Record-Breaking GDP Growth in Saudi Manufacturing
Saudi Arabia’s manufacturing GDP grew by 3.02% YoY from 2023 to 2024. The Q2 2024 peak of 112K SAR million ($29.89B USD) significantly outperformed Q2 2023’s 108K SAR million ($28.83B USD), marking the highest quarterly performance recorded. While Q3 2024 saw a minor increase compared to Q3 2023, Q4 2024 rebounded after 2023’s decline, reinforcing industrial resilience and signaling continued Saudi Manufacturing expansion.
- 2023 Annual Total: 414.5K SAR million ($110.6B USD)
- 2024 Annual Total: 427K SAR million ($114B USD)
Saudi Industrial Production Index (IPI) Up 2.1% in December 2024
Saudi Arabia's Industrial Production Index (IPI) rose 2.1% YoY in December, driven by manufacturing growth and waste management services.
- Manufacturing sector surged 6.3% YoY
- Non-oil activities grew 4% YoY
- Coke and refined petroleum products increased 9.3% YoY
- Chemical industry expanded 4.8% YoY
- Food industry jumped 8.8% YoY
- Paper products grew 8.7% YoY
- Electrical devices posted a 10.5% YoY increase
This reinforces Saudi Arabia’s economic diversification efforts, as the Kingdom shifts toward advanced industrial production and manufacturing beyond oil dependency.
Strategic Shift Toward Advanced Manufacturing
Saudi Arabia’s manufacturing sector is evolving into a global industrial powerhouse, with expanding investment in refining, petrochemicals, and high-tech production.
- Refining and petrochemicals drive export capacity and non-oil revenue growth
- Coke production strengthens infrastructure and steel industries
- Chemical and food manufacturing growth supports domestic and international markets
- Electrical and advanced tech industries accelerate innovation and industrial diversification
Saudi Manufacturing Value Added to Reach $87.19 Billion USD
The sector’s value-added contribution is projected to hit $87.19 billion USD in 2025, reflecting a CAGR of 2.31% (2025–2029). With a 65% value-added margin, the Saudi Manufacturing Expansion continues to drive efficiencies, optimizing production capabilities, and integrating advanced technologies to enhance output while sustaining profitability.
Manufacturing Output to Surpass $134.53 Billion USD
The Saudi Manufacturing Expansion is projected to reach $134.53 billion USD in output by 2025, growing at a CAGR of 2.07% in the next five years. This trajectory signals a robust expansion, fueled by policy-driven incentives, foreign investments, and the Kingdom's Vision 2030 commitment to industrial modernization.
Workforce productivity remains a key metric, with labor efficiency estimated at $405,030 USD per employee in 2025. Additionally, the sector is expected to employ 332,000 workers, with a 2.39% annual employment growth rate ensuring steady job creation and skill development.
Future Prospects: Sustained Growth and Sector Modernization
Saudi Arabia's manufacturing sector continues to expand its industrial capabilities, leveraging strong economic foundations, favorable policies, and investment-driven acceleration. With increasing manufacturing intensity at 11.49%, the Kingdom is poised to strengthen its global manufacturing competitiveness, driving innovation and technological integration.
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