Saudi Arabia’s Industrial Production Index Shows Strong Growth in October
Saudi Arabia’s industrial production index surged by 5 percent year on year in October, fueled by robust expansion in key economic sectors, as per official data.
Key Highlights
The index also saw a 0.4 percent increase month on month, reaching 106.9 points, according to figures from the General Authority for Statistics.
The mining and quarrying sub-index, which includes oil production, experienced a slight 0.4 percent annual rise, with oil output climbing to 8.97 million barrels per day from 8.94 million the previous year.
Manufacturing sector exhibited strong growth, with a 12.4 percent year-on-year increase in October, driven mainly by a 32.6 percent surge in the production of coke and refined petroleum products compared to the same period in 2023.
Industrial Diversification and Vision 2030
Saudi Arabia’s industrial production, crucial to Vision 2030, is spearheading economic diversification through manufacturing and non-oil growth.
Other contributors to the sector’s growth included the manufacture of chemicals and chemical products, which rose by 0.6 percent, and food products, which grew by 4.8 percent.
In the utilities sector, the sub-index for electricity, gas, steam, and air conditioning supply increased by 6.2 percent year on year, while water supply and sewerage as well as waste management activities climbed by 8.4 percent over the same period.
Conclusion
The IPI tracks changes in industrial output, utilizing the International Standard Industrial Classification framework to monitor sectors like mining, manufacturing, utilities, and waste management. Saudi Arabia’s commitment to diversifying its industrial base as part of Vision 2030 is evident in the strong growth exhibited across various sectors in October.