Saudi Arabia’s industrial production showed promising growth in February, reflecting positive trends in manufacturing and other key sectors. According to data from the General Authority for Statistics (GASTAT), the Kingdom’s Industrial Production Index (IPI) rose by 0.7% compared to January, reaching a total of 104.8. This indicates steady growth, as the index had stood at 104.1 the previous month.
The increase in industrial output is a significant part of Saudi Arabia’s ongoing economic diversification efforts. Central to Saudi Vision 2030, this growth is part of the broader goal to strengthen the industrial sector. The vision aims to reduce dependence on oil, positioning Saudi Arabia as a regional hub for advanced manufacturing. This includes areas such as petrochemicals, mining, and renewable energy.
A closer look at the figures reveals that manufacturing activity played a major role in this rise. The sub-index for manufacturing increased by 0.9%, supported by a 3.7% growth in food product manufacturing. In addition, coke and refined petroleum products saw a slight increase of 0.1%. Moreover, the sub-index for electricity, gas, steam, and air conditioning supply rose by 5.8%, reflecting further expansion.
Despite these positive figures, some sectors faced challenges. Mining and quarrying activities saw a modest 0.3% increase, but water supply, sewerage, and waste management activities decreased by 0.8%. This highlights the varied growth across different parts of the industrial sector.
On an annual basis, however, the IPI showed a slight decline of 0.2%. This drop was mainly driven by the downturn in mining and quarrying. Notably, Saudi Arabia’s oil production also decreased to 8.95 million barrels per day, compared to 9.01 million barrels per day in February 2024. Nevertheless, the sub-index for manufacturing saw an increase of 0.2% year-on-year. This growth came mainly from the chemicals and food production sectors, which rose by 3.5% and 6.3%, respectively.
The overall growth in industrial output reflects a shift towards a more diversified economy. Saudi Arabia continues to make strides toward realizing the goals set out in Vision 2030. As non-oil activities grow, the country strengthens its position as a regional industrial leader.
