Muscat – Oman’s non-oil exports declined by nearly 12% year-on-year in the first eight months of 2024, according to data from the National Centre for Statistics and Information (NCSI). The value of non-oil shipments fell to RO4.039bn, down from RO4.585bn in the same period last year.

The drop in non-oil exports was largely driven by a sharp fall in shipments to two of Oman’s key markets: Saudi Arabia and India.

Exports to Saudi Arabia, the sultanate’s leading trading partner in the Gulf, fell 19.2% to RO534mn from RO661mn in 2023. Likewise, exports to India saw a decline of 14.2%, totalling RO385mn compared to RO449mn during the same period last year.

Exports to the United States also posted a modest decline of 1.7%, dropping to RO279mn from RO284mn in 2023.

However, exports to the United Arab Emirates recorded robust growth. The UAE remained the top destination for Oman’s non-oil exports, with shipments rising by 11.6% to RO638mn, up from RO571mn in the first eight months of 2023.

In a noteworthy shift, South Korea emerged as the third-largest recipient of Omani non-oil products. Exports to South Korea surged by more than 14 times, reaching RO487mn during the January-August period of 2024, compared to just RO34mn in the same period last year.

Conversely, exports to other countries combined plummeted by nearly 34%, totalling RO1.715bn in the first eight months of 2024, down from RO2.586bn in the same period of 2023.

Minerals and Chemicals

The decline in non-oil exports was notably influenced by a sharp reduction in mineral product exports, which represent a significant portion of Oman’s non-oil exports. Shipments of mineral products fell by 20.8% to RO1.197bn in the first eight months of 2024, down from RO1.511bn in the same period last year.

Exports of chemical products also saw a steep decline, plummeting by 25.7% to RO509mn, from RO685mn in the first eight months of 2023. By contrast, exports of base metals and related products saw a slight increase of 1.4%, reaching RO883mn, up from RO871mn in the previous year.

Re-exports drive growth in trade

In a more positive development, Oman’s re-exports grew by 14% year-on-year, reaching RO1.131bn in the first eight months of 2024, up from RO992mn during the same period last year. This growth was primarily driven by increased demand from regional and international markets, including the UAE, Iran, and China.

Re-exports to the UAE rose by 17.7%, totalling RO410mn, while shipments to Iran surged by 74%, reaching RO241mn compared to RO138mn in 2023. Oman’s re-exports to China also saw a dramatic increase, climbing by 349% to RO58mn, up from RO13mn last year.

However, re-exports to Kuwait fell by 21.8%, dropping to RO41mn from RO52mn in the corresponding period of 2023. Re-exports to other countries combined also declined by 14.4%, totalling RO335mn in 2024.

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