Saudi Arabia’s industrial sector posted an exceptional performance at the end of 2025, with the Industrial Production Index recording annual growth of 8.9 percent in December compared with the same month a year earlier, according to data released by the General Authority for Statistics (GASTAT).
The increase reflects a broad-based recovery in key economic activities, led by mining and quarrying as well as manufacturing, reinforcing the sector’s role as a major pillar of the national economy.
Oil production
Mining and quarrying was the main driver of the overall index, posting a strong annual increase of 13.2 percent by December. The surge was largely attributed to higher crude oil output, which rose to 10.1 million barrels per day, compared with 8.9 million barrels per day in the same period last year.
On a monthly basis, the index remained relatively stable, edging up by just 0.3 percent from November.
Manufacturing
The manufacturing sector also showed resilience, recording annual growth of 3.2 percent, supported by strong performance in chemical and food-related activities.
The manufacture of chemicals and chemical products emerged as a key growth engine, rising by 13.4 percent, followed by food manufacturing, which grew by 7.3 percent year on year.
Month on month, the manufacturing index maintained positive momentum with a 0.3 percent increase. Food manufacturing alone jumped by 9.6 percent, while chemical products rose by 2.8 percent compared with November 2025.
Utilities and public services
In utilities, water supply, sewerage, waste management, and remediation activities posted robust annual growth of 9.4 percent.
In contrast, electricity, gas, steam, and air-conditioning supply declined by 2.5 percent compared with December 2024.
On a monthly basis, both sectors contracted, with water-related activities falling by 7.2 percent and electricity and gas by 13.1 percent compared with November 2025, suggesting the impact of seasonal factors or scheduled maintenance.
Oil and non-oil balance
Overall, the data point to a balanced distribution of growth across Saudi Arabia’s economic pillars. Oil-related activities recorded annual growth of 10.1 percent, while non-oil activities expanded by a steady 5.8 percent.
In the short term, non-oil activities outperformed on a monthly basis, rising by 0.4 percent, while oil activities slipped slightly by 0.3 percent, underscoring the Kingdom’s ongoing economic diversification strategy.
