Saudi Arabia's industrial output matches 2023 high amid continued economic momentum

Kingdom's economy grew by 3.9 per cent in second quarter of this year

Saudi Arabia's economy continues to expand as it boosts oil production along with other Opec members to regain market share. Getty Images

Saudi Arabia’s industrial output in June rose to the highest level since April 2023 as the country's economy expands, with oil and non-oil sectors maintaining growth momentum.

The Industrial Production Index, a measure that gauges the progress of the kingdom's industrial sector, rose by 7.9 per cent to 111.9 in June compared to the same month last year, driven by mining and quarrying as well as a sharp rise in manufacturing, latest data by the General Authority for Statistics (Gastat) showed.

In June, the kingdom’s mining and quarrying activity, which includes upstream oil and gas sector output, increased by 6 per cent on an annual basis. The rise was driven by Saudi Arabia's push to increase its oil production to 9.36 million bpd during the month compared to 8.83 million bpd in June 2024, Gastat said.

Opec+ members led by Saudi Arabia and Russia have been increasing crude production since April, as part of plans to regain market share and support economic growth.

The alliance of producers increased output by 138,000 barrels a day in April and 411,000 bpd each in May, June and July. They also agreed to raise production for August and September by 548,000 bpd and 547,000 bpd respectively.

The latest government data also shows manufacturing activity in June increased by 11.1 per cent, supported by an increase in the manufacture of coke and refined petroleum products which increased by 15.3 per cent, and manufacture of chemicals and chemical products, which rose by 18.7 per cent.

Electricity, gas, steam and air-conditioning supply activity also recorded an annual increase in June, with oil activities rising by 7.7 per cent on an annual basis and non-oil activities by 8.6 per cent.

The growth comes as the Arab world’s largest economy continues to expand amid diversification efforts and a rise in oil production levels.

The International Monetary Fund estimates Saudi Arabia's economy to expand by 3.6 per cent in 2025 and 3.9 per cent in 2026, supported by the continued phase-out of Opec production cuts.

The kingdom is expected to keep its non-oil growth above 3.5 per cent over the medium term, which mirrors the positive effects led by its Vision 2030 economic programme, the Washington-based lender said.

During the second quarter of this year, Saudi economy grew by 3.9 per cent compared to the same period last year amid the expansion of oil and non-oil activities, Gastat said.