Saudi Arabia’s industrial sector ended 2025 on a high note, with the Industrial Production Index recording annual growth of 8.9 percent in December compared with the same month a year earlier, according to fresh data from the General Authority for Statistics (GASTAT).
The strong performance reflects a broad-based recovery across key economic activities, reinforcing the industrial sector’s role as a major pillar of the national economy and a critical driver of the Kingdom’s economic diversification efforts under Vision 2030.
Oil Production Surges
Mining and quarrying emerged as the primary engine behind the overall index, posting a robust annual increase of 13.2 percent by December. The surge was largely driven by higher crude oil output, which climbed to 10.1 million barrels per day — up significantly from 8.9 million barrels per day in the same period of the previous year.
On a monthly basis, the mining index remained stable, edging up by just 0.3 percent from November, indicating sustained production levels heading into the new year.
Manufacturing Holds Strong
The manufacturing sector also demonstrated resilience throughout the year, recording annual growth of 3.2 percent in December. Strong performance in chemical production and food manufacturing underpinned the gains.
The manufacture of chemicals and chemical products proved to be a key growth engine, rising by an impressive 13.4 percent year on year. Food manufacturing followed closely, expanding by 7.3 percent compared with December 2024.
On a monthly basis, the manufacturing index maintained positive momentum with a 0.3 percent increase. Food manufacturing alone jumped by 9.6 percent from November, while chemical products rose by 2.8 percent, highlighting the sector’s ability to sustain output across diverse product categories.
Utilities Show Mixed Results
Water supply, sewerage, waste management, and remediation activities posted robust annual growth of 9.4 percent, reflecting continued investment in public infrastructure. However, electricity, gas, steam, and air-conditioning supply declined by 2.5 percent compared with December 2024, likely influenced by seasonal demand patterns.
Both utility sectors contracted on a monthly basis, with water-related activities falling by 7.2 percent and electricity and gas declining by 13.1 percent from November, suggesting the impact of seasonal factors or scheduled maintenance cycles.
Balanced Growth Across Oil and Non-Oil Sectors
Perhaps the most encouraging takeaway from the data is the balanced distribution of growth across Saudi Arabia’s economic pillars. Oil-related activities recorded annual growth of 10.1 percent, while non-oil activities expanded by a steady 5.8 percent — a testament to the Kingdom’s ongoing success in building a diversified industrial base.
The figures underscore Saudi Arabia’s commitment to transforming its economy beyond hydrocarbons, with manufacturing, chemicals, and food production emerging as increasingly important contributors to national output.
