Saudi Industrial Production Accelerates to Three-Year High Driven by Oil Activities

Riyadh | EcoPulse24

Saudi Arabia's industrial production registered an annual growth rate of 10.4% in November 2025, surpassing the previous month's pace and marking the highest performance since October 2022, according to official data released today.

This improvement was driven by a clear acceleration in oil-related activities, with output rising faster than in the prior month. Increases in the production of coke and refined petroleum products, as well as in crude oil and natural gas extraction, bolstered the overall momentum of the industrial sector and reaffirmed the central role of energy-linked industries in Saudi Arabia's production landscape.

Meanwhile, growth in non-oil activities remained unchanged, though the manufacturing sector saw a notable upturn, supported by stronger output in chemicals and food manufacturing. Growth in water supply, sewerage, and waste management accelerated, while the electricity, gas, steam, and air conditioning sector declined after a positive performance in the previous month.

On a monthly basis, industrial activity declined in November, indicating a temporary slowdown after a series of gains; however, this did not affect the sector's positive annual performance.

Analysis:

Saudi Arabia's industrial performance continues to rely heavily on the strength of the oil sector, with non-oil activities maintaining stable, yet unexceptional, contributions. While certain branches of manufacturing have improved, sectoral disparities highlight a transitional phase: oil leads the overall trend, but other service and industrial sectors require additional stimulus to achieve consistent growth in line with the Kingdom's economic transformation goals.