Saudi Arabia’s industrial growth accelerated significantly, driven by a sharp rise in manufacturing output. The Industrial Production Index (IPI) increased by 7.9 percent year on year, reflecting solid momentum in the Kingdom’s non-oil economy. This growth highlights Saudi Arabia’s ongoing efforts to diversify its economic base beyond oil.
According to the General Authority for Statistics, the IPI also rose 1.6 percent compared to the previous month, signaling consistent industrial expansion across multiple sectors. This steady increase supports the Vision 2030 plan, which focuses on reducing oil dependency while boosting other industries.
Several key sectors contributed to the robust industrial growth in Saudi Arabia. Mining and quarrying, including crude oil production, grew by 6 percent annually. Oil output rose to 9.36 million barrels per day from 8.83 million barrels. Meanwhile, manufacturing posted an even stronger gain of 11.1 percent year on year. The production of coke and refined petroleum products increased by 15.3 percent, and chemicals manufacturing jumped 18.7 percent, adding further strength to the industrial growth.
Utilities such as electricity, gas, steam, and air conditioning supply expanded by 5.6 percent, supporting overall industrial development. The water supply, sewerage, and waste management sectors grew by 6.9 percent, underscoring balanced progress across different areas.
Oil-related activities increased by 7.7 percent annually, but non-oil industries led the way with an 8.6 percent rise. On a monthly basis, manufacturing output grew 1.4 percent, driven by higher production of petroleum-based products. Mining and quarrying activity also rose 1.9 percent compared to the previous month, reinforcing the positive trend.
The non-oil private sector continued to show strength as well. Saudi Arabia’s Purchasing Managers’ Index (PMI) reached 56.3, outpacing neighboring Gulf states. This indicates strong private sector growth that complements the broader industrial expansion in the country.
In summary, Saudi Arabia’s industrial growth especially the manufacturing gains demonstrates clear economic progress. These results confirm the Kingdom’s commitment to building a diversified economy and reducing its reliance on oil revenues.
