 GCC Singapore Free Trade Agreement (GSFTA) (83) 5.3 Greater Arab Free Trade Area (GAFTA) (84) 5.4 GCC Free Trade Association (EFTA) (85) Appendix I (86) FTA Member Countries Appendix II (88) Performance of Top 10 Non-Oil Products

4 Export Performance for Overall Export Performance 2016 was a year of recovery for Saudi Arabia as the total exports witnessed a slight increase after two years of subsequent decline. Though the oil exports rose in value, the non-oil exports on the other hand continued the negative trend for second year in a row. Summary KSA exported SAR 792 bn worth of goods in 2016 with oil exports contributing 7 of the total exports by value. The non-oil industry exports were SAR 178 bn in The Kingdom s net exports experienced an annual growth of 4% in Non-oil exports declined by 6% in 2016 while the oil exports saw an annual growth of 7%. Ten products with 80% share in non-oil exports, majorly impacted KSA s export performance. Chemical & Polymers dominated the non-oil exports with 54% share in 2016, valued at SAR 96 bn. However, the industry has seen a compounded annual decline of 2.1% since Some products have shown great potential in KSA s exports. The top six products gained SAR 5 bn in exports value since The Kingdom improved its trade balance in This report summarizes Kingdom s exports in The report also analyzes major industries including Chemical & Polymers, Consumer Durables, Heavy Machinery & Electronics, etc. Products with future potential and products having maximum impact on KSA s exports have also been reported. This report also dives into the trade balance for KSA with a focus on FTA (Free Trade Agreements) countries. Figure 1: Saudi Arabia s Exports Vis-a-vis Global Imports ( ) in billion SAR (Figure Source: UN Comtrade) 1,368 68,714 1,457 1,410 Figure 1 shows the historical trend of Saudi Arabia s exports for the past 6 years against the global imports. The total exports reached its highest value in 2012 (SAR 1457 bn) and had been declining since then at 1 per annum. In 2016, there was a recovery owing to a slight increase of 4% putting the total exports at SAR 792 bn. Non-oil exports grew by 7% annually, and peaked at SAR 187 bn in Since 2014, non-oil exports have been declining, primarily due to the loss in value of petrochemical exports. Oil exports Non-oil export Non-oil re-exports Global Oil imports Global Non-oil imports 69,781 71,208 71,250 1,285 6٢,٥٣٦ ,149 KSA exported around 40% of its non-oil exports to countries having FTAs with the Kingdom. For comments and queries please contact: Export Intelligence Saudi Exports Telephone: Kingdom of Saudi Arabia P.O. Box 75169, Riyadh , ١2,366 56, ٢ 201٣ 201٤ 201٥ 201٦ 1,٢٦٦ 1٦٣ ٢٨ ١٢ ٩٥٣ 56,828 1, ,600 58,608 1, ,764 59, ,157 55, ,795 54,353 Export Performance Report

5 Oil exports contribute a significant share of KSA s total exports and have dominated the overall trend. In 2016, oil s contribution to total exports reached 7 with a 3% increase from The contribution has dropped significantly since 2012 when it was 87% of total exports. Comparing to the global imports trends, Saudi Arabia performed relatively well in 2016 by registering a growth in exports while the global imports witnessed a decline. Saudi Arabia s oil exports grew by 7% in 2016 while global oil imports fell by 1 during the same period. Saudi non-oil exports on the other hand witnessed a decline of 6% while the global imports declined only by 2%. OPEC lost a significant share of its oil export revenues in 2016 owing to the surge in supply of oil by U.S.A. in the market after lifting of crude oil export ban by U.S.A. in December, However, Saudi Arabia increased its oil exports in 2016 earning the largest share in OPEC s oil exports 1. 1 Energy Information Administration, U.S.A. 0,04٨ 0,0٤٦ 0,04٤ 0,04٢ 0,04٠ 0,0٣٨ 0,0٣٦ 0,0٣٤ 0,0٣٢ 0,0٣٠ Number of products (HS6) 0,043 0,040 Figure 9: HHI for Saudi Arabia ( ) HHI-PCI and HH-MCI ٢ 201٣ 201٤ 201٥ 201٦ 0,043 0,040 Number of Markets 0,042 0,033 0,042 0,0٣٣ 0,046 0,037 0,046 0,037 PCI MCI 0,043 0,039 0,043 0,0٣٩ Figure 10: Number of products and markets 0,045 0,034 0,045 0,045 0,0٣٤ 0,045 0,031 0,0٣١ 3, , ,650 3,600 3,587 3,604 3,589 3,548 3,549 3, , Changing diversity of non-oil exports portfolio 3,500 3,450 3, Diversification in exports is measured using HH-PCI (Herfindahl-Hirschman Product Concentration Index) and HH- MCI (Herfindahl-Hirschman Market Concentration Index) for product and market concentration respectively. The indicators provide information about the concentration of a country s exports value in certain products or markets. Lower the value of HHI, lower is the dependency of country s export on a product/market. Figure 9 below shows the variation of HH-PCI and HH-MCI for kingdom s non-oil exports over the last 6 years while figure 10 shows the number of products exported by KSA and the number of importing markets. Saudi Arabia exports our period ( ) to ~200 countries globally and has an export portfolio of ~4600 products (at HS6 level) ٢ 201٣ 201٤ 201٥ 201٦ ٣,٥٨٧ ١٧٤ ٣,٦٠٤ ١٦٨ ٣,٥٤٨ ١٧٣ The above charts depict that PCI value has fallen over the years because of an increase in number of products exported while MCI on the other hand increased as number of importing markets declined to 165 in 2015 & A lower PCI is an indication of increased diversity which is substantiated by the increase in number of products exported. However, this is also a result of the reduction in export value of the leading export products, i.e. chemicals and polymers. Whereas even though the increase in MCI caused by the reduction in number of importing markets for KSA goods is not a good indication, the impact of this on kingdom s export value is insignificant owing to the miniscule share of those markets in kingdom s export portfolio. ٣,٥٨٩ ١٧٦ ٣, , Export Performance Report

