Non-oil industrial activities in the Kingdom of Saudi Arabia recorded strong growth of 5.3% during 2024, reflecting the success of the Kingdom’s efforts to diversify its economy as part of Vision 2030.
According to a report by the General Authority for Statistics, the overall Industrial Production Index (IPI) declined by 2.3% due to a 5.2% drop in oil-related activities. The mining and quarrying sector—which includes oil extraction—declined by 6.8% over the year, negatively impacting the overall index despite the growth in non-oil sectors.
The Authority explained that the manufacturing sector played a pivotal role in supporting growth, recording an annual increase of 4.7%. Food production rose by 6.2%, while the production of chemicals and chemical products increased by 2.8%, alongside a similar growth rate in the production of coke and refined petroleum products.
The report highlighted positive trends in public utilities and infrastructure sectors