11 Nov 2024
RIYADH: Saudi Arabia’s industrial production held steady in September, showing a slight year-on-year decrease of 0.3 percent due to a modest decline in manufacturing output, official data showed.
According to data from the General Authority for Statistics, the Kingdom’s manufacturing sector decreased by 0.5 percent in September, bringing the Industrial Production Index to 105.6 points. This decrease was largely attributed to a 12.3 percent drop in the production of coke and refined petroleum products.
In contrast, the manufacture of chemicals and chemical products grew by 2 percent, while food product manufacturing saw a 12.3 percent increase.
Saudi Arabia’s growth in the manufacturing sector is crucial to achieving the goals outlined in Vision 2030, as the Kingdom continues to diversify its economy and reduce its dependence on crude revenues.
GASTAT revealed that the sub-index for mining and quarrying activity remained stable in September compared to the same month in 2023.
“Oil production level in Saudi Arabia reached 8.97 million barrels per day in September 2024, which is the same level recorded in the previous year,” said GASTAT.
In a bid to maintain market stability, Saudi Arabia, in alignment with the decision of OPEC+, reduced its oil output by 500,000 barrels per day in April 2023. This cut has now been extended until December 2024.
IPI is an economic indicator that reflects the relative changes in the volume of industrial output and is calculated based on the industrial production survey.
According to the report, the sub-index for electricity, gas, steam, and air conditioning supply activity recorded a 4.9 percent annual decrease in September, while the sub-index for water supply, sewerage, and waste management activities increased by 2.5 percent during the same period.
The authority revealed that the index for oil activities decreased by 2.5 percent in September compared to the same month the previous year.
On a positive note, the index for non-oil activities increased by 5 percent year on year in September, supported by growth in all non-oil economic activities except for electricity, gas, steam, and air conditioning supply.
Compared to August, Saudi Arabia’s IPI decreased by 1.2 percent.
The Kingdom’s sub-index for mining and quarrying activity decreased by 0.2 percent in September compared to the previous month, while manufacturing activities saw a decline of 2.6 percent.
Month-on-month, the index for oil activities decreased by 1.6 percent, and the index for non-oil activities declined by 0.3 percent.