• The production of chemicals and chemical products increased by 2 percent, whereas the manufacturing of food products experienced a 12.3 percent rise.
• GASTAT reported that the sub-index for mining and quarrying activities remained unchanged in September.

Saudi Arabia's industrial production remained relatively flat in September, showing a minor year-over-year dip of 0.3%, primarily due to a slight decrease in manufacturing output, according to official data from the General Authority for Statistics (GASTAT).

The nation's manufacturing sector experienced a 0.5% decline in September, driving the Industrial Production Index (IPI) down to 105.6 points. This was largely influenced by a sharp 12.3% drop in coke and refined petroleum products production.

However, there were positive signs in other areas, with the production of chemicals and chemical products increasing by 2%, and food product manufacturing surging by 12.3%.

These developments are critical for Saudi Arabia as it pursues its Vision 2030 objectives, which aim to diversify the economy and reduce reliance on oil revenue.

GASTAT also reported that the sub-index for mining and quarrying activity remained unchanged in September compared to the same month in the previous year.

"Saudi Arabia's oil production stood at 8.97 million barrels per day in September 2024, maintaining the same level as the previous year," GASTAT noted. In an effort to stabilize the market, Saudi Arabia, in accordance with OPEC+ decisions, scaled back oil output by 500,000 barrels per day in April 2023, with this reduction set to continue through December 2024.

The IPI serves as an economic indicator reflecting the changes in industrial output volume, derived from the industrial production survey.

According to the report, the sub-index for electricity, gas, steam, and air conditioning supply activities fell by 4.9% annually in September, whereas the sub-index for water supply, sewerage, and waste management activities saw a 2.5% increase during the same period.

Additionally, the index for oil activities dipped by 2.5% in September year-over-year. In contrast, non-oil activities showed a 5% annual growth, driven by expansion across most non-oil economic sectors, excluding electricity, gas, steam, and air conditioning supply.

On a month-over-month basis, Saudi Arabia's IPI dropped by 1.2%. The sub-index for mining and quarrying decreased by 0.2%, while manufacturing activities declined by 2.6% in September compared to August. Concurrently, the index for oil activities fell by 1.6%, and non-oil activities saw a 0.3% reduction month-over-month.