6 2.0 Breaking down kingdom s exports Saudi Arabia s non-oil exports have primarily been driven by the exports of oil derivatives which comprise of chemicals, fertilizers, and polymer compounds. In the last 6 years, 60% of the non-oil exports were Petrochemical products. The second largest non-oil export sector was building materials which amounted to a humble share in the last 6 years non-oil exports. Figure 2 shows the historical trend and distribution of Saudi Arabia s non-oil exports at an industry level for the past 6 years. The top 6 industries combined, contributed to ~90% of the total exports of last 6 years. Non-oil exports in 2016 reached the level of 2011 exports with a marginal rise of 0.1%. Chemical & Polymers exports reached their peak in 2014 and have been declining ever since reaching below 2011 level. Industries experiencing high growth included Scrap (27.1%), Minerals (17.1%), Heavy Machinery & Electronics (14.7%), Pharmaceuticals (11.), and Precious metals & Jewelry (5.4%). Figure 3 shows the distribution of exports volume by industry for the same period. Overall exports volume increased by 2.6% from 2011 to Careful observation makes it clear that even though Chemical & polymer exports increased in volume, they dropped in value. This translates to the fact that there is an increasing global demand for oil derivative products manufactured in Saudi Arabia but these products are more like commodities/raw goods as their prices are highly dependent upon the oil prices. Figure 3: Saudi Arabia s Non-Oil Exports Volume by Industry ( ) in thousand tons 48,721 49,194 48,835 Chemicals & Polymers Building Materials Food Products 52,221 52,592 Heavy Machinery & Electronics Automobiles Consumer Durables 55,273 Growth Rate 6% 2.3% -1.3% 3.5% -1.7% -2. Chemicals & Polymers Building Materials Food Products Heavy Machinery & Electronics Automobiles Consumer Durables Figure 2: Saudi Arabia s Non-Oil Exports Value by Industry ( ) in billion SAR 3.5% ١٧٧ ١٩١ Growth Rate % 0.1% -3.1% ٢ 201٣ 201٤ 201٥ 201٦ 34,193 6,039 3, ,490 3٥,٧٠٠ ٤,737 3, ,920 3٥,308 ٤,918 3, ,990 38,959 ٤,798 3, ,723 38,700 5,106 3, ,958 40,637 5,237 3, , % 2.3% On the other hand, building materials and food products witnessed a decrease in their exports volume while still observing an increase in the exports value ٢ 201٣ 201٤ 201٥ 201٦ 1.0% -2.1% This comes as a good sign as it means that the complexity of products being manufactured is increasing and goods with higher added value are getting exported. Precious metals & Jewelry experienced a similar trend with 23.1% decrease in export volume and 5.4% increase in the export value ١٥ ١٠ 1٢ 6 ٢١ ١4 1٢ 7 ٢١ 134 1٦ 1٤ ١٣ 1١ 7 ٢٢ 1٠٦ 1٦ 1٤ ١٦ 1١ ٦ ٢٢ ٩٦ 1٥ 1٤ ١٥ 1٠ ٦ ٢٢ Export Performance Report

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8 From SAR 217 bn in 2014 to SAR 178 bn in 2016 The non-oil exports from KSA have declined from SAR 217 bn in 2014 to SAR 178 bn in This was a result of certain products experiencing growth (SAR 24 bn) while others witnessing a downfall (SAR 63 bn), which combinedly led to an overall loss (SAR 39 bn). Figure 4 shows the change in value exported in top six industries since 2014 along with the number of products responsible for that trend. Chemical & Polymers industry exports alone saw SAR 38.9 bn decline in value during Heavy Machinery & Electronics saw growth of SAR 1.4 bn in exports since 2014 but major industries like Building material and Automobiles declined by more than SAR 1 bn in value exported. Incremental change Detrimental change Overall change ٢.٩ ١.٣ (0.5) (1.0) (1.1) ٣.٠ ١.٧ The figure also shows total number of commodities that gained or lost value since KSA exported a total of 4193 commodities during 2014 and 2016, and almost 2100 of these commodities have gained value while 1930 saw a decline. The top 10 products exported by KSA in 2016 have contributed over 80% of the overall industry exports by value. The same 10 products were also the top exported products in 2014 with 84% share of the total industry exports by value. Figure 4: Change in exports of top 6 industries ( ) in billion SAR ٣.٨ Ten products in the Chemical & Polymer industry have led to SAR 35 bn decline Figure 5 shows the top 10 products by value in Chemical & Polymers industry exports. All 10 major products witnessed a decline in exports value since These 10 products combined, saw SAR 35.0 bn decline in exports value out of the total industry decline of SAR 38.9 bn since Figure 5: Top 10 products in KSA s Chemical & Polymers exports by value ( ) in billion SAR ٢٩٠٩٤٣ ٢٨١٤١٠ ٢٩٠٢٥٠ ٢٩٠٥١١ ٢٩٠٩١٩ ٢٩٠٥٣١ ٣١٠٢١٠ 2,6 3,0 4,5 4,3 4,1 4,3 3,7 4,1 3,9 3,3 5,1 4,9 5,9 5,9 5,8 6,2 7,7 7,4 8,8 1١,٣ 12,8 13,8 ٣١٠٢١٠ ٢٩٠٥٣١ ٢٩٠٩١٩ ٢٩٠٥١١ ٢٩٠٢٥٠ ٢٨١٤١٠ ٢٩٠٩٤٣ ,٤ 15,5 16,3 16,0 17,3 ٢٠١٤ ٢٠١٥ ٢٠١٦ 19,1 22,5 23,7 Code Product Name Polypropylene (PPE) High Density Polyethylene (HDPE) Low Density Polyethylene (LDPE) EGBE/DEGBE (ethers of glycol) Nitrogen fertilizers (Anhydrous Ammonia) Styrene Methanol (methyl alcohol) Acyclic ethers n.e.s; derivatives of acyclic ethers Ethylene glycol (ethanediol) Urea Number of products which gained value (HS6) Number of products which lost value (HS6) (38.9) 4,1 3,9 3,3 5,8 4,3 3,7 5,9 4,1 2,6 5,9 4,3 3,0 7,4 5,1 4,9 7,7 6,2 4,5 13,4 11,3 8,8 15,5 12,8 13,8 22,5 17,3 16,0 23,7 19,1 16,3 Building Materials Food Products Heavy Machinery & Electronics Automobiles Consumer Durables Chemical & Polymers The volume of Chemical & Polymers industry exports from KSA has increased from mn tons in 2014 to mn tons in ٢٦٤ ٢٦١ ٢٨١ ٢٦٥ ٤٢١ ٣١٠ ٧٠ ٧٣ ١٣٢ ٩٥ ٢١٢ ٢٦٩ In the overall industry exports, 10 products have dominated the volume of goods exported with 85% share in 2014 and 83% share in Export Performance Report

