Saudi Arabia’s Industrial Output Surges 7.9% in June on Manufacturing and Oil Gains

RIYADH: Saudi Arabia’s industrial production rose 7.9 percent year-on-year in June to 111.9 points, driven by strong manufacturing growth and higher crude oil output, according to official data from the General Authority for Statistics (GASTAT).

The Industrial Production Index (IPI) also climbed 1.6 percent month-on-month, underscoring continued momentum in the Kingdom’s non-oil economy under the Vision 2030 diversification strategy.

Mining and quarrying, which includes crude oil production, increased 6 percent year-on-year, with Saudi oil output rising to 9.36 million barrels per day (bpd) from 8.83 million bpd in June 2024. Manufacturing activity surged 11.1 percent, led by a 15.3 percent jump in coke and refined petroleum products and an 18.7 percent rise in chemicals and chemical products.

Electricity, gas, steam, and air-conditioning supply activity increased 5.6 percent, while water supply, sewerage, waste management, and remediation services rose 6.9 percent compared to the same month last year.

Overall, the index for oil activities grew 7.7 percent annually in June, and non-oil activities expanded 8.6 percent. On a monthly basis, oil activities rose 1.9 percent, and non-oil activities gained 1.1 percent.

In May, GASTAT reported that Saudi Arabia’s GDP grew 2.7 percent year-on-year in the first quarter of 2025, driven by robust non-oil activity, which accounted for 53.2 percent of economic output, a 5.7 percent increase from earlier estimates.

S&P Global data showed that the Kingdom’s non-oil private sector remained strong in July, with its Purchasing Managers’ Index at 56.3, outperforming the UAE (52.9), Kuwait (53.5), and Qatar (51.4).

The IPI measures changes in industrial output across mining, manufacturing, utilities, and waste management, following the International Standard Industrial Classification framework.