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Sustained growth of local industries helps Saudi exports jump
By Joe Avancena
Published in The Saudi Gazette on 16 - 08 - 2009

The Saudi government's realistic and pragmatic approach to sustain the growth of local industries has resulted in increasing exports of non-oil products, like butane, according to Adnan A. Al-Naeim, secretary general of the Asharqia Chamber in Eastern Province.
He cited the industrial strategy adopted by the Ministry of Commerce and Industry that aimed to increase the contribution of the industrial sector to the Kingdom's gross domestic product to 20 percent by the year 2020.
“Saudi industries are now manufacturing world-class products, which have competitive advantages in the global market,” he said.
As a result of the government's strategic approach in sustaining the growth of Saudi export, Saudi Arabia is now the largest exporter of butane in the world, Al-Naeim said.
A report by the Information Center of Asharqia Chamber said that the total value of Saudi exports of butane gas reached SR9.3 billion ($2.5 billion) in 2007.
The report said the Saudi export of butane in 2007 amounted to nearly four million tons, representing approximately 15.7 percent of the global export market, which was estimated at about 25.4 million tons in the same year.
The 2007 butane exports represented an increase of 16.3 percent over the previous year.
The largest markets for butane were the Asian non-Arab and non-Islamic countries, which imported 73.6 percent of total Saudi butane exports in 2007, followed by Arab League countries with around 23.1 percent.
Other buyers were EU countries, which accounted for SR169 million worth of butane during the said period.
The Asharqia report noted that Japan was the largest importer of butane in the world in 2007, consuming approximately 16.19 percent of the total value of world's market.
South Korea ranked second accounting for 9.69 percent of butane imports, followed by India with 8.65 percent.


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