9 Figure 6 shows the top 10 products exported in the industry by volume. The top 10 products have seen 0.67 mn tons increase in volume exported since Figure 6: Top 10 products in KSA s Chemical & Polymers exports by volume ( ) in million Tons ٢٩٠511 ٢٠١٤ ٢٠١٥ ٢٠١٦ ٣,٥٨ ٣,٦٤ 4,51 4,54 4,53 4,48 4,٢٢ 4,٣١ 4,٣٧ 4,٢٤ 4,٤٥ 4,٤1 As mentioned, KSA s non-oil exports is dominated by Chemical & Polymers industry. Over 80% of the total industry exports are shared among the top 10 products. These 10 products have defined the trends for KSA s non-oil exports ,26 3,68 4,١٠ 4,17 4,14 4,4٠ In recent years, the value of these products has fallen from SAR 112 bn in 2014 to SAR 77 bn in This is almost 90% of the overall decline in KSA s non-oil exports ,14 3,26 3, ٢٩٠ ,٤٨ 1,3٧ 1,36 1,42 1,80 1,91 1,85 1,٧٧ 1,٧٨ Code Product Name Polypropylene(PP) High Density Polyethylene(HDPE) Nitrogen fertilizers (Anhydrous Ammonia) Methanol (methyl alcohol) EGBE/DEGBE (ethers of glycol) Urea Low Density Polyethylene (LDPE) Ethylene glycol (ethanediol) Acyclic ethers; derivatives of acyclic ethers Styrene ٢٩٠٥١١ ٢٨١٤١٠ ٣٩٠١٢٠ ٣٩٠٢١٠ 1,37 1,36 1,42 1,77 1,78 1,48 1,80 1,91 1,85 3,14 3,26 3,76 3,26 3,68 4,14 4,10 4,40 4,17 4,24 4,45 4,41 4,37 3,58 3,64 4,48 4,22 4,31 4,51 4,54 4,53 Export Performance Report

10 Figure 7 shows the global demand 2 (by volume) for top 10 products exported by KSA. 2 Countries that did not report import data for the products considered, have not been included in global demand. Figure 7: Global Demand for the top 10 exported products by volume ( ) in million Tons ٢٠١٤ ٢٠١٥ ٢٠١٦ ٣١٠٢١٠ ٢٩٠٥١١ 28,4 27,5 26,5 43,3 45,4 48,2 Figure 8 shows the change in volumes of top ten products in Chemical & Polymers industry. Global demands have fallen for these ten products while KSA s exports have increased for seven of these products. ٣٩٠١٢٠ ٣٩٠١١٠ ١٩,3 20,5 19,8 18,0 18,6 16,9 This shows that even though the exports for top ten products declined by SAR 35 bn, KSA has improved its performance in the exports of these ten products. For detailed analysis of each product, refer to Appendix II. ٣٩٠٢١٠ 17,4 18,0 16,6 KSA Exports Global Imports Figure 8: Volume change for top 10 products ( ) in million Tons & ,6 6,9 6,2 10,2 10,3 9,5 15,4 15,6 13,7 17,1 17,6 16,7 Code Product Name Acyclic ethers n.e.s; derivatives of acyclic ethers Styrene Ethylene glycol (ethanediol) EGBE/DEGBE (ethers of glycol) Nitrogen fertilizers (Anhydrous Ammonia) Polypropylene (PPE) Low Density Polyethylene (LDPE) High Density Polyethylene (HDPE) Methanol (methyl alcohol) Urea 0,03 (0,79) 0,16 (0,17) 0,47 0,06 (1,04) 0,88 0,62 (١,٠3) 0,43 (٠,٧٣) 0,05 0,29 (0,44) 0,05 (0,73) ,6 6,9 6,2 10,2 10,3 9, & ٣٩٠٢١٠ ٣٩٠١١٠ ٣٩٠١٢٠ ٢٩٠٥١١ ٣١٠٢١٠ ١٥,٤ ١٥,٦ ١٣,٧ ١٧,١ ١٧,٦ ١٦,٧ ١٧,4 18,0 ١٦,6 18,0 18,6 16,9 19,3 20,5 19,8 28,4 27,5 26,5 45,4 48,2 43, ,79 0,16 1,94 (1,94) 0,17 0,47 0,06 1,04 (2,٠8) ,88 2,08 0,62 1,03 0,43 0,73 (1,66) 0,05 1,66 0,29 0,44 0,05 0,73 Figure 7 shows that except HDPE, all the other products have witnessed a fall in global demands. The global demands for these ten products combined has declined from 178 million tons in 2014 to 169 million tons in The fall in global demand have not impacted Kingdom s exports however, as the exported volume from KSA has increased. KSA exported 33.0 million tons of the ten products combined in 2014, which increased to 33.7 million tons in KSA has strengthened its position in the exports of the top ten products in Chemical & Polymers industry. Even though global demands went down, the Kingdom managed to improve its exports. Export Performance Report

11 3.0 Industry Analysis 3.1 Chemical and Polymers

12 Chemical and Polymers is the major non-oil export industry in KSA, accounting for almost 55% of the total non-oil exports in GCC exported chemicals worth SAR 232 bn 3 in 2014 with Saudi having a share of 5. Top markets for KSA s Exports Total Exports 50% TOTAL EXPORTS SAR 96 BN China 1 India Singapore The Kingdom s exports in the industry has witnessed a decline due to increasing competition from other GCC countries. and Qatar are emerging exporters for Chemical and Polymers. Asia has continued its dominance in global chemicals market. Belgium 5% 5% Turkey 5% 3 GPCA (Gulf Petrochemical & Chemical Association) Basic Chemical Fertilizer Inorganic Chemical Polymers Figure 9: Saudi Arabia s Chemical & Polymers exports by value ( ) in billion SAR ١٣٤ ١٢١ ١١٥ ٢٠١١ ٢٠١2 ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١ % Figure 9 shows the sub industry classification of chemical and polymers. Basic Chemical and Polymers sub-industries occupy 90% of the total industry exports in The industry witnessed a steady growth till 2014 reaching a decade high of SAR 134 bn. This was followed by steep decline in past 2 years. The industry has an export valuation of SAR 96 bn as of The figure also shows major export destinations for the Kingdom in this industry. China and India are the leading importers for KSA s Chemical & Polymers exports with 1 and share in Kingdom s exports in Export Performance Report

13 China is the global leader in Chemical & Polymer market with total imports worth SAR 440 bn. South Korea, Japan and USA are the top trading partners for China in the industry. KSA also contributed about 6%in China s imports in India imports 24% of its Chemical and polymers from China. KSA is the second largest supplier to India with a decent share in India s SAR bn worth of imports. Singapore imports Chemical and polymers from USA and Saudi, while the major suppliers for Turkey are Germany and Saudi Arabia. The figures below show the top markets for major sub industries in Chemical & Polymers. The major sub industries are Basic Chemical, Polymers, Inorganic Chemical and Fertilizers. Figure 10: KSA s Basic Chemical exports China is a major importer of basic chemical from KSA with 35% market share. India is the next big destination with 11% share. 34% INDONESIA 4% 5% Singapore 5% TOTAL IMPORTS SAR 34 BN Belgium 6% India 11% China 35% Figure 11: KSA s Polymers exports Table below lists down the top markets for KSA s Chemical and Polymers exports. It also shows the Kingdom s share in total imports of the respective markets. Major markets Total imports (2016) in bn SAR KSA s share (2016) in bn SAR China % India % Singapore % Turkey % KSA s % share in % TOTAL IMPORTS SAR 52 BN Singapore 12% China Turkey Malaysia 7% Singapore China and Turkey are the top export markets. The total Polymer export in 2016 was SAR 52 bn. (Table s data source: UN Comtrade) India 5% 6% Export Performance Report

