23/06/2026 02:12 AST

Saudi Arabia's Industrial Production Index expanded 5.1 percent in 2025 from a year earlier, driven by growth across mining, manufacturing and utility sectors, according to official data.

The Kingdom's IPI reached 110.4 points in 2025, up from 105.1 in 2024 and 107.5 in 2023, the General Authority for Statistics said in its latest report.

The figures highlight continued momentum in Saudi Arabia's industrial sector as the Kingdom pursues economic diversification under its Vision 2030 agenda.

"In 2025, the annual IPI increased by 5.1 percent compared to 2024, driven by the increase in mining and quarrying activities, manufacturing activities, electricity, gas, steam, and air conditioning supply activities, and water supply; sewerage, waste management and remediation activities," said GASTAT.

The authority revealed that the Kingdom's mining and quarrying activities recorded a rise of 5.8 percent year on year in 2025, while manufacturing activity increased by 3.9 percent.

The manufacturing growth was underpinned by strong performance in key industries. Output of coke and refined petroleum products rose 3.7 percent, while production of chemicals and chemical products increased 9.3 percent, and food products manufacturing grew 2.9 percent.

The report further said that the annual IPI for electricity, gas, steam, and air conditioning supply activities increased by 5.2 percent, while water supply, sewerage, waste management, and remediation activities rose by 10 percent.

Overall, the annual IPI for oil activities increased by 5.4 percent in 2025, while the index for non-oil activities rose by 4.3 percent, underscoring continued growth in both segments of the industrial economy.

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities, and waste management sectors.

It is derived from the Industrial Production Survey conducted on a sample of establishments in the targeted sectors. The data follows the International Standard Industrial Classification of Economic Activities, known as ISIC4.

The industrial expansion comes as Saudi Arabia's broader economy continues to grow. Earlier this month, GASTAT reported that the Kingdom's gross domestic product increased 3 percent year on year in the first quarter of 2026.

The report revealed that both oil and non-oil activities in the Kingdom saw annual expansion of 2.9 percent in the first quarter, while government activities rose by 1.5 percent.

Non-oil activities emerged as the primary driver of overall GDP growth, contributing 1.7 percentage points.


Arab News

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