Fueled by high production in manufacturing, electricity and gas supplies, and mining and quarrying, Saudi Arabia’s Industrial Production Index (IPI) grew by 17.7% in July, according to the General Authority for Statistics (GASTAT). 

Mining and quarrying surged by 14.1% in July compared to the same month last year, according to a GASTAT report. Saudi Arabia increased its oil output to its highest level by more than 10 million barrels per day in July 2022. Compared to the same month last year, industrial activity grew by 32.6%. The report also noted a 5% rise in gas and power supplies. 

IPI is still exhibiting positive tendencies but has slowed down for the third consecutive month from a 26.7 year-on-year gain in April. According to GASTAT, IPI is an economic indicator that indicates the relative changes in the amount of industrial output.

The index increased by 1.6%  monthly, with mining and quarrying, which accounts for 74.5% of its weight, driving the growth. Gas and electricity supplies, meanwhile, saw a 14.6% increase this month, but their minor contribution rendered this unimportant to the index.

Looking at the last four months of performance, the slower growth in mining and quarrying led to the deceleration in the headline IPI. In contrast, manufacturing’s contribution increased by 1.7 percentage points from 5.7 in April to 7.4 in July as the sector’s annual growth accelerated to 32.6% in July from 25.1% in April.

The volume of crude output increased at a slower rate in July than it did in April—14.2% versus 28.4%. This has led to a slower expansion in mining and quarrying.

Most Innovative Companies comes to the Middle East this October! Click here to know more.