RIYADH, Aug 10 (Arab News): Saudi Arabia's industrial production climbed 7.9 per cent year on year to 111.9 in June, driven by a sharp rebound in manufacturing and higher crude output, official data showed.
Figures from the General Authority for Statistics also revealed a 1.6 per cent month-on-month rise in the Industrial Production Index, underscoring momentum in the Kingdom's non-oil economy.
The IPI, which measures changes in industrial output across mining, manufacturing, utilities, and waste management, is a key indicator for Saudi Arabia's Vision 2030 diversification drive.
The June IPI figure, reflecting continued growth in the manufacturing sector, affirms Saudi Arabia's progress in its economic diversification efforts aimed at reducing its decades-long reliance on crude revenues.
In its latest report, GASTAT stated: "Preliminary results indicate a 7.9 per cent increase in the IPI in June 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity, electricity, gas, steam, and air conditioning supply activity and water supply, sewerage and waste management and remediation activities."
Mining and quarrying - which include crude oil production - increased 6 per cent annually as Saudi output rose to 9.36 million barrels per day, up from 8.83 million bpd in June 2024.
The authority revealed that the sub-index for manufacturing activities rose 11.1 per cent year on year in June, supported by an increase in the manufacture of coke and refined petroleum products, which jumped 15.3 per cent, and the production of chemicals and chemical products, which rose 18.7 per cent.
In May, a separate report released by GASTAT revealed that the Kingdom's gross domestic product grew 2.7 per cent year on year in the first quarter, driven by strong non-oil activity.
Commenting on the GDP figures, Saudi Arabia's Minister of Economy and Planning, Faisal Al-Ibrahim, who also chairs GASTAT's board, said at the time that the contribution of non-oil activities to the Kingdom's economic output reached 53.2 per cent - an increase of 5.7 per cent from previous estimates. The sub-index of electricity, gas, steam, and air-conditioning supply activity increased 5.6 per cent in June, compared to the same month in 2024.
The authority added that the sub-index of water supply, sewerage, waste management, and remediation operations increased 6.9 per cent year on year in June.
Overall, the index of oil activities advanced 7.7 per cent year on year in June, while the index of non-oil activities rose 8.6 per cent during the same period.
