Once again…Crisis and potential chances

By: Albadr Foudeh

Crisis often comes with chances even in industrial sector. I wrote before about Covid-19 and opportunities arose from it such as face masks, sanitizers packing industries which have kept growth.

Nowadays, the world sees Russian-Ukrainian war crisis. It has become a reality, so the world has to deal with, and then look for trade and industrial chances within it.

On commodities, Ukraine’s exports rose to SR 185 billion in 2020 of which 50% were directed to Europe alone, including firstly iron, machines, equipment, durable goods, various agricultural products and others.

Ukraine’s agricultural exports were at first to global markets in general; followed by iron, machines, equipment, plastics, fertilizers, cook oil, iron ore, wood, cables, jet engines, meat, dairies, rocket engines, weapons, ammonia gas, train cars, shoes, fluid pumps, leather/fur and honey. On services, the eastern European country exports energy and information technology.

For comparison between what Ukraine exports with what Saudi Arabia produces, we see lots of potentials in different industries such as iron, machines, equipment, plastics, dairies, fertilizers, cook oil, cables, meat, fluid pumps, leathers  and honey.

It is known that markets don’t have patience (or waiting for solutions); it submits to supply and demand powers, hence, Saudi factories have chances to fulfill markets’ needs with the above mentioned products particularly but not exclusively.

Saudi factories should seize potential opportunities by recognizing Ukraine’s importers, what is needed of commodities and launching marketing campaigns and get a share of the market. To know this information, any factory can search the UN database or next websites: https://comtrade.un.org/ or https://www.intracen.org/

The aforementioned exports of Ukraine to Europe are just examples but not limited to animal and agricultural plentiful products especially in European markets. But I stressed on other products exported from Ukraine to its European neighbors to explore potential chances that should be targeted by Saudi exporters in the near term. Even if the crisis recedes, it will give us a lesson that we have to diversify supply sources (imports) to keep supply chains safe and sustainable regardless costs (in affordable frame), so, new markets and exporting targets need to be looked for.

Other arising chances from the crisis could be alternative products in domestic market if available, for example, barely for feeds manufacturing to meet the local market needs. In this regard, trying to win a market share and raising productivity of feed factories shall achieve partial and macroeconomic targets/balance of payment. Saudi Ministry of Environment, Water & Agriculture has always taken the available chances by renewing awareness campaigns for marketing and promoting manufactured animal feeds use instead of barely. Also, Ministry of Industry and Mineral Resources calls on animal feed manufacturers to seize any looming chance.

Finally, we hope peace and security shall prevail, and this crisis shall end as soon as possible, but we should take the looming opportunities because the market will not wait too long before it submits to supply and demand powers.