RIYADH: Saudi Arabia’s Industrial Production Index saw a modest rise in February, driven by stronger manufacturing activity as the Kingdom pushes ahead with its economic diversification agenda.
The indicator — which reflects changes in the volume of industrial output — increased 0.7 percent month on month, reaching 104.8, up from 104.1 in January, according to preliminary data released by the General Authority for Statistics.
Strengthening the industrial sector is central to Saudi Arabia’s Vision 2030, with the National Industrial Development and Logistics Program aiming to reduce reliance on oil by positioning the Kingdom as a regional hub for advanced manufacturing in petrochemicals, mining, and renewable energy.
“On a monthly basis, the sub-index of manufacturing activity showed an increase of 0.9 percent, supported by the rise in the activity of the manufacture of coke and refined petroleum products, which increased by 0.1 percent, and the manufacture of food products which increased by 3.7 percent,” stated GASTAT.
According to GASTAT, the sub-index for electricity, gas, steam, and air conditioning supply activities rose by 5.8 percent in February compared to the previous month.
Mining and quarrying activities also increased by 0.3 percent month on month, while water supply, sewerage, and waste management and remediation activities declined by 0.8 percent.
Compared to January, the index for oil activities rose by 0.3 percent, while the index for non-oil activities increased by 1.5 percent.
Annual comparison
On a year-on-year basis, Saudi Arabia’s IPI fell by 0.2 percent in February, driven by a decline in mining and quarrying activity, which fell by 0.7 percent.
The Kingdom’s oil production declined to 8.95 million barrels per day in February, down from 9.01 million bpd a year earlier.
GASTAT noted: “Compared to February of the previous year, the sub-index of manufacturing activity increased by 0.2 percent, supported by the increase in the manufacture of chemicals and chemical products, which increased by 3.5 percent, and the manufacture of food products, which increased by 6.3 percent.”
Electricity, gas, steam, and air conditioning supply activities rose by 1.1 percent year on year in February, while water supply, sewerage, and waste management and remediation activities surged by 13.1 percent.
The index for oil activities declined by 1.6 percent year on year, while the non-oil activities index climbed 3.2 percent over the same period.
