Saudi Arabia’s Industrial Production Index (IPI) rose by 1 percent in August compared to the same month last year. The increase was driven by a boost in mining and quarrying activities, according to the General Authority for Statistics (GASTAT).
Mining and Manufacturing Surge
Mining and quarrying activities expanded by 0.8 percent year on year, as Saudi oil output reached 8.99 million barrels per day. This is a slight increase from 8.92 million barrels per day recorded a year earlier. This growth pushed the IPI to 105 points, indicating steady industrial expansion.
Saudi Arabia’s manufacturing sector has also shown consistent growth in recent years. This aligns with Vision 2030’s initiative to diversify the economy, reduce reliance on oil, and enhance industrial output.
Chemical and Food Production Drive Growth
The manufacturing sub-index grew by 1.1 percent compared to August last year, supported by chemical and food production. Chemical manufacturing rose by 2.9 percent, while food production saw a significant increase of 12.9 percent. However, the production of coke and refined petroleum products declined by 11.3 percent.
Energy Sector Shows Mixed Results
Electricity, gas, steam, and air conditioning supply rose by 4.1 percent year on year. In contrast, water supply, sewerage, and waste management activities dropped by 0.9 percent. Non-oil activities surged by 7 percent compared to July, while oil-related output fell by 1.4 percent.
Month-to-Month Performance
On a monthly basis, the overall IPI slipped by 0.3 percent from July. Mining and quarrying activities rose by 0.6 percent, but manufacturing output declined by 1.8 percent. Electricity, gas, steam, and air conditioning supply activities increased by 1.7 percent, while water supply and waste management rose by 1 percent. Meanwhile, oil activities dropped by 0.7 percent, while non-oil activities recorded a 0.6 percent increase.
The IPI serves as a crucial economic indicator, tracking fluctuations in industrial output. It is calculated using the industrial production survey and follows the International Standard Industrial Classification to ensure consistency across sectors.
