Saudi Arabia’s industrial production index sees a strong year-on-year rise, fuelled by manufacturing and modest gains in mining and quarrying

The Saudi Industrial Index 2024 recorded a 5 per cent surge in October compared to the same period last year, reflecting Saudi Arabia’s dedication to economic diversification under Vision 2030. The General Authority for Statistics (GASTAT) reported these figures, emphasizing strong performances across key economic sectors.

At the heart of the Saudi Industrial Index 2024 growth is the manufacturing sector, which achieved an impressive 12.4 percent year-on-year increase. This remarkable performance was driven by a 32.6 per cent surge in the production of coke and refined petroleum products, highlighting the kingdom’s efforts to bolster its industrial base and diversify its economy.

The mining and quarrying sub-index, a critical component of the industrial index as it includes oil production, posted a modest 0.4 per cent annual growth. Oil output edged slightly higher, increasing to 8.97 million barrels per day in October 2024, compared to 8.94 million barrels in October 2023. Despite this incremental gain, the sector remained stable month-on-month, showing little change between September and October.

Overall, the industrial production index reached 106.9 points in October, up 0.4 per cent from the previous month. This steady monthly improvement indicates sustained momentum in the country’s industrial growth.

Saudi Arabia’s industrial production forms a cornerstone of its Vision 2030 initiative, aimed at reducing dependency on oil and fostering growth in manufacturing and other non-oil sectors. The continued expansion of the manufacturing industry, particularly in high-value production like petroleum refining, underscores the kingdom’s progress in achieving these ambitious goals.

With manufacturing emerging as a driving force, Saudi Arabia demonstrates its commitment to building a diversified and resilient economy. The consistent growth of the industrial index reflects the effectiveness of policies designed to boost non-oil contributions to the GDP, further strengthening the nation’s global economic position.

Saudi Arabia’s efforts to enhance the Saudi Industrial Index 2024 are bolstered by significant investments in infrastructure and technology, core components of Vision 2030. The government has launched numerous large-scale projects to modernize industrial facilities and boost productivity in non-oil sectors. These initiatives include collaborations with global technology leaders to implement advanced manufacturing techniques, which are poised to drive further growth across various industries in the years ahead.

Additionally, the rise in the industrial production index aligns with Saudi Arabia’s increasing focus on sustainable development. The kingdom is integrating renewable energy solutions and environmentally friendly practices into its industrial framework, aiming to balance economic growth with ecological responsibility. These initiatives are set to position Saudi Arabia as a leader in sustainable industrialization, bolstering its economic resilience while reducing its carbon footprint.