RIYADH: Saudi Arabia’s Industrial Production Index recorded a 2.1 percent annual increase in December, driven by a rise in manufacturing activity and waste management services, according to recent data.
Figures from the General Authority for Statistics show that non-oil activities expanded by 4 percent year on year, reflecting growth across most sectors except for electricity and gas supply.
Manufacturing emerged as the main driver of growth, recording a 6.3 percent annual increase, according to the report.
The latest IPI figures reinforce Saudi Arabia’s economic diversification efforts under Vision 2030, as the Kingdom continues to expand its industrial base and attract investment beyond oil.
The growth in manufacturing and non-oil activities highlights the ongoing structural transformation of the Saudi economy, positioning the country as a key player in the global industrial landscape.
The manufacturing sector’s expansion was supported by a strong performance in key industries, particularly the production of coke and refined petroleum products, which surged 9.3 percent year on year.
This refers to the processes of refining crude oil into fuels and chemicals such as gasoline, diesel, and jet fuel, as well as producing coke by heating coal in low-oxygen conditions. Coke, a carbon-rich product, is primarily used in steel production.
The chemical manufacturing sector also contributed to the increase, rising 4.8 percent annually. Similarly, the food industry saw an 8.8 percent annual rise, while the paper products sector grew by 8.7 percent. The electrical devices sector posted a 10.5 percent increase during this period.
Mining and quarrying activity, which holds significant weight in the general index, declined 0.4 percent year on year in December. The sector also recorded a 0.2 percent drop compared to November, reflecting the impact of reduced oil production levels.
Meanwhile, utility-related activities showed mixed performance. The water supply, sewerage, and waste management sector grew 0.8 percent annually but saw a 1.9 percent monthly decline.
The electricity, gas, steam, and air conditioning supply sector registered a 1.9 percent annual decline, with a sharper 15.6 percent monthly drop.
Meanwhile, the oil sector posted an annual increase of 1.3 percent, despite a slight reduction in Saudi Arabia’s oil production, which declined to 8.91 million barrels per day in December compared to 8.94 million bpd a year earlier.
As the Kingdom seeks to reduce its reliance on oil revenues, refining and petrochemical sectors have become key pillars of economic diversification.
The production of refined fuels such as gasoline, diesel, and jet fuel not only supports domestic energy needs but also contributes to the Kingdom’s export capacity, generating significant non-oil revenues.
Additionally, coke production, primarily used in the steel industry, strengthens Saudi Arabia's industrial base, supporting its ambitions in sectors like construction, infrastructure, and manufacturing.
These industries align with Vision 2030, driving economic growth while fostering technological innovation, job creation, and value-added production within the Kingdom’s non-oil economy.