14 Figure 12: KSA s Inorganic Chemical exports India is leading Inorganic Chemical exports with 36% market share. Brazil and Australia have 12% and 10% share respectively. South Korea 5% Taiwan 5% 27% Argentina 5% TOTAL IMPORTS SAR 6 BN Australia 10% Brazil 12% India 36% 26% Figure 13: KSA s Fertilizers exports Thailand 23% TOTAL IMPORTS SAR 3 BN Bangladesh 7% U.S.A 17% Sudan 7% New Zealand Australia 11% Thailand, USA and Australia together imports over half of KSA s SAR 3 bn fertilizer exports. Export Performance Report

15 In 2016 Saudi exports value in the Polymers and Chemicals sector amounted to 95,522,674 SAR

16 3.2 Building Material

17 Building Material account for of KSA s total non-oil exports in GCC members have been major importers for KSA s Building Material industry. This can be attributed to a rising population in the region. Also, the region is about to host some important global events like the Dubai 2020 World Expo and the FIFA World Cup 2022 in Qatar which have led to an increased demand for construction and Building Material. The demand for building material is expected to rise further in coming years in view of these events. Top markets for KSA s Exports Total Exports Other 45% Qatar TOTAL EXPORTS SAR 15.2 BN South Korea 4% Bahrain 6% 21% Japan 7% Kuwait Figure 14 also shows major export destinations for the Kingdom in this industry. and Qatar are the leading importers of KSA s Building Material industry with 21% and share respectively in tops the importers list with a SAR 2.8 bn imports from KSA. The overall industry imports in are valued at SAR 66 bn which is driven by the region s rapid industrial growth. Due to similar reasons, Qatar and Kuwait also feature among top importers of KSA s building material with imports worth SAR 1.4 bn and SAR 1.2 bn respectively from KSA. Japan is another major importer with about SAR 0.7 bn of its imports coming from the Kingdom. Figure 14 shows the sub industry classification of Building Material exports in past 6 years. Figure 14: Saudi Arabia s Building Material exports by value ( ) in billion SAR 1% Bars & Rods Metal Sheets Pipes & Tubes Electric Wires & Fittings Table below lists down the top markets for KSA s Building Material exports. Also, it shows the Kingdom s share in total Building Material imports of the respective markets. Metal Sheets has seen a high demand in 2016, making it the major sub industry with 34% of the total industry exports. Bars & Rods on the other hand has been declining continuously and has slumped to 50% of its 2011 value. The overall industry has seen a compounded annual growth of 1% since 2011 and is valued at SAR 15.2 bn as of ١٤.٥ ١٣.٧ ١٣.٩ ١٦.٢ ١٦.١ ١٥.٢ Major markets Total imports (2016) in bn SAR KSA s share (2016) in bn SAR % Qatar % Kuwait % Japan KSA s % share in 2016 (Table s data source: UN Comtrade * Data is for 2015 due to unavailability of 2016 data) 201١ 201٢ 201٣ 201٤ 201٥ Export Performance Report

18 Figure 16: KSA s Metal Sheets exports Japan, South Korea and Malaysia are the top export markets for KSA with 20%, 12% and 10% share. Other 35% TOTAL EXPORTS SAR 5.١ BN Japan 20% South Korea 12% Italy 7% Malaysia 10% The figures below show the top markets for major sub industries in Building Material. The major sub industries are Bars & Rods, Metal Sheets, Pipes & Tubes and Electric Wires & Fitting. Taiwan 7% USA Figure 15: KSA s Bars & Rods exports 20% Egypt 7% Jordan Bahrain TOTAL IMPORTS SAR 2.5 BN Kuwait Qatar 13% 35% is the leading importer of Bars & Rods from KSA with 35% market share. Qatar is the next big destination with 13% share. Export Performance Report

19 Figure 17: KSA s Pipes & Tubes exports Other 22% Qatar 2٤% Bahrain 4% Oman 6% Kuwait 13% TOTAL EXPORTS SAR 2.١ BN Mexico 14% 26% Qatar, and Mexico are major trade partners with 24%, 17% and 14% share respectively. Kuwait also holds a 13% share. Figure 18: KSA s Electric Wires & Fitting exports Bahrain 7% Qatar 6% Netherland 2% Oman 2% Other TOTAL IMPORTS SAR 2.0 BN 60% Kuwait 14% imports almost 60% of KSA s SAR 2 bn exports in this sub industry. Export Performance Report

20 In 2016 Saudi exports value in the Building Material sector amounted to 15,195,111 SAR Export Performance Report

21 3.٣ Food Products

22 The middle-eastern countries are heavily dependent on food imports due to lack of arable land. Top markets for KSA s Exports Total Exports GCC has been exploring options for food security to serve its ever-rising population. The Economist Intelligence Unit expects GCC to spend SAR 200 bn on food imports by For the Kingdom s exports, Food Products is one of the industries that have shown growth in past 6 years and is valued at SAR14 bn in Similar to Building Material, GCC members have been major importers for KSA s Food Products industry. 27% 22% TOTAL EXPORT SAR ١٤.0 BN Dairy Products Fruit Juice & Beverages Bakery & Confectionary Fruits & Vegetable Figure 19: Saudi Arabia s Food Products exports by value ( ) in billion SAR Oman Kuwait 13% 2% Bahrain Jordan 10% Qatar 12% Figure 19 also shows major export destinations for the Kingdom in this industry ٢ 201٣ 201٤ 201٥ 201٦ and Kuwait were the leading importers for KSA s Food Products exports with 22% and 13% share respectively in Figure 19 shows the sun industry classification of Food Products. Dairy Products account for over 31% of the total food related exports in Bakery & Confectionary is another major sub industry with a 1 share in KSA s food exports in The dominance of these sub industries can be attributed to the fact that they do not require arable land. Export Performance Report

23 The figures below show the top markets for major sub industries in Food Products. The major sun industries are Dairy Products, Fruit Juice & Beverages, Bakery & Confectionary and Fuits & Vegetables. Figure 20: KSA s Dairy Products exports again features as a top importer for KSA s food products industry with a SAR 3.1 bn imports from KSA. Kuwait and Qatar also imported SAR 1.7 bn worth of Food Products each from KSA in Table below lists down the top markets for KSA s Food Product exports. Also it shows the Kingdom s share in total imports of the respective markets. is a major importer of Dairy Products from KSA with 2 market share. Kuwait is the next big destination with 17% share. Bahrain 10% Iraq 5% Oman 12% 13% TOTAL IMPORT SAR ٤.٤ BN Qatar 1٤% 2٩% Figure 21: KSA s Fruit Juice & Beverages exports Kuwait 1٧% Major markets Total imports (2016) in bn SAR KSA s share (2016) in bn SAR KSA s % share in % 17% Kuwait % Qatar % Jordan (Table s data source: UN Comtrade * Data is for 2015 due to unavailability of 2016 data) Yemen Qatar 10% TOTAL IMPORT SAR ٢.٤ BN Oman 11% Kuwait 12% Jordan 15%, Jordan and Kuwait are the top markets with 17%, 15% and 12% share in KSA s exports. Export Performance Report

