Saudi Arabia's non-oil industrial production up 5.3pc

RIYADH, June 23 (Arab News): Saudi Arabia's non-oil industrial activities posted robust growth of 5.3 per cent in 2024, highlighting the success of the Kingdom's economic diversification efforts under Vision 2030.

The overall Industrial Production Index however declined by 2.3 per cent, driven primarily by a 5.2 per cent contraction in oil-related activities, according to the latest report from the General Authority for Statistics.

Saudi Arabia's growing non-oil industrial output reflects progress in diversifying revenue and jobs beyond oil, a key Vision 2030 goal.

Reforms such as easier licensing, tax incentives, and mega projects are driving growth in manufacturing, logistics, and technology. While oil remains volatile, the expansion is showing early success in the private sector, driven by growth in foreign direct investment.

During the Davos Conference in January, Saudi Minister of Economy and Planning Faisal Al-Ibrahim said that the non-oil economy is expected to grow by 4.8 per cent this year.

The latest figures from GASTAT show that manufacturing played a pivotal role in driving growth in 2024, recording a 4.7 per cent annual increase. Food production expanded by 6.2 per cent, while the manufacture of chemicals and chemical products,, and coke and refined petroleum goods increased by 2.8 per cent.

The mining and quarrying sector, which includes oil extraction, saw a decline of 6.8 per cent in 2024.