Saudi Arabia’s economy showed positive signs in November, with the Industrial Production Index (IPI) climbing 3.4% year-on-year, reaching 103.8 point. A boost in mining and quarrying activities primarily drove this growth.
Mining and Manufacturing Sector Drive Growth
According to the General Authority for Statistics (GASTAT), the mining and quarrying sector experienced a 1.2% annual increase. This was supported by a slight rise in the Kingdom’s oil output, which reached 8.93 million barrels per day in November, up from 8.82 million barrels per day in the same month of the previous year.
The manufacturing sector also demonstrated strong growth, expanding 7.2% year-on-year. This was largely attributed to a significant 17.6% surge in the production of coke and refined petroleum products. Furthermore, the production of chemicals and chemical products increased by 1.6%, while food manufacturing saw a 1.5% growth during the same period.
Vision 2030 Drives Economic Diversification
This positive industrial performance aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and reduce reliance on oil revenue. By fostering growth in mining, manufacturing, and other non-oil sectors, the Kingdom seeks to build a more sustainable and resilient economy.
The report also highlighted a mixed performance in other sectors. The sub-index for electricity, gas, steam, and air conditioning supply declined by 2.1% year-on-year. However, water supply, sewerage, waste management, and remediation activities surged 10.5%.
Oil and Non-Oil Activities Show Growth
The index for oil activities rose 3.8% in November compared to the same month in 2023, reflecting the increased output in the mining sector. Meanwhile, non-oil activities grew 2.4%, supported by gains across most non-oil economic activities, except for the electricity and utilities sector, which experienced declines.
Despite the annual growth, the IPI fell 2.3% in November compared to October 2024. Mining and quarrying activities declined 0.5% month-on-month, while manufacturing contracted by 3.1% over the same period.
The electricity, gas, steam, and air conditioning supply sub-index experienced a sharp 21.5% monthly drop. Additionally, water supply, sewerage, waste management, and remediation activities decreased by 4.7%.
Oil activities fell by 2.1% month-on-month, while non-oil activities recorded a 2.7% decline in November compared to October.
Although the mixed performance highlights the volatility in industrial activity, the overall annual growth underscores Saudi Arabia’s progress in diversifying its economy and reducing dependence on oil revenues.