24 Figure 22: KSA s Bakery & Confectionary exports Oman 6% 2 Bahrain Qatar TOTAL IMPORT SAR ٢.٦ BN Kuwait 11% 21% Jordan 1 Over 54% of the exports are targeted in the GCC region itself. Jordan is the top partner outside GCC with 1 share. Jordan 7% 2 TOTAL IMPORT SAR 1.3 BN Figure 23: KSA s Fruits & Vegetables exports 1 Kuwait 14% Bahrain Yemen 11% Qatar 1٤% The GCC countries dominate the imports from KSA with over 54% share. Yemen holds 11% share and leads the import outside GCC. Export Performance Report

25 In 2016 Saudi exports value in the Food Products sector amounted to 14,043,036 SAR Export Performance Report

26 3.٤ Heavy Machinery & Electronics Export Performance Report

27 Figure 24 also shows major export destinations for the Kingdom in this industry. and Bahrain importers for KSA s Heavy Machinery & Electronics exports with 46% and 15% share respectively in Top markets for KSA s Exports Total Exports 15% Heavy Machinery & Electronics has been the fastest growing industry for KSA s exports in past 6 years with a CAGR of 15%. One of the reason for this rapid growth is leasing, contractors in GCC often prefer to rent big machinery required on a specific project rather than buying. As mentioned, the top importers are dominated by Middle Eastern countries with leading the market for KSA s exports. imported SAR 0.2 bn worth of Heavy Machinery & Electronics from KSA in Bahrain, USA and Qatar are also major importers with a total of SAR 0.6 bn imports from KSA. Egypt 2% Kuwait 3% Qatar 7% USA 12% TOTAL EXPORTS SAR 14.9 BN Bahrain 15% 46% This is the major reason that Middle East members dominate the list of top importers. Another reason is that transportation for such heavy machines is fairly easier and cheaper in the Middle East. Figure 24: Saudi Arabia s Heavy Machinery & Electronics exports by value ( ) in billion SAR 15% 16.0 Mechanical Engines & Parts Electronics Electrical Batteries & Inductors 14.9 Water Distillation & Pumps Table below lists down the top markets for KSA s Heavy Machinery & Electronics exports. Also, it shows the Kingdom s share in total imports of the respective markets Figure 24 shows that Exports of Mechanical Engines & Parts is the sole driver of this industry s success. It accounts for 57% of total industry exports in 2016 and has grown at a CAGR of 3. Total industry exports value at SAR 14.9 bn which is 8.5% of total non-oil exports from KSA in Major markets Total imports (2016) in bn SAR KSA s share (2016) in bn SAR % Bahrain % USA % Qatar % KSA s % share in 2016 (Table s data source: UN Comtrade * Data is for 2015 due to unavailability of 2016 data) 201١ 201٢ 201٣ 201٤ 201٥ ٣.١ Export Performance Report

28 Figure 26: KSA s Electronics exports and USA are the majority markets with almost twothirds of total export directed to them. Netherlands 4% Qatar 3% Hongkong 6% 16% TOTAL IMPORTS SAR 1.8 BN 40% Bahrain The figures below show the top markets for major sub industries in Heavy Machinery & Electronics. The major sub-industries are Mechanical Engines & Parts, Electronics, Electrical Batteries & Inductors and Water Distillation & Pumps. USA 23% Figure 25: KSA s Mechanical Engines & Parts Qatar 7% Bahrain 21% USA 5% Kuwait 2% Italy 1% 6% TOTAL IMPORTS SAR 8.6 BN 5 imports almost 60% of KSA s total mechanical engines & parts exports followed by Bahrain with a 21% share. Export Performance Report

29 Figure 27: KSA s Electrical Batteries & Inductors exports 25% USA 25% Jordan 5% TOTAL IMPORTS SAR 0.8 BN Egypt 6% Kuwait Qatar 13% 1 USA and are again leading with 25% and 1 exports devoted to them. Figure 28: KSA s Water Distillation & Pumps exports Kuwait 5% Bahrain 5% Oman 22% USA TOTAL IMPORTS SAR 0.6 BN 17% Qatar 34% GCC countries imports majority of Water Distillation & Pumps with Qatar and together importing 51% of the total KSA exports. Export Performance Report

30 In 2016 Saudi exports value in the Heavy machinery & Electronics sector amounted to 14,888,222 SAR

31 3.5 Automobiles

32 Automobile exports are on a decline with a CAGR of negative 3%. The industry has a mere 6% contribution in non-oil exports due to lack of automobile manufacturing activity in the Gulf region. The GCC members heavily rely on import to meet internal vehicle demands. Region s high demand and Saudi s 100% ownership policy has attracted interest from leading manufacturers in recent years. The situation is likely to change in near future and Automobile industry is expected to show positive growth. Reports forecast 743 thousand new car sales in Top markets for KSA s Exports Total Exports 42% Bahrain 6% TOTAL EXPORTS SAR 9.8 BN Egypt 6% 1 UK 7% USA 11% France Figure 29 also shows major export destinations for the Kingdom in this industry. and USA are the leading export markets with 1 and 11% share respectively in again leads among the top importers with SAR 41 mn worth of imports from KSA in USA, France and UK have also contributed significantly in KSA s exports with a total of SAR 80 mn imports from the Kingdom. The values for Automobile exports are fairly low due to lack of production activity in the country as mentioned above. Figure 29 shows the Automobiles exports from KSA in past 6 years. The industry saw a growth during reaching SAR 12.4 bn. Figure ٢٩: Saudi Arabia s Automobiles exports by value ( ) in billion SAR Finished Automobiles Railway, Aircraft & Vessels Engines Body -3% Table below lists down the top markets for KSA s Automobiles exports. Also, it shows the Kingdom s share in total imports of the respective markets. However, Automobile exports have been declining since 2013 reaching lowest in past 6 years at SAR 9.8 bn. Finished Automobiles account for 4 of the industry exports from KSA in Body sub industry is the only one to have witnessed growth during ١١.٤ ١١.٦ ١٢.٤ ١٠.٩ ١٠.٦ ٩.٨ Major markets Total imports (2016) in bn SAR KSA s share (2016) in mn SAR * USA % France % UK % KSA s % share in 2016 (Table s data source: UN Comtrade) (* Data is for 2015 due to unavailability of 2016 data) 201١ 201٢ 201٣ 201٤ 201٥ 2016 ٥.٣ ٣.٨ ١.٨ 0.٤ ٠.٢ ٦.٢ ٤.٠ ٠.٨ 0.٤ ٠.٣ ٧.٥ ٢.٦ ١.١ 0.٢ ١.٠ ٥.٢ ٢.٢ ١.٦ 0.٦ ١.٢ ٤.٤ ٢.٧ ١.٥ 0.٨ ١.٢ ٤.٧ ٢.٧ ١.٠ 0.٧ ٠.٦ Export Performance Report

