Saudi industrial production increases by 15.7% in September 2022

In September 2022, the Industrial Production Index (IPI) increased by 15.7% compared to September 2021. The IPI continued to show positive growth rates due to the high production in mining & quarrying, manufacturing activity, and electricity and gas supply
Dynamic development in industrial production sector In September 2022, the year-on-year growth rate of the Industrial Production Index (IPI) was 15.7%. Taking a longer-term view, growth of the IPI turned positive in May 2021 after a long period of negative growth rates in 2019 and 2020, partly impacted by the effects of the worldwide pandemic. Since mid-2021, the IPI growth showed a positive trend, accelerating at the end of 2021, continuing to grow by double-digit numbers in 2022
Mining and quarrying main driver of IPI Relative weights of the mining and quarrying, manufacturing and electricity and gas supply sectors in the IPI are 74.5%, 22.6% and 2.9%, respectively. Thus, the trend of the industrial production index in the mining and quarrying sector dominates the trend in the general IPI.
In September 2022, mining and quarrying grew by 14.2% compared to September 2021 as Saudi Arabia increased its oil production to more than 11 million barrels per day in September 2022.
Manufacturing activity increased by 22% compared to the same month of the previous year. Electricity and gas supplies increased by 5.5%.
Compared to August 2022, overall IPI decreased by 0.4% due to the slight slowdown in the three sub-sectors. Mining & quarrying decreased by 0.1%, and the manufacturing sector, and electricity & gas supplies decreased by 1%, and 3% respectively.