The General Authority for Statistics (GASTAT) in Saudi Arabia has released the annual Industrial Production Index (IPI) for 2024, showing a year-over-year decrease of 2.3 percent. This decline is primarily attributed to a 5.2 percent drop in oil activity, while non-oil activities experienced a 5.3 percent increase, indicating improved performance across all non-oil economic sectors compared to 2023.
According to the data, the annual index for mining and quarrying activities fell by 6.8 percent compared to 2023, whereas the annual index for manufacturing activities rose by 4.7 percent.
Additionally, the annual index for electricity, gas, steam, and air conditioning supply activities increased by 3.5 percent, while the index for water supply, sewerage, waste management, and remediation activities grew by 1.6 percent compared to the previous year.
The IPI serves as an economic indicator that measures changes in the volume of industrial output based on data collected from the industrial production survey.
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Robust growth forecast for non-oil GDP
Saudi Arabia’s non-oil GDP is projected to grow robustly, with the IMF forecasting non-oil GDP growth of 2.0 percent in 2025 and 5.0 percent in 2026. The non-oil sector grew by 4.2 percent in Q1 2025, underpinned by strong domestic demand and government sector expansion.
Vision 2030 targets a non-oil GDP share of 50 percent by 2030, with key sectors including finance, insurance, transport, communication, non-oil manufacturing, and agriculture. Non-oil revenues rose by 9 percent in 2023, and the government has implemented fiscal reforms to further support diversification.
The Saudi manufacturing sector is projected to reach $134.53 billion in output by 2025, with value-added contributions expected to hit $87.19 billion. The sector is driven by investments in refining, petrochemicals, high-tech production, and policy incentives under Vision 2030.
Saudi Arabia has outlined a comprehensive energy sector roadmap for 2025, including major investments in renewable energy projects such as a 1,862 sq.km. solar power project and a 260 sq.km. wind farm. The Jafurah gas plant, expected to start production in 2025, is a key milestone for the Kingdom’s sustainable energy goals.
The non-oil sector is expected to attract investments worth $69 billion by 2030, supporting the growth of non-oil exports and positioning Saudi Arabia as a global hub for industry and innovation. Strategic agreements with international partners are part of the Kingdom’s efforts to boost non-oil sector development.