33 Figure 31: KSA s Railway, Aircraft & Vessel exports The figures below show the top markets for major sub industries in Automobiles. The major sub industries are Finished Automobiles, Railway Aircraft & Vessel, Engines and Body. Figure 30: KSA s Finished Automobiles exports Developed economies lead the exports share with France and USA account for 25% & 22% share in KSA s total exports followed by and UK. Bahrain 7% Spain 4% UK 13% 15% 14% TOTAL IMPORTS SAR 2.7 BN France 25% U.S.A 22% 34% Kuwait Bahrain TOTAL IMPORTS SAR 4.7 BN Sudan 24% China Egypt 11% The major exports in this category are commercial and public vehicles. tops the chart with a 24% share in total exports from KSA. Export Performance Report

34 Figure 32: KSA s Engines exports 22% UK 22% MENA region imported over 80% of the Body exports from KSA. USA also imported 6% of the total exports. U.S.A 4% TOTAL IMPORTS SAR 1.0 BN Canada 7% Singapore Germany 21% 15% Figure 33: KSA s Body exports 21% Kuwait 23% Once again, the sub industry is dominated by developed economies having superior trade relations with KSA. UK has the highest share of 22%. Bahrain 3% USA 6% Egypt 11% TOTAL IMPORTS SAR 0.7 BN Qatar 20% 16% Export Performance Report

35 In 2016 Saudi exports value in the Automotive sector amounted to 9,770,912 SAR

36 3.٦ Consumer Durables

37 Consumer Durables accounts for only 4% of total non-oil exports from Saudi, but the industry has been consistent without any significant difference in past 6 years. Top markets for KSA s Exports Total Exports 26% 25% Figure 34 also shows major export destinations for the Kingdom in this industry. & Kuwait are the leading importers for KSA s Consumer Durables export with 25% and 20% share respectively in GCC members top the importers list again for KSA s Consumer Durables exports with 6 of the total Saudi exports directed to the 5 GCC members only. Jordan 6% TOTAL EXPORTS SAR 6.1 BN and Kuwait have each imported SAR 1.9 bn worth of consumer durables from Saudi Arabia. Qatar and Oman also imported and 13% of their net consumer durables imports respectively from the Kingdom. Figure 34 shows that Toiletries and Soap & Washing Agents are two major sub industries with 71% combined share in the total industry exports form KSA in The industry initially saw a growth during and a decline during which resulted in a net CAGR of 0%. Bahrain 6% Oman Qatar Kuwait 20% Figure ٣٤: Saudi Arabia s Consumer Durables exports by value ( ) in billion SAR Toiletries Soap & washing Agents Consumer Electronics Kitchen Goods % Table below lists down the top markets for KSA s Consumer Durables exports. Also, it shows the Kingdom s share in total imports of the respective markets. Major markets Total imports (2016) in bn SAR KSA s share (2016) in bn SAR KSA s % share in % Kuwait % Qatar % Oman % (Table s data source: UN Comtrade * Data is for 2015 due to unavailability of 2016 data) 201١ 201٢ 201٣ 201٤ 201٥ Export Performance Report

38 The figures below show the top markets for major sub industries in Consumer Durables. The major sub industries are Toiletries, Soap & Washing Agents, Kitchen Goods and Consumer Electronics. Figure 35: KSA s Toiletries exports GCC region dominates the toiletries exports. The tax and trade liberalization prompts the GCC countries to import internally. Jordan 6% 2 Bahrain 6% Oman TOTAL IMPORTS SAR 2.3 BN Qatar 10% 23% Kuwait 1 Figure 36: KSA s Soap & Washing Agents exports Bahrain 6% Oman 10% Jordan 5% 14% TOTAL IMPORTS SAR 2.0 BN 2 Over 80% of the exports are distributed in GCC. This is again due to the ease of policies and transportation. Qatar 10% Kuwait 26% Export Performance Report

39 Figure 37: KSA s Kitchen Goods exports MENA region accounts for more than three quarters of the total exports from KSA. Sudan 6% Kuwait 6% 24% Jordan 13% TOTAL IMPORTS SAR 0.6 BN Iraq 15% 21% Libya 15% Almost 75% of the Consumer Electronics has been exported to GCC countries only. Figure 38: KSA s Consumer Electronics exports 15% 31% Qatar Bahrain TOTAL IMPORTS SAR 0.6 BN Egypt 10% Kuwait 15% Oman 10% Export Performance Report

40 In 2016 The value of Saudi exports in the Consumer Durables sector amounted to 6,095,992 SAR Export Performance Report

41 4.0 Products with Growth Potential As shown in figure 4, KSA s overall non-oil exports have declined by SAR 39 bn since Over 50% (2100 HS6 products) of the total products exported have improved in value which led to a growth in exports of SAR 24 bn. 5.0 Non-oil Trade Balance The trade balance has been negative during 2011 to This shows that for all these years, value of total imports has been higher than exports for KSA. Figure 40 shows KSA s global trade balance from In 2016, the trade balance was the highest after 2011 at negative SAR 342 bn. This rise in trade balance in 2016 was due to a decline in imports from SAR 651 bn in 2015 to SAR 519 bn in Both exports and imports have been dominated by the six major industries discussed in section 3. In 2016, the total imports in KSA from the top six industries was SAR 402 bn globally which is around 77% of the total imports in the Kingdom. Figure 39 shows the top six products that showed maximum growth in value exported since These top six products improved in value by SAR 5 bn which is over 20% of the total value gain in exports. Top 10% percent of these products contributed to 86% of the total growth. Non-monetary gold (not jewelry) showed the highest growth of SAR 2 bn since Exports Imports Trade Balance Figure 40: KSA s Trade Balance in billion SAR Figure ٣٩: Top six products that gained value in KSA s exports ( ) in million ٢٠١٤ ٢٠١٥ ٢٠١٦ ١٧٥ ,٠٧٩ ,158 3,094 ٤٨٩ ٢٠١١ ٢٠١١ ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١6 ١٧٥ ٤٨٩ ٣١٣ ١٩١ ٥٨١ ٣٩٠ ٢٠٢ ٦٢٣ ٤٢٠ ٢١٧ ٦٤٣ ٤٢٦ ١٩٠ ٦٥١ ٤٦١ ١٧٨ ٥١٩ ٣٤٢ ٩٤٢ ١,٢٦٤ 1,544 Product Code Product Name Non-monetary gold (not jewelry) EVA copolymers PPC (Polypropylene Copolymers) Aircraft parts Vessels (excluding warships and rowing boats) Low fat milk (not exceeding 1% fat) To improve their exports, countries often sign trade agreements with other countries in order to reduce the barriers to trade ٢٦٠ ٢٧٧ ٧٧٨ ٣ ٤ ٦٠٢ ٩٤٢ ١ ٢٦٤ ١ ٥٤٤ ١٩٩ ١٥١ ٨٣٠ ٣٠ ٦١٥ ٦٨١ ١ ٠٧٩ ١ ١٥٨ ٣ ٠٩٤ These agreements are called Free Trade Agreements or FTA s. We have evaluated KSA s trade balance with its various FTA members. The agreements ٥ focused in the report are: GCC, GAFTA, GSFTA and EFTA. ٥ Appendix: Member countries under various FTA agreements with KSA Export Performance Report

