RIYADH: Saudi Arabia’s industrial production remained stable in September, registering a slight year-on-year decrease of 0.3 percent, primarily due to a modest decline in manufacturing output, according to official data.
The General Authority for Statistics (GASTAT) reported that the Kingdom’s manufacturing sector decreased by 0.5 percent in September, resulting in an Industrial Production Index (IPI) of 105.6 points. This decline was largely driven by a 12.3 percent drop in the production of coke and refined petroleum products.
Conversely, the manufacture of chemicals and chemical products saw a 2 percent growth, while food product manufacturing experienced a 12.3 percent increase.
The growth in Saudi Arabia’s manufacturing sector is vital for achieving the objectives set forth in Vision 2030, as the Kingdom continues to diversify its economy and lessen its reliance on crude oil revenues.
GASTAT noted that the sub-index for mining and quarrying activities remained unchanged in September compared to the same month in 2023.
“Oil production in Saudi Arabia reached 8.97 million barrels per day in September 2024, maintaining the same level as recorded in the previous year,” GASTAT stated.
In an effort to stabilize the market, Saudi Arabia, in coordination with OPEC+, reduced its oil output by 500,000 barrels per day in April 2023. This reduction has been extended until December 2024.
The IPI is an economic indicator that reflects changes in the volume of industrial output and is calculated based on the industrial production survey.
The report indicated that the sub-index for electricity, gas, steam, and air conditioning supply activities recorded a 4.9 percent annual decrease in September, while the sub-index for water supply, sewerage, and waste management activities increased by 2.5 percent during the same period.
GASTAT revealed that the index for oil activities decreased by 2.5 percent in September compared to the same month the previous year.
On a positive note, the index for non-oil activities increased by 5 percent year on year in September, supported by growth in all non-oil economic activities except for electricity, gas, steam, and air conditioning supply.
Compared to August, Saudi Arabia’s IPI decreased by 1.2 percent.
The Kingdom’s sub-index for mining and quarrying activities decreased by 0.2 percent in September compared to the previous month, while manufacturing activities saw a decline of 2.6 percent.
Month-on-month, the index for oil activities decreased by 1.6 percent, and the index for non-oil activities declined by 0.3 percent.
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