29 Oct 2024
RIYADH: Saudi Arabia’s trade with the UAE has experienced a 25 percent increase, highlighting a significant boost in economic collaboration between the two nations. By the end of 2023, the trade volume reached SR113 billion ($30 billion), up from SR90 billion in 2019.
During the third Saudi-Emirati Economic Forum held in Riyadh, Saudi Minister of Economy and Planning Faisal Al-Ibrahim announced that direct Emirati investments in Saudi Arabia have also grown, reaching SR111 billion by the end of 2023—a 15 percent increase compared to the previous year.
“We are witnessing tangible outcomes from our clearly defined vision and ambitious strategy for economic cooperation,” Al-Ibrahim stated.
He noted that over the past five years, trade volume has risen nearly 25 percent, with thousands of registered trademarks, agencies, and companies operating across various sectors, including mining, trade, and real estate.
UAE Minister of Economy Abdullah Al-Marri highlighted that in 2023, non-oil foreign trade between the two countries reached 137 billion dirhams ($37.3 billion), emphasizing the strength of their economic partnership. Non-oil trade surged to 75 billion dirhams in the first half of 2024, reflecting an impressive growth rate of over 18 percent compared to the same period in 2023.
“In 2023, UAE investment in Saudi markets exceeded 15.7 billion dirhams, marking a 6 percent growth from 2022,” Al-Marri added.
Additionally, the cumulative stock of Saudi investments in the UAE reached $6.5 billion by the end of 2022, making Saudi Arabia the fourth largest investor in the UAE.
Al-Marri noted that tourism plays a vital role in their economic relations, with Saudi Arabia ranking among the top 10 tourism markets for the UAE. Over 1.7 million Saudi tourists visited the UAE in 2023.
This upward trend reflects both nations' commitment to strengthening trade relations and fostering mutual economic benefits. In the past four years, over 30 economic reforms have been enacted, including updates to commercial companies law that allow 100 percent foreign ownership. These reforms also cover cooperatives, family businesses, e-commerce, consumer protection, and anti-money laundering.
The forum, organized by the Federation of Saudi Chambers, featured a trade delegation from the UAE, including over 100 leading Emirati companies, and was attended by key officials from both countries.
FSC Chairman Abdulhakim Hamad Al-Khaldi reported that the trade exchange between Saudi Arabia and the UAE has been on a continuous growth trajectory, totaling SR327.506 billion ($87.3 billion) in the last three years alone. “The UAE remains Saudi Arabia's largest Arab trading partner and the sixth largest globally,” he stated.
Al-Khaldi emphasized that the two countries are increasingly diversifying their income sources beyond oil, including investments, tourism, industry, services, transportation, and infrastructure.
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef stressed the importance of leveraging the current momentum in industrial integration, noting a notable increase in Saudi exports to the UAE, with an annual growth rate of over 9 percent from 2018 to 2023. “In the first half of 2024, Saudi exports to the UAE exceeded SR31 billion,” he said.
He also pointed out the potential for enhanced collaboration in the industrial and mining sectors, aiming to share knowledge and technology related to the Fourth Industrial Revolution, including AI and automation.
Al-Khaldi reiterated the promising outlook for bilateral trade, stating, “The numbers reflect a clear vision of vast opportunities across sectors, supporting Saudi Vision 2030 and the UAE’s vision.”
Waleed Al-Orainan, assistant secretary-general of FSC, emphasized the welcoming business environment in Saudi Arabia, noting that around 850 reforms have been made to improve conditions for foreign companies.
With about 629 flights weekly between the two countries, trade volumes continue to thrive. “The trade volume is SR112 billion, with SR62 billion from Saudi exports, which is significant,” Al-Orainan said.
Fayez Al-Shaili, vice president of FSC, highlighted promising sectors, particularly tourism and industry. “Saudi Arabia has immense tourism potential, with historical sites requiring development to attract global visitors,” he explained.
Al-Shaili expressed optimism for future growth, with aspirations to double investment flows to 30 billion dirhams, signaling a strong commitment to strengthening economic ties and expanding opportunities in the Saudi market.