An increase in the industrial production index in the Kingdom of Saudi Arabia in 2023
The number of factories in Saudi Arabia has increased by 50% since the launch of Vision 2030.
Shrouq
The Kingdom's industrial production index increased by 3.2% in April 2023, compared to the same month of the previous year.
Mining and quarrying
The data issued by the General Authority for Statistics revealed that the rise in the IPI index was driven by the rise in production in the fields of mining, quarrying, manufacturing activity, and electricity and gas supplies.
What is IPI?
IPI is an economic indicator that reflects the relative changes in the volume of industrial production in the Kingdom, and it is calculated based on the industrial production survey.
“The relative weights of the mining and quarrying, manufacturing, and electricity and gas 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 general trend in the IPI".
Mining activities
Compared to April 2022, mining and quarrying activities in Saudi Arabia grew by 0.2 percent in April of this year, as the kingdom increased its oil production to more than 10 million barrels per day per month.
Manufacturing activities also increased by 10.5 percent in April compared to the same month in the previous year, while electricity and gas supplies increased by 25.5 percent during the same period.
However, Saudi Arabia's IPI declined in April by 0.3% compared to March 2023, driven by a decline in manufacturing activities of 2%.
Earlier in April, data from the Ministry of Industry and Mineral Resources revealed that investments in the kingdom's manufacturing scene reached 495 billion Saudi riyals ($132 billion) in just seven years since the launch of Vision 2030 in 2016.
Different projects
The report indicated that the Kingdom issued more than 2,000 new licenses for various projects to increase its local manufacturing capacity, which helped create about 193,000 new job opportunities in the industrial sector since 2016.
Confirming the progress of the economic diversification process in the Kingdom of Saudi Arabia
Earlier in March, Saudi Deputy Minister of Industry and Mineral Resources Osama bin Abdulaziz Al-Zamil said that the number of factories in the kingdom has also increased by 50 percent since the launch of Vision 2030.
All this progress confirms the progress made in the journey of economic diversification in the Kingdom of Saudi Arabia.
