Riyadh, Saudi Arabia — Saudi Arabia’s Industrial Production Index (IPI) rose by 1.5% in May 2025 compared to May 2024, reflecting modest but broad-based growth across key sectors. According to preliminary data from the General Authority for Statistics, the gains were mainly driven by mining, manufacturing, and utility-related activities.
Saudi Industrial Production Index May 2025 Gains Led by Extractives and Manufacturing
The mining and quarrying sub-index increased by 2.1% year-over-year, supported by higher oil output. Oil production in May reached 9.18 million barrels per day, up from 8.99 million in May 2024. Compared to April 2025, the sub-index rose by 2.0%, showing stable monthly growth.
Manufacturing expanded by 0.9% year-on-year. Within the sector, chemicals saw a 14.0% jump in output, while food production rose by 3.2%. Monthly growth in manufacturing stood at 2.3%, driven by stronger petroleum refining and chemical production.
Water supply, sewage, and waste management activities grew by 15.5% compared to May 2024. Meanwhile, electricity and gas supply contracted 7.7% year-on-year but rebounded 17.6% from April, likely reflecting seasonal demand shifts.
Saudi Non-Oil Activity Up 3.8% as Vision 2030 Diversification Continues
Non-oil industrial activity expanded by 3.8% compared to a year earlier. The non-oil index rose 3.9% month-on-month. This contrasts with oil-related activity, which grew just 0.5% year-over-year and 2.0% monthly.
These figures align with Saudi Arabia’s ongoing effort to diversify its economy under Vision 2030. While extractives continue to underpin the IPI, gains in manufacturing and utility services show that non-oil growth is gathering pace.
The 2.5% overall monthly increase in the IPI suggests steady recovery momentum, especially in sectors like chemicals, food processing, and waste management.
The Saudi Standard’s View: Balanced Industrial Expansion Signals Structural Resilience
Saudi Arabia’s May IPI data reveals more than sector-specific growth—it signals balance. Mining remains the engine, but the contribution of chemicals, food production, and waste services confirms traction in non-oil diversification.
As seasonal dynamics affect energy use and upstream production stabilizes, downstream and value-added sectors are stepping in. This is critical as the Kingdom aims to hedge against oil volatility and scale high-margin industries.
The data points to a maturing industrial profile. Incremental gains across multiple sectors show that Saudi Arabia is managing its industrial base with long-term strategy, not just short-term response.