42 5.1 Gulf Cooperation Council (GCC) 5.2 GCC Singapore Free Trade Agreement (GSFTA) Figure 41 shows KSA s trade balance with the GCC members. The GCC have a Free Trade Agreement among its six members. The trade balance for KSA with other five members has been almost even during In 2016, the trade balance was the highest in past six years at SAR 9.7 bn. Primary products exported from KSA to GCC members in 2016 are Mechanical Engines & Parts (16%), Polymer (), Dairy Products (7%) and Precious Metals (4%). Primary Products imported by KSA from its GCC partners in 2016 are Precious Metals (14%), Bars & Rods () and Electric Wires & Fittings (7%). Figure 42 gives Kingdom s trade balance with Singapore. The GSFTA was signed in 2008 to facilitate Free Trade between the GCC members and Singapore. The trade balance has been positive from 2011 to 2016 with KSA dominating the exports in Chemical and Polymer industry. In 2016, the trade balance was SAR 6.3 bn in favor of KSA. KSA exports to GSFTA member were dominated by Polymer (75%) and Basic Chemical (20%). Primary products imported by KSA from Singapore are Pipes & Tubes (12%), Polymer () and Electronics (6%). Exports Imports Trade Balance Figure 41: KSA s trade balance with GCC members In billion SAR Exports Imports Trade Balance Figure 44:KSA s Trade Balance with EFTA members in billion SAR ٤٤.٩ ٤٧.٧ ٤٨.٠ ٤١.٠ ٤٤.٦ ٣٧.٣ ٦.٦ ٢.٦ ٢.٣ ١.٥ ٠.٤ ٩.٧ ٣٠.٨ 2.4 ٣٨.٣ ٣٨.٣ 4.0 ٤٧.٢ ٤٦.٢ ٤٧.٣ ٢٠١١ ٢٠١2 ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١6 ٣٧.٣ ٣٠.٨ ٦.٦ ٤١.٠ ٣٨.٣ ٢.٦ ٤٤.٩ ٤٧.٢ ٢.٣ ٤٤.٦ ٤٦.٢ ١.٥ ٤٧.٧ ٤٧.٣ ٠.٤ ٤٨.٠ ٣٨.٣ ٩.٧ ٢٠١١ ٢٠١2 ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١ Export Performance Report

43 5.3 Greater Arab Free Trade Area (GAFTA) 5.4 GCC Free Trade Association (EFTA) logo GAFTA is a program aimed at trade facilitation and development in the 18 members which are all Arab countries. The program came in force on January 1st Figure 43 shows the trade balance for KSA with the GAFTA members excluding the GCC members. Trade balance has been in KSA s favor in past six years. In 2016, KSA exported over SAR 70 bn worth of goods to GAFTA members with a positive SAR 15.8 bn trade balance. Here also, the top six industries contribute to over 80% of the total exports from KSA to GAFTA members. The non GCC members in GAFTA agreement imported SAR 22.4 bn worth of goods from KSA. The Kingdom also imported SAR 16.4 bn worth of goods from GAFTA members which outside GCC. Primary products exported by KSA to all the 17 members of GAFTA are Polymer (17%), Mechanical Engines & Parts (11%), Dairy Products (6%) and Finished Automobiles (5%). Primary products imported by KSA with GAFTA members are Precious Metals (10%), Bars & Rods (7%), Electric Wires & Fittings (6%) and Fruits & Vegetables (5%). EFTA is the European Free Trade Association that has four member nations Iceland, Liechtenstein, Norway and Switzerland. Figure 44 shows the trade balance for KSA with the 4 EFTA members. The trade balance for KSA with EFTA members has been negative in past six years. Switzerland has been the top exporter to KSA among the 4 members with over 93% share in total EFTA exports to KSA. Primary product exported by KSA to EFTA members in 2016 is Precious Metals with a 91% share in total exports. Imports from EFTA members in 2016 are dominated by Precious Metals (17%), Watches (14%), Electric Wires & Fittings (14%) and Drug (14%). Exports to non-gcc Imports from non-gcc Trade Balance with non-gcc Figure 43: KSA s trade balance with GAFTA members In billion SAR Exports Imports Trade Balance Figure 42: KSA s trade balance with GSFTA member (Singapore) In billion SAR ٢٧.٦ ١٢.٤ ٢٨.٣ ١١.٨ ١.١ ١.١ ٣٠.٠ ٢٨.٩ ٠.٥ ٠.٤ ٢٥.٤ ٢٢.٤ ١١.٤ ١٣.١ ١٢.١ ١٢.٣ ٦.٩ ٦.٠ ١٢.٦ ١٤.١ ١٩.٠ ١٧.٩ ٠.٥ ١.١ ١٥.٢ ١٦.٤ ١٦.٧ ١٧.٧ ١٨.٥ ١٦.٤ ٢٠١١ ٢٠١2 ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١6 ٢٠١١ ٢٠١2 ٢٠١3 ٢٠١4 ٢٠١5 ٢٠١ Export Performance Report

44 Appendix I FTA member countries Agreement Member Countries GCC Bahrain, Kuwait, Qatar, Oman, GAFTA Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Sudan, Syria, Tunisia,, Yemen GSFTA Singapore EFTA Iceland, Liechtenstein, Norway, Switzerland

