Prime Highlights:

Industrial Production Index increased by 3.4% year on year in November 2024.

Mining and quarrying saw a 1.2% annual rise, driven by modest growth in oil output.

Key Background:

Saudi Arabia’s Industrial Production Index (IPI) saw a year-on-year increase of 3.4% in November, reaching 103.8, according to data from the General Authority for Statistics (GASTAT). The growth was primarily driven by notable increases in mining and quarrying, alongside strong performance in the manufacturing sector.

The mining and quarrying sub-index rose by 1.2% year on year, attributed to a slight uptick in the Kingdom’s oil production. Saudi Arabia’s oil output in November reached 8.93 million barrels per day, a modest rise from 8.82 million bpd in November 2023.

The manufacturing sector displayed robust expansion, growing 7.2% year on year. Key contributors to this growth included a 17.6% increase in the production of coke and refined petroleum products. Other sectors also showed positive performance, with chemicals and chemical products seeing a 1.6% rise, while food manufacturing grew by 1.5%. This growth aligns with Saudi Arabia’s Vision 2030, which seeks to diversify the economy away from oil dependence and strengthen non-oil sectors like mining and manufacturing.

However, the report indicated mixed performance across other sectors. The sub-index for electricity, gas, steam, and air conditioning supply saw a 2.1% decline, while water supply, sewerage, and waste management surged by 10.5%. The oil-related sub-index grew by 3.8%, reflecting higher output in the mining sector, while non-oil activities grew by 2.4%.

Despite the strong annual growth, industrial production showed a monthly decline of 2.3% in November compared to October, reflecting volatility in certain sectors, particularly manufacturing and utilities. This data highlights the ongoing efforts by Saudi Arabia to enhance its industrial production and achieve sustainable economic growth under its Vision 2030 agenda.