Prime Highlights:
- Saudi Arabia’s industrial production rose 10.4% year-on-year in January, supported by stronger mining and oil activity.
- The growth highlights continued momentum in the Kingdom’s industrial sector as it advances diversification under Saudi Vision 2030.
Key Facts:
- The Industrial Production Index (IPI) reached 115 in January, reflecting a sharp rise from the same month last year.
- Mining and quarrying activity increased 13.3%, driven by higher crude oil production.
Background:
Industrial activity in Saudi Arabia recorded strong growth at the start of the year, supported by higher oil production and steady gains in manufacturing, according to new data released by the General Authority for Statistics.
The Kingdom’s Industrial Production Index (IPI) reached 115 in January, rising 10.4 percent from a year earlier.
The mining and quarrying sub-index rose 13.3 percent year-on-year, driven by higher oil output. Saudi Arabia increased crude production to 10.1 million barrels per day in January, compared with 8.9 million barrels per day a year earlier, boosting overall industrial performance.
Manufacturing activity also supported the expansion. The manufacturing sub-index grew 6.8 percent annually, helped by strong output in several industries. Production of chemicals and chemical products increased by 10.6 percent, while the manufacture of coke and refined petroleum products rose 9.1 percent. The food products industry also expanded by 9.1 percent during the same period.
Other sectors also recorded growth. Water supply, sewerage, and waste management activities recorded the fastest growth among major sectors, rising 11.7 percent year-on-year.
Despite the strong yearly performance, industrial production recorded a slight monthly decline of 0.5 percent compared with December 2025. The drop mainly came from a 1.4 percent fall in manufacturing output during the month.
The monthly decline in manufacturing reflected reduced production in some key industries. Output of coke and refined petroleum products fell 1.1 percent, while chemical manufacturing dropped 1.2 percent compared with the previous month.
Data showed that oil-related activities rose 12.5 percent year-on-year, while non-oil industrial activities increased 5.3 percent, reflecting wider growth across the industrial sector.
On a monthly basis, however, both segments recorded slight declines. Oil activities fell 0.1 percent, while non-oil activities declined 1.5 percent from the previous month.
Overall, the data still shows steady growth in Saudi Arabia’s industrial sector as it moves forward with its diversification plan under Saudi Vision 2030.
