Riyadh, Saudi Arabia — Non-oil industrial production in Saudi Arabia rose by 5.3% at the end of 2024, reflecting higher output across most non-oil economic sectors, according to the Saudi General Authority for Statistics.
Despite this growth, the annual Industrial Production Index (IPI) recorded a 2.3% decline, mainly due to reduced oil-related industrial activity, which dropped by 5.2% compared to 2023.
Saudi Industrial Production Index Shows Mixed Sector Performance
The report revealed that the mining and quarrying sector experienced a significant contraction of 6.8%. Given the sector’s size and oil dependency, this decline weighed heavily on the overall IPI.
In contrast, the manufacturing sector showed strong resilience, with its index growing by 4.7%. The electricity, gas, steam, and air conditioning supply index increased by 3.5%. In contrast, water supply, sewerage, waste management, and remediation activities recorded a 1.6% rise.
These results underline the Kingdom’s ongoing efforts to stimulate industrial diversification in line with Vision 2030 economic goals.
Non-oil Industrial Production Saudi Arabia: Diversification Efforts Gain Momentum
The growth in non-oil industrial production in Saudi Arabia reflects the impact of structural reforms to reduce dependence on oil revenues. According to officials, these improvements align with the broader strategy to boost non-oil sector performance and strengthen the manufacturing base.
The Industrial Production Index (IPI) is a vital economic indicator that tracks relative changes in industrial output across key sectors. Data for the index is collected through surveys of industrial establishments operating in mining and quarrying, manufacturing, electricity and gas supply, and water and waste management.
While the oil-linked industries faced setbacks, non-oil sectors continue to drive moderate, consistent economic diversification.
The Saudi Standard’s View: Non-oil Industry Signals Steady Economic Transformation
The latest data on non-oil industrial production in Saudi Arabia reflects the Kingdom’s steady advancement toward achieving Vision 2030 objectives. A 5.3% growth in non-oil industrial output demonstrates the effectiveness of policies designed to strengthen national industries and diversify the economy.
While the overall Industrial Production Index (IPI) saw a modest decline, this reflects normal fluctuations within global energy markets and underscores the importance of Saudi Arabia’s commitment to expanding non-oil sectors.
Manufacturing, utilities, and waste management sectors continue to show positive momentum, reinforcing the Kingdom’s readiness to build a resilient, diversified economy. Saudi Arabia’s leadership remains focused on enhancing industrial performance, creating high-quality jobs, and supporting sustainable growth across all sectors.
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