Saudi industrial output jumps 7.9% in June on manufacturing gains
Figures from the General Authority for Statistics also revealed a 1.6 percent month-on-month rise in the Industrial Production Index, underscoring momentum in the Kingdom's non-oil economy.
The IPI, which measures changes in industrial output across mining, manufacturing, utilities, and waste management, is a key indicator for Saudi Arabia's Vision 2030 diversification drive.
The June IPI figure, reflecting continued growth in the manufacturing sector, affirms Saudi Arabia's progress in its economic diversification efforts aimed at reducing its decades-long reliance on crude revenues.
In its latest report, GASTAT stated: 'Preliminary results indicate a 7.9 percent increase in the IPI in June 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity, electricity, gas, steam, and air conditioning supply activity and water supply, sewerage and waste management and remediation activities.'
Mining and quarrying — which include crude oil production — increased 6 percent annually as Saudi output rose to 9.36 million barrels per day, up from 8.83 million bpd in June 2024.
The authority revealed that the sub-index for manufacturing activities rose 11.1 percent year on year in June, supported by an increase in the manufacture of coke and refined petroleum products, which jumped 15.3 percent, and the production of chemicals and chemical products, which rose 18.7 percent.
In May, a separate report released by GASTAT revealed that the Kingdom's gross domestic product grew 2.7 percent year on year in the first quarter, driven by strong non-oil activity.
Commenting on the GDP figures, Saudi Arabia's Minister of Economy and Planning, Faisal Al-Ibrahim, who also chairs GASTAT's board, said at the time that the contribution of non-oil activities to the Kingdom's economic output reached 53.2 percent — an increase of 5.7 percent from previous estimates.
The sub-index of electricity, gas, steam, and air-conditioning supply activity increased 5.6 percent in June, compared to the same month in 2024.
The authority added that the sub-index of water supply, sewerage, waste management, and remediation operations increased 6.9 percent year on year in June.
Overall, the index of oil activities advanced 7.7 percent year on year in June, while the index of non-oil activities rose 8.6 percent during the same period.
On a monthly basis, manufacturing activity in Saudi Arabia increased 1.4 percent, supported by growth in the production of coke and refined petroleum products, which rose 1.7 percent.
Compared to May, mining and quarrying activities in the Kingdom also increased 1.9 percent in June.
Overall, the index of oil activities increased 1.9 percent in June from May, while non-oil activities expanded 1.1 percent during the same period.
The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors.
S&P Global data show the Kingdom's non-oil private sector remained robust in July, with its Purchasing Managers' Index at 56.3, outpacing the UAE at 52.9, Kuwait at 53.5, and Qatar at 51.4.
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