RIYADH: Saudi Arabia’s Industrial Production Index (IPI) rose by 1 percent in August compared to the same month last year, fueled by an increase in mining and quarrying activities, according to official data.
The General Authority for Statistics (GASTAT) reported that mining and quarrying expanded by 0.8 percent year-on-year, as Saudi oil output increased to 8.99 million barrels per day (bpd), up from 8.92 million bpd a year earlier.
This growth pushed the IPI to 105 points for the month, indicating steady industrial expansion.
The Kingdom’s manufacturing sector has been consistently growing in recent years, driven by Vision 2030’s efforts to diversify the economy and boost industrial output, thereby reducing dependence on oil revenues.
This aligns with broader economic objectives aimed at establishing a sustainable, non-oil-based growth model.
“Compared to August of the previous year, the sub-index of manufacturing activity increased by 1.1 percent, supported by an increase in the manufacture of chemicals and chemical products, and manufacture of food products which increased by 2.9 percent and 12.9 percent, respectively,” GASTAT stated.
Meanwhile, the manufacture of coke and refined petroleum products decreased by 11.3 percent.
The report also noted that electricity, gas, steam, and air conditioning supply rose by 4.1 percent year-on-year, while water supply, sewerage, and waste management activities fell by 0.9 percent.
GASTAT highlighted that non-oil activities surged by 7 percent compared to July, while oil-related output dropped by 1.4 percent.
On a month-to-month basis, the overall IPI slipped by 0.3 percent from July. The sub-index for mining and quarrying activity increased by 0.6 percent, while manufacturing output fell by 1.8 percent.
GASTAT further noted that electricity, gas, steam, and air conditioning supply activities increased by 1.7 percent month-on-month, while water supply, sewerage, waste management, and remediation activities rose by 1 percent.
However, the index for oil activities dropped by 0.7 percent in August compared to the previous month, while non-oil activities recorded a 0.6 percent increase.
The IPI is an economic indicator that measures fluctuations in industrial output, calculated through the industrial production survey. It follows the International Standard Industrial Classification of All Economic Activities to ensure consistency and comparability across sectors.