45 Appendix II Performance of top 10 non-oil products Export Performance Report

46 1. Polypropylene (PPE, Code: ) 2. High Density Polyethylene (HDPE, Code: ) Polypropylene (PPE) demand has fallen from 17.4 mn tons in 2014 to 16.6 mn tons in The net exports value fell from SAR 23.7 bn in 2014 to SAR 16.3 bn in The volume exported by KSA has been consistent at 4.5 mn tons despite the global drop which helped KSA strengthen its position in Polypropylene (PPE) market. The top markets for KSA s Polypropylene (PPE) exports are Turkey and Malaysia. Turkey imported SAR 6.9 bn worth of Polypropylene (PPE) in 2016 while Malaysian imports were SAR 2 bn. Table* below shows KSA s share in top markets by volume. * Table Data Source: UN Comtrade HDPE with a global demand of approx. 20 million tons in 2016 was the only product in Chemical & Polymers industry to witness an increase in demand since The demand increased by 0.5 million tons globally. KSA exported SAR 16 bn worth of HDPE in 2016 compared to SAR 22.5 bn in The volume exported by KSA also declined by 0.2 million tons since The top markets for KSA s HDPE exports are Singapore and China. Singapore imported SAR 2.1 bn worth of HDPE in 2016 while China imported SAR 22.5 bn worth of product. Table* below shows KSA s share in top markets by volume. * Table Data Source: UN Comtrade Market Total Imports (in tons) Imports from KSA (in tons) KSA s share in imports (by volume) Market Total Imports (in tons) Imports from KSA (in tons) KSA s share in imports (by volume) Turkey 1,622, ,407 33% Singapore 513, ,989 90% Malaysia 475, ,739 72% China 5,278,456 1,008,807 1 KSA Egypt Iran India Figures below show the major Polypropylene (PPE) suppliers to Turkey and Malaysia. KSA has been the dominant supplier in both markets. KSA USA Qatar Figures below show the major HDPE suppliers to Singapore & China. KSA was one of the major suppliers in both market in the last 3 years. Turkey In million tons Fig 45: Turkey s Propylene (PPE) import partners Overview Singapore In million tons Fig 47: Singapore s HDPE import partners Overview ٢٠١4 37% 6% 7% Kingdom lost its share in Turkey, however it progressed in 1.62 other markets like Malaysia Large markets like China have decreased their imports for Polypropylene (PPE) by 15% since 2014, but continued their imports from KSA ٢٠١٥ 31% 12% 7% ٢٠١٦ 33% 15% This has led the Kingdom to strengthen its position in global Polypropylene (PPE) exports. The value lost in KSA s exports can be attributed to the oil price drop. KSA Singapore Thailand South Korea ٢٠١4 75% 20% 1% 2% ٢٠١5 7 16% 2% 1% ٢٠١٦ 90% 5% 2% 1% 0.51 KSA has virtually monopolized Singapore s market in Chinese market saw an increase in demand since 2014 which improved KSA s exports by 80,000 tons even after losing 1% share. KSA also gained 200,000 tons in Malaysia market since The drop 0.2 mn tons in KSA s exports was contributed by a drop in small market exports. KSA Iran South Korea Malaysia In million tons Fig 46: Malaysia s Propylene (PPE) import partners China In million tons Fig 48: China s HDPE import partners Turkey: KSA has lost 4% of its share in Turkey s imports since 2014 however the volume exported has declined only by 25,000 tons Singapore: KSA has a monopoly in Singapore s HDPE imports with over 90% share having a valuation of SAR 1.9 bn in Malaysia: KSA has gained 3% share in Malaysian market. The volume exported rose by 70,000 tons since ٢٠١4 ٢٠١5 ٢٠١6 China: KSA has lost 1% share in Chinese market however, the volume exported has increased by 80,000 tons since ٢٠١4 ٢٠١5 ٢٠١6 6 11% 7% 4% 73% 10% 5% 3% 72% 12% 4% 3% 20% 22% 13% 13% 1 22% 15% 11% 1 24% 15% 10% Export Performance Report

47 3. Low Density Polyethylene (LDPE, Code: ) 4. Anhydrous Ammonia (Code: ) LDPE 7 was one of the products that performed poorly in 2016 with global demand falling more than a million ton since The demand fell to 16.9 million tons in 2016 from 18 million tons in KSA exported SAR 13.8 bn worth of LDPE in 2016 compared to SAR 15.5 bn in The volume exported by KSA has increased by 0.7 million tons since 2014 which has strengthened KSA s position. The top markets for KSA s LDPE exports are Singapore and China. Singapore imported SAR 2.8 bn worth of LDPE in 2016 while China imported SAR 9.4 bn worth of product. 7 Polyethylene having a specific gravity of less than 0.94 Table* below shows KSA s share in top markets by volume. * Table Data Source: UN Comtrade Anhydrous Ammonia saw 0.4 mn tons shortage in global demand since 2014 whereas KSA s exports declined by 0.8 mn tons. The value of Anhydrous Ammonia exported by KSA fell from SAR 7.7 bn in 2014 to SAR 4.5 bn in The top markets** for KSA s Anhydrous Ammonia exports are India and South Korea. India imported SAR 2.8 bn worth of Anhydrous Ammonia in 2016 while South Korea s imports were SAR 1.5 bn. ** Brazil has 15% share in KSA s exports but due to data unavailability, South Korea has been reported in major market section. Table* below shows KSA s share in top markets by volume. * Table Data Source: UN Comtrade Market Total Imports (in tons) Imports from KSA (in tons) KSA s share in imports (by volume) Market Total Imports (in tons) Imports from KSA (in tons) KSA s share in imports (by volume) Singapore 652, ,389 85% India 2,296, ,419 1 China 2,052, ,086 South Korea 1,162, ,608 21% KSA Netherlands Brazil Figures below show the major LDPE suppliers to Singapore & China. KSA was one of the major suppliers in both market in the last 3 years. KSA Iran Ukraine Qatar Figures below show the major Anhydrous Ammonia suppliers to India and South Korea. KSA has been one of the major suppliers in both markets for the last 3 years. Singapore In million tons Fig 49: Singapore s LDPE import partners Overview India In million tons Fig 51: India s Anhydrous Ammonia import partners Overview Singapore s imports are monopolized by KSA because of being a major transshipment hub for Saudi goods in South East Asia ٢.٠٣ Although global demand has declined, KSA s exports have ٢.١٦ boomed in its major markets especially Malaysia. ٢.٣٠ Anhydrous Ammonia is one of the products in which KSA has performed poorly in recent years. Exports have declined by 0.8 mn tons which is more than the global decline of 0.4 mn tons. ٢٠١4 ٢٠١٥ ٢٠١٦ This helped KSA to improve LDPE exports and its position in global market. ٢٠١4 ٢٠١5 ٢٠١٦ This shows KSA has lost its hold in global exports of Anhydrous Ammonia. KSA also lost share in major markets like India and South Korea. 82% 7% 2% 2% 81% 4% 3% 1% 85% 2% 1% 2% KSA Iran South Korea Qatar 2 34% 13% % 20% 20% 1 24% 21% 16% KSA Australia Indonesia Malaysia Singapore: KSA has a monopoly in Singapore s LDPE imports with over 85% share having a valuation of SAR 2.3 bn in China In million tons Fig 50: China s LDPE import partners 2.05 India: KSA has lost of its share in India s imports since 2014 and the volume exported has declined by 120,000 tons. South Korea In million tons Fig 52: South Korea s Anhydrous Ammonia import partners 1.16 China: KSA share in Chinese market has been consistent, however the volume exported has decreased by 8,000 tons since ٢٠١4 ٢٠١5 ٢٠١6 South Korea: KSA has lost almost half its share in South Korean market since 2014 causing a drop of 240,000 tons. ٢٠١4 ٢٠١5 ٢٠١6 25% 12% 22% 12% 11% 23% 11% 12% 43% 27% 11% 23% 30% 21% 12% 21% 14% 30% 7% Export Performance Report