Saudi Non-Oil Exports to the U.S. Reach Record Highs Post Pandemic

The U.S.-Saudi trade relationship rebounded from the pandemic lows of 2020 and posted record high exchanges of non-oil and non-defense goods, as the total trade volume totaled SAR92.5 billion ($24.7 billion), an increase of 22 percent from 2020, according to a report by the U.S.-Saudi Business Council.

Total Saudi exports reached SAR50.7 billion ($13.5 billion), a rise sharp from 2020’s SAR33.7 billion ($9 billion), while non-oil exports to the U.S. totaled SAR9.1 billion ($2.4 billion), an increase of 71 percent from 2020’s SAR5.3 billion ($1.4 billion). This marked the highest annual level of non-oil exports from Saudi Arabia to the U.S. on record. Oil exports to the U.S. rose 46 percent from SAR28.5 billion ($7.6 billion) to SAR41.6 billion ($11.1 billion). Meanwhile, U.S. exports to Saudi Arabia totaled SAR41.8 billion ($11.1 billion), up 0.3 percent from 2020.

“The U.S.-Saudi trade relationship has endured decades of strong economic ties that have continued to grow beyond oil and defense-related exchanges. Saudi non-oil exports to the U.S. reached the highest annual level on record as efforts to stimulate Saudi Arabia’s diversification plans have started to show signs of progress,” said Albara’a Alwazir, Director of Economic Research at the U.S.-Saudi Business Council.

Fertilizers were the top Saudi non-oil export to the U.S., accounting for SAR2.6 billion ($688 million) or 29 percent of non-oil exports. Saudi exports of urea, a common nitrogen fertilizer, have doubled over the past decade, growing from SAR375 million ($100 million) to SAR750 million ($200 million).

Organic chemicals were the second largest Saudi non-oil export to the U.S. in 2021, accounting for SAR1.9 billion ($505 million) or 21 percent of the non-oil total. Saudi exports of organic chemicals to the U.S. grew 108 percent YoY.

The growth of metal and mining exports from Saudi Arabia continued in 2021 as aluminum bounced back from a small dip in 2020 to set another record high. Saudi exports of ‘Aluminum and Articles Thereof’ to the U.S. totaled SAR1.3 billion ($347 million), growing 24 percent YoY, marking the third largest Saudi non-oil export to the U.S.

U.S. exports to Saudi Arabia were diversified across a range of electrical, mechanical, industrial, agricultural, and pharmaceutical goods.

Motor vehicles were the largest U.S. export to Saudi Arabia in 2021, totaling SAR7.1 billion ($1.9 billion). Approximately 75 percent of motor vehicle exports to Saudi Arabia were consumer vehicles while the remaining 25 percent was comprised of motorized military vehicles, tractors, trailers, and other related parts. U.S. vehicle exports to Saudi Arabia were up 16 percent YoY in 2021.

The second largest export category was ‘Boilers, Machinery, Etc.; Parts,’ which represented 12 percent of U.S. goods exported to Saudi Arabia in 2021. This segment was valued at SAR5.2 billion ($1.4 billion).

The third largest export segment was ‘Aircraft and Parts Thereof,’ which totaled SAR5 billion ($1.3 billion). Civilian-related aircraft goods declined 67 percent while the value of helicopter exports rose 78 percent.

Texas was once again the top U.S. state trading with Saudi Arabia, exporting SAR7.2 billion ($1.9 billion) in merchandise. This was followed by Maryland, which grew by 69 percent YoY with a total value of SAR4.1 billion ($1.1 billion), and California, which exported a total of SAR2.5 billion ($663 million). Exports to Saudi Arabia between these three states combined supported an estimated 17,721 U.S. jobs in 2021.

Louisiana was the top U.S. importer of non-oil goods from Saudi Arabia in 2021 with a total value of SAR1.9 billion (506 million) in fertilizers imports. Indiana was the second largest importer of non-oil Saudi goods in 2021 with a value of SAR993 million ($265 million), 97 percent of which were aluminum products. Texas imported SAR17.8 billion ($4.8 billion) in goods from Saudi Arabia of which 95 percent was crude oil. However, the state still ranked as the third largest importer of non-oil goods, accounting for SAR922 million ($246 million).