Saudi Arabia’s industrial sector delivered an exceptional performance at the close of 2025, signaling a robust era of economic expansion. The General Authority for Statistics (GASTAT) reported that the Industrial Production Index climbed 8.9% annually in December. Consequently, this growth reinforces the industrial sector’s vital role as a primary pillar within the Kingdom’s rapidly evolving national economy.
Mining and quarrying activities served as the primary engine for this impressive index growth, surging by 13.2% year-on-year. This significant spike stems directly from increased crude oil production, which reached 10.1 million barrels per day during this period. Furthermore, the index remained stable on a monthly basis, as it edged up by 0.3% compared to the previous month.
Manufacturing Sector Shows Resilience
The manufacturing sector also demonstrated remarkable strength by recording an annual growth rate of 3.2% through the end of December. Specifically, chemical product manufacturing emerged as a key growth leader, rising 13.4% as global demand for Saudi exports remained high. Meanwhile, food manufacturing grew by 7.3% year-on-year, reflecting the Kingdom’s successful efforts to enhance its internal food security systems.
On a monthly scale, the manufacturing index maintained positive momentum, as food production alone jumped by a staggering 9.6%. Chemical products also rose by 2.8% compared to November 2025, which further highlights the steady operational capacity of local factories.
Utilities and Seasonal Adjustments
In the utilities sector, water supply and waste management activities posted a robust annual growth of 9.4% by year-end. Conversely, the electricity, gas, and air-conditioning supply segments declined by 2.5% compared with the figures from December 2024. Both sectors saw a monthly contraction, which likely suggests the temporary impact of seasonal weather changes or scheduled plant maintenance.
Overall, these latest figures point toward a healthy and balanced distribution of growth across the Kingdom’s diverse economic pillars. Oil-related activities recorded an annual expansion of 10.1%, while non-oil activities grew by a very steady and reliable 5.8%. Ultimately, the monthly outperformance of non-oil activities underscores the success of the Kingdom’s ongoing and ambitious economic diversification strategy.
