Saudi Arabia's Industrial Production Index (IPI) expanded 5.1 percent in 2025 compared to the previous year, reaching 110.4 points, up from 105.1 in 2024 and 107.5 in 2023, according to the General Authority for Statistics (GASTAT).
Mining and quarrying lead growth
Mining and quarrying activities recorded a 5.8 percent year-on-year increase in 2025, contributing significantly to the overall IPI rise. Manufacturing activity grew by 3.9 percent, supported by strong performances in key subsectors.
Within manufacturing, output of coke and refined petroleum products rose 3.7 percent, chemicals and chemical products increased by 9.3 percent, and food products manufacturing grew 2.9 percent.
Utilities and water sectors also expand
The annual IPI for electricity, gas, steam, and air conditioning supply activities increased by 5.2 percent, while water supply, sewerage, waste management, and remediation activities rose by 10 percent.
Overall, the IPI for oil activities increased by 5.4 percent in 2025, while the index for non-oil activities rose by 4.3 percent, underscoring continued growth across both segments of the industrial economy.
Broader economic context
GASTAT reported that the kingdom's gross domestic product grew 3 percent year on year in the first quarter of 2026. Both oil and non-oil activities saw annual expansion of 2.9 percent, while government activities rose by 1.5 percent. Non-oil activities contributed 1.7 percentage points to overall GDP growth.
“In 2025, the annual IPI increased by 5.1 percent compared to 2024, driven by the increase in mining and quarrying activities, manufacturing activities, electricity, gas, steam, and air conditioning supply activities, and water supply; sewerage, waste management and remediation activities,” said GASTAT.
Methodology and scope
The IPI measures changes in industrial output based on the International Standard Industrial Classification (ISIC4) framework and covers mining, manufacturing, utilities, and waste management sectors. It is derived from the Industrial Production Survey conducted on a sample of establishments in the targeted sectors.
The industrial expansion aligns with Saudi Arabia's Vision 2030 agenda, which aims to diversify the economy away from oil dependence by boosting non-oil sectors.
