Saudi Industrial Output Rises 2% in March, Driven by Manufacturing

Saudi Arabia’s Industrial Production Index (IPI) rose by 2% year-on-year in March 2025, reaching 106.5, according to preliminary data from the General Authority for Statistics. The increase was primarily driven by strong growth in the manufacturing sector, reflecting the Kingdom’s ongoing push to diversify its economy beyond oil.

Month-on-month, the index also saw a 1.1% rise from February’s figure of 105.4. Manufacturing posted a 5.1% annual increase, led by a 14.3% surge in chemical production and a 6.9% uptick in food manufacturing—both seen as cornerstone industries in Saudi Arabia’s industrial strategy.

The non-oil industrial sectors grew 5.6% compared to March 2024 and 3.3% from the previous month. Electrical equipment and paper products recorded notable gains, while output in basic metals and furniture declined. Meanwhile, utilities showed a mixed picture: water supply and waste management jumped 15%, while electricity and gas saw a decline.

Mining and oil extraction—the largest components of the IPI—fell marginally by 0.2% year-on-year, underscoring the shifting weight toward non-oil industries. Oil-related activities edged up just 0.5%, reinforcing the broader economic transformation underway.

The latest data reflects progress under Saudi Arabia’s Vision 2030 plan, which aims to reduce the Kingdom’s dependence on hydrocarbons by expanding the industrial and manufacturing base. With non-oil sectors continuing to outperform, the Kingdom is increasingly positioning itself as a regional hub for diversified industrial growth.