Saudi's industrial production increases by 1.5% in May due to enhancements in mining and manufacturing sectors: GASTAT report
Saudi Arabia's industrial sector experienced significant growth in May 2025, according to the latest data from the General Authority for Statistics (GASTAT). The Industrial Production Index (IPI) reached 108.8, marking a 2.5% increase from April and a 1.5% year-on-year expansion.
The manufacturing sector was a key driver of this growth, with a 0.9% year-on-year increase compared to May 2024. The growth in manufacturing was supported by strong gains in chemicals and chemical products (14.0%) and food products (3.2%). On a monthly basis, manufacturing activity rose by 2.3%, with significant contributions from the production of coke and refined petroleum products.
Non-oil activities also posted impressive growth, with a 3.8% year-on-year increase in May 2025 and a 3.9% monthly rise compared to April. The contribution of non-oil activities to the Kingdom's economic output reached 53.2% in the first quarter.
Oil activities also saw growth, with a 0.5% annual increase in May 2025 and a 2% monthly rise. The country's oil production reached 9.18 million barrels per day, marking a significant increase from the previous year.
The IPI growth in May was driven by growth in mining, quarrying, manufacturing activities, and water supply, sewerage, and waste management. However, the latest GASTAT report did not provide specific details about the growth in mining and quarrying activity or water supply, sewerage, and waste management.
Electricity, gas, steam, and air conditioning supply activity recorded an annual decrease of 7.7 percent, but this was offset by the robust growth in other sectors.
The Minister of Economy and Planning, Faisal Al-Ibrahim, did not provide any additional comments on the latest IPI figures. These trends underscore the Kingdom's ongoing efforts to diversify its economy and reduce reliance on oil revenues.
- The manufacturing sector in Saudi Arabia's industrial sector, particularly chemicals and chemical products, food products, and coke and refined petroleum products, contributed to the significant growth seen in May 2025.
- Non-oil activities also experienced growth, reaching a 3.8% year-on-year increase in May 2025 and contributing 53.2% to the Kingdom's economic output in the first quarter.
- Oil activities, while seeing growth, made up a smaller percentage of the total industrial sector growth, with a 0.5% annual increase and 2% monthly rise in Saudi Arabia's oil production.
- The Industrial Production Index (IPI) growth in May was primarily driven by growth in mining, quarrying, manufacturing activities, and water supply, sewerage, and waste management, although specific details about these sectors were not provided in the latest GASTAT report.
- Another sector, electricity, gas, steam, and air conditioning supply activity, saw a decrease of 7.7 percent annually, but this was counterbalanced by the robust growth in other sectors.
- Despite the growth in various sectors, the Minister of Economy and Planning, Faisal Al-Ibrahim, did not offer any additional comments on the latest IPI figures, underscoring the Kingdom's ongoing efforts to diversify its economy and lessen its dependence on oil revenues.
