Arab News, Sat, Jan 11, 2025 | Rajab 11, 1446
Saudi Industrial Production Index up 3.4% as output expands: GASTAT
Saudi Arabia:
Saudi Arabia’s Industrial Production Index
climbed 3.4 percent year on year in November to reach 103.8, driven by an uptick
in mining and quarrying activities, official data showed.
According to data from the General Authority for
Statistics, the mining and quarrying sub-index recorded a 1.2 percent annual
rise, underpinned by a modest increase in the Kingdom’s oil output, which grew
to 8.93 million barrels per day in November from 8.82 million bpd in the same
month of the previous year.
Manufacturing activities also showed robust
growth, expanding 7.2 percent year on year, driven largely by a 17.6 percent
surge in the manufacture of coke and refined petroleum products. Additionally,
the production of chemicals and chemical products rose 1.6 percent, while food
manufacturing increased by 1.5 percent during the same period.
This comes as Saudi Arabia emphasizes industrial
production under Vision 2030, aiming to diversify its economy and reduce oil
dependence by fostering growth in mining, manufacturing, and other non-oil
sectors.
The report noted a mixed performance in other
sectors. The sub-index for electricity, gas, steam, and air conditioning supply
fell by 2.1 percent year on year, while water supply, sewerage, waste
management, and remediation activities surged 10.5 percent.
The index for oil activities rose 3.8 percent in
November compared to the same month in 2023, reflecting the increased output in
the Kingdom’s mining sector. Meanwhile, non-oil activities grew 2.4 percent,
buoyed by gains across most non-oil economic activities, except for the
electricity and utilities sector, which posted declines.
Despite the annual growth, the IPI fell 2.3
percent in November compared to October 2024. Mining and quarrying activities
declined 0.5 percent month on month, while manufacturing contracted by 3.1
percent over the same period.
The electricity, gas, steam, and air conditioning
supply sub-index posted a steep 21.5 percent monthly drop, and water supply,
sewerage, waste management, and remediation activities decreased by 4.7
percent.
Oil activities fell by 2.1 percent month on month,
while non-oil activities recorded a 2.7 percent decline in November compared to
October.
The mixed performance highlights the volatility in
industrial activity, but the overall annual growth underscores progress in Saudi
Arabia’s ongoing efforts to diversify its economy and reduce dependence on oil
revenues.