Saudi Arabia’s industrial production index rises 1%: GASTAT 

IPI is an economic indicator reflecting relative changes in the volume of industrial output, calculated based on the production survey. Shutterstock
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Updated 09 April 2024
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Saudi Arabia’s industrial production index rises 1%: GASTAT 

RIYADH: Saudi Arabia’s Industrial Production Index edged up 1 percent in February, compared to the previous month, driven by a rise in manufacturing activities. 

According to the General Authority for Statistics, the Kingdom’s sub-index of manufacturing activity indicated a 1.2 percent month-on-month increase in the second month of the year. 

The uptick in manufacturing activities was supported by a rise in the production of coke and refined petroleum products, which increased by 0.4 percent. 

The sub-index for mining and quarrying activity marginally increased by 0.6 percent month-on-month in February. 

Similarly, electricity, gas, steam, and air conditioning supply increased by 7.6 percent during the same period compared to January. 

The report revealed that the sub-index for water supply, sewerage, waste management, and remediation activities also rose by 2.1 percent month-on-month in February. 

According to GASTAT, IPI is an economic indicator reflecting relative changes in the volume of industrial output, calculated based on the production survey. 

However, Saudi Arabia’s IPI decreased by 7.7 percent in February compared to the same month of the previous year, driven by a drop in mining and quarrying activity. 

GASTAT revealed that the sub-index for mining and quarrying activity decreased by 13.8 percent in February compared to the same month in 2023, as Saudi Arabia reduced its oil production to 9 million barrels per day. 

“Given the relative weights of the mining and quarrying activity which reached 61.4 percent, the trend of the industrial production in the mining and quarrying sector dominates the trend in the general IPI,” stated the authority in the report. 

The decline in mining and quarrying activities was a result of the Kingdom’s decision to decrease crude output, in alignment with an agreement by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+. 

In April 2023, Saudi Arabia decided to reduce oil output by 500,000 bpd, which is now extended until the end of December 2024. 

On a positive note, manufacturing activities in the Kingdom rose by 2.1 percent in February compared to the same period of the previous year, driven by an increase in the production of non-metallic products. 

Similarly, electricity, gas, steam, and air conditioning activities, along with the sub-index for water supply, sewerage, waste management, and remediation, recorded an annual increase of 7.7 percent and 8.5 percent, respectively. However, due to the low weight of these activities, they did not have a significant impact on the index. 


How KAUST is transforming waste into wealth

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How KAUST is transforming waste into wealth

  • Researchers target $275m market with waste-to-value algae innovation

RIYADH: Turning food waste into a valuable industrial product may sound improbable, but scientists at King Abdullah University of Science and Technology are proving it is possible — using algae that has existed for millions of years. 

Last month, researchers at the university unveiled a sustainable method that harnesses an ancient red microalga to reduce food waste in the Kingdom while producing a high-demand natural pigment.

The study was led by bioengineering student Mauricio Masson, with support from Michael Fox, assistant professor of marine science, alongside researchers from KAUST and the Arizona Center for Algae Technology and Innovation. The international team included Kyle Lauersen, KAUST associate professor and lead author of the study.

Scientists at King Abdullah University of Science and Technology (KAUST) developed a sustainable method to use an ancient type of algae while reducing food waste in the kingdom. (Supplied)

The research highlights a “sustainable bioprocessing” approach, demonstrating how an aquatic plant can convert chocolate factory waste into C-phycocyanin — a blue pigment with a global market expected to reach $275 million over the next four years.

“Our research focused on an extremophilic red alga that can thrive in harsh conditions and efficiently consume sugars and nutrients found in food waste streams,” said Lauersen.

Lauersen is an associate professor and chair of the bioscience and bioengineering programs in the Biological and Environmental Sciences and Engineering Division at KAUST. He explained that a key objective of the study was to show that food waste — often discarded or sent to landfills — can be repurposed as a feedstock for producing high-value compounds, including natural pigments and proteins, through algae-based bioprocesses.

“Our main goal was to develop an environmentally friendly approach to turn waste into useful products that have the potential to be scaled,” Lauersen told Arab News.

FASTFACT

Did you know?

• By 2030, the global market for C-phycocyanin is projected to exceed $275 million, reflecting growing demand across food, health, and industrial sectors.

• C-phycocyanin has demonstrated potential benefits in antioxidation, inflammation, cancer research, antimicrobial activity, neurodegeneration, diabetes management, and wound healing.

• As a natural pigment, C-phycocyanin offers a healthier alternative to synthetic food colorants and is approved by the US FDA for use in food products.

He added: “Algae are especially well suited for this because they grow quickly, require relatively few resources, and can metabolize a wide range of organic compounds.”

The red microalga Galdieria yellowstonensis feeds on chocolate waste rich in residual sugars, producing a protein-dense biomass that contains C-phycocyanin, according to KAUST. The pigment is widely used as a natural food coloring — found in products such as ice cream and blue-colored beverages — as well as in cosmetics and pharmaceuticals.

Beyond the study’s original goals, researchers also discovered that elevated levels of carbon dioxide significantly enhance algae growth, even though CO₂ is typically considered a byproduct of microbial sugar consumption.

Another major outcome of the research is its potential to reduce land pollution by transforming food waste into a nutrient source for algae, offering a sustainable alternative to disposal. 

Galdieria yellowstonensis feeds on chocolate waste containing residual sugar, producing a protein-packed biomass that includes C-phycocyanin. (Supplied)

KAUST believes the findings could positively impact Saudi Arabia’s economy by helping food manufacturers lower production costs while addressing environmental concerns.

“The species we studied can grow on waste streams that are unsuitable for conventional crops or microorganisms,” said Lauersen.

“This makes algae an attractive platform for circular economy solutions, where waste is transformed directly into valuable materials rather than being treated as a disposal problem.”

The research effort is ongoing. Scientists at KAUST are currently collecting chocolate waste locally and plan to scale up the process using other industrial waste streams available across the Kingdom. The initiative aims to support companies in transitioning toward a circular carbon economy while contributing to Saudi Arabia’s green agenda.

“Food waste is a major global challenge, contributing to greenhouse gas emissions, resource inefficiency, and environmental degradation,” said Lauersen.

“By recycling waste into useful products, we can reduce pressure on landfills, lower emissions, and make better use of existing resources.”

“These types of solutions are essential as industries worldwide face growing demands to become more sustainable and climate resilient, especially in the Middle East, which relies on heavily on imports.”