Prime Highlights:
- Saudi Arabia’s industrial production grew 8.9% year-on-year in December, driven by mining, manufacturing, and water services.
- Mining and quarrying led the growth with a 13.2% increase, while manufacturing and chemicals production also saw strong gains.
Key Facts:
- The Industrial Production Index (IPI) reached 113.6 in December, up from 104.3 a year earlier, reflecting steady industrial momentum.
- Oil-related activities rose 10.1% YoY and non-oil activities grew 5.8%, showing balanced growth across sectors.
Background
Saudi Arabia’s industrial production increased by 8.9 percent in December compared with the same month last year, driven by strong growth in mining and manufacturing, according to data released by the General Authority for Statistics (GASTAT).
The Industrial Production Index (IPI) rose to 113.6 in December, up from 104.3 a year earlier. The latest figures point to steady momentum in the Kingdom’s industrial sector as Saudi Arabia continues to diversify its economy under the Vision 2030 programme.
In its report, GASTAT said the annual rise was supported by higher activity in mining and quarrying, manufacturing, and water supply and waste management services. Mining and quarrying, the largest component of the index, increased by 13.2 percent year on year. The rise came after Saudi Arabia raised oil production to an average of 10.1 million barrels per day, compared with 8.9 million barrels per day in December last year.
Manufacturing activity expanded by 3.2 percent on an annual basis. Stronger domestic demand and industrial capacity pushed chemicals production up 13.4 percent and food manufacturing up 7.3 percent, driving overall growth.
The sub-index for water supply, sewerage, waste management, and remediation activities rose 9.4 percent compared with last year. In contrast, electricity, gas, steam, and air-conditioning supply activity declined by 2.5 percent over the same period.
On a month-on-month basis, the overall IPI edged down slightly by 0.1 percent compared with November. Mining and quarrying activity rose 0.3 percent, while manufacturing also increased 0.3 percent, supported by a 2.8 percent rise in chemicals output. Food manufacturing jumped 9.6 percent from the previous month.
Oil-related activities increased 10.1 percent year on year, while non-oil activities grew 5.8 percent, highlighting balanced industrial growth.
