Saudi Arabia’s Industrial Output Rises 2% in March, Driven by Manufacturing Growth

Saudi Arabia’s Industrial Production Index (IPI) rose 2 percent year-on-year in March 2025, fueled by strong growth in the Kingdom’s manufacturing sector, particularly within the chemical and food industries, official data from the General Authority for Statistics (GASTAT) showed on Saturday.

The index climbed to 106.5 in March, up from 104.4 during the same period in 2024. On a monthly basis, the index recorded a 1.1 percent increase from February, indicating continued momentum in Saudi Arabia’s industrial sector — a core component of the Vision 2030 economic diversification strategy.

Manufacturing activity, a major component of the IPI, grew 5.1 percent annually in March. The increase was largely driven by a 14.3 percent surge in the production of chemicals and chemical products and a 6.9 percent rise in food manufacturing. Compared to February, manufacturing activity expanded 2.9 percent, with chemicals up 7.2 percent and food products rising by a significant 12.4 percent.

“These figures highlight the resilience and expansion of Saudi Arabia’s non-oil industrial base, which remains critical to national efforts to diversify income sources and stimulate job creation,” GASTAT said in a statement.

However, mining and quarrying activity, which includes crude oil production, recorded a slight 0.2 percent annual decline in March. Saudi oil output averaged 8.96 million barrels per day, down marginally from 8.97 million barrels a year earlier. Despite this, the mining sub-index edged up 0.1 percent from February.

Performance in other sectors varied. The non-metallic mineral products segment posted a 6.1 percent year-on-year increase, while basic metals fell 6.6 percent annually but rose 1.4 percent month-on-month. Electrical device manufacturing rose 4 percent compared to March 2024 but declined 1.1 percent from the previous month.

Paper and paper products grew by 1 percent annually and 0.6 percent month-on-month. Meanwhile, furniture production slumped 15.7 percent from a year earlier but rose slightly (0.2 percent) from February. Other manufacturing activities grew by 0.4 percent annually and 0.3 percent monthly.

The utilities segment showed mixed results. The electricity, gas, steam, and air conditioning supply sub-index dropped 0.9 percent year-on-year and 7.7 percent month-on-month. In contrast, water supply and waste management activities surged by 15 percent year-on-year and 3.7 percent month-on-month.

Overall, oil-related industrial activity saw a modest annual increase of 0.5 percent, while non-oil sectors — including manufacturing and utilities — posted a stronger 5.6 percent year-on-year rise and 3.3 percent monthly growth, reinforcing the Kingdom’s strategic push toward a diversified economy.