The Industrial Production Index (IPI) in Saudi Arabia saw an increase of 1.5 percent in May 2025 when compared to the same month in the previous year. This growth was driven by advancements in mining and quarrying, manufacturing, water supply, sewage, and waste management sectors.
As detailed in the IPI bulletin released by the General Authority for Statistics (GASTAT) in Saudi Arabia, the sub-index for mining and quarrying rose by 2.1 percent, while the manufacturing sub-index saw a year-on-year increase of 0.9 percent. The sub-index for electricity, gas, steam, and air conditioning supply recorded a decline of 7.7 percent.
Meanwhile, the sub-index for water supply, sewage, waste management, and remediation activities surged by 15.5 percent compared to May of the previous year. The bulletin further indicated year-on-year growth in both oil activities and non-oil activities, with increases of 0.5 percent and 3.8 percent, respectively.
Read more: Saudi Industrial Production Index rises 1.6 percent in July 2024
Integration of industrial sectors
In pursuit of enhancing industrial investment opportunities and developing local industry, Saudi Arabia’s Ministry of Industry and Mineral Resources established the Saudi Industrial Development Fund (SIDF) in 1974. The fund is designed to contribute to the formation of industrial sectors, foster competitive institutions, and support strategic initiatives.
The SIDF has been dedicated to adding value to the economy, bolstering local production, and improving non-oil exports. It also aims to facilitate integration between the industrial sector and other sectors. Additionally, the fund focuses on increasing the participation rates of Saudi talent in the industrial sector, optimizing the use of local raw materials, attracting foreign capital, and transferring and localizing technology.
The ministry has prioritized the establishment of an integrated program aimed at developing and managing distinguished industrial cities and technology zones, in collaboration with both public and private sectors. Consequently, in 2001, the ministry founded the Saudi Authority for Industrial Cities and Technology Zones (Modon).
Furthermore, Saudi Arabia established the National Center for Industrial Development in 2007 with the objective of fostering industrial clusters and spearheading development processes across five rapidly growing sectors. These sectors include the automobile sector, metals and mining operations, water desalination, energy spare parts, chemicals, and pharmaceutical industries, as well as biotechnology. In its efforts to develop these sectors, the center also targeted the export of products to foreign markets.
