Saudi Arabia’s Industrial Production Index Sees Robust Growth in October, Driven by Key Sectors

RIYADH: Saudi Arabia’s industrial production index (IPI) rose by 5 percent year on year in October, reflecting strong growth across vital economic sectors, according to official data from the General Authority for Statistics.

The index also showed a modest monthly increase, edging up 0.4 percent from September to reach 106.9 points, marking continued positive momentum in the Kingdom’s industrial activities.

The mining and quarrying sub-index, which includes oil production, saw a slight 0.4 percent annual increase. Oil output rose to 8.97 million barrels per day, up from 8.94 million barrels per day a year earlier. Despite this annual increase, the sector’s month-on-month performance remained stable, with no significant changes recorded between September and October.

The manufacturing sector demonstrated particularly strong performance, with a notable 12.4 percent year-on-year rise in October. A key driver of this growth was a 32.6 percent surge in the production of coke and refined petroleum products, compared to the same period in 2023. The manufacturing sector’s expansion aligns with Saudi Arabia’s broader economic diversification goals under Vision 2030, which seeks to reduce reliance on oil by fostering growth in non-oil industries.

Other contributing factors to the sector’s growth included a 0.6 percent increase in the manufacture of chemicals and chemical products, and a 4.8 percent rise in food product manufacturing. On a month-to-month basis, the manufacturing sub-index grew by 1.1 percent, with the production of coke and refined petroleum products increasing by 2.7 percent and chemicals and chemical products seeing a modest 0.2 percent uptick.

Other manufacturing activities reported varied growth rates. The production of non-metallic mineral products rose by 1.8 percent year-on-year and 0.8 percent month-on-month. Basic metals manufacturing increased by 4.3 percent annually and 1 percent compared to September. Paper and paper products experienced an 11 percent annual increase and a 1.1 percent monthly rise, while electrical devices saw a 9.2 percent year-on-year growth and a 0.1 percent month-on-month increase. Furniture manufacturing posted a strong 14.4 percent annual rise and 0.5 percent monthly increase.

In the utilities sector, the sub-index for electricity, gas, steam, and air conditioning supply climbed by 6.2 percent year on year, while the water supply, sewerage, and waste management sub-index rose by 8.4 percent over the same period. Both sectors also posted positive monthly growth, with electricity-related sub-index increasing by 0.9 percent and water supply and waste management growing by 1.4 percent from September.

Oil-related activities expanded by 5.4 percent year on year and 0.5 percent month on month in October, while non-oil activities demonstrated strong growth as well, rising by 4 percent annually and 0.3 percent monthly. This reflects Saudi Arabia’s ongoing efforts to diversify its industrial base as part of the Vision 2030 initiative.

The IPI, which tracks changes in industrial output, monitors key sectors such as mining, manufacturing, utilities, and waste management, providing an important snapshot of the Kingdom’s industrial performance and economic diversification progress.