Saudi authority expects commodity exports’ volume to rise to SAR 100 bln in H2 2020

The volume of commodity exports is expected to rise by 16% in the second half of 2020 to reach SAR 100 billion, compared to H1 2020, CNBC reported, citing Secretary General of Saudi Exports Development Authority (SEDA), Saleh Al Solami.

Al Solami indicated that in the past two months, the market witnessed an improvement in commodity exports, in addition to a gradual improvement in the prices of petrochemical products.

He also added that markets such as China showed an improvement in demand.

Al Solami further stated that commodity exports were affected during H1 2020 due to the COVID-19 pandemic, as total commodity exports fell by 25% to SAR 85 billion from SAR 113 billion in H1 2019.

Gobal as well as the Kingdom’s precautionary measures taken to confront COVID-19 affected industrial activity, production and service sectors, he added.

During the crisis, the petrochemical sector was highly impacted, as it commands the major share in commodity exports by 60%, in addition to the drop in oil prices, which contributed to the decline in the prices of petrochemical products.

Meanwhile, other sectors were also affected by supply chains and imported inputs, which led to a decrease in the production capacity of local factories, Al Solami said.