The Kingdom of Saudi Arabia's flag
Saudi Arabia will be a key driver of the global trade growth, with its exports projected to increase at an average annual rate of 7.6% to reach $354 billion by 2030, Standard Chartered said in a new research report.
Additionally, the research found that 18% of global corporates currently manufacture or source in Saudi Arabia or plan to within the next five to 10 years. “This is evidence that Saudi Arabia will be a major driver of global trade growth over the next decade,” it noted.
The report sees global exports nearly doubling from $17.4 trillion to $29.7 trillion over the next decade.
Mainland China and South Korea will continue to be among the largest export corridors for Saudi Arabia, accounting for 20% and 8% of total exports in 2030, respectively.
India is the fastest-growing export corridor for the Kingdom, with an average annual growth rate of 10.9% from 2020 to 2030.
“In Saudi Arabia, diversification of export sectors away from oil will be the key driver of its trade performance in the next decade,” said Yazaid Al Salloom, CEO of Standard Chartered Bank Saudi Arabia.
“Furthermore, sustainability is at the forefront of the nation’s economic transformation, and we expect to see a shift towards adopting more inclusive, sustainable and fair-trade practices that will result in positive environmental and social impact,” he added.
Standard Chartered expects the metals and minerals sector to dominate Saudi Arabian exports in 2030, holding 80% share of total export. It will be followed by plastics and rubbers with 7%, and chemicals and pharmaceuticals with 6%, the report noted.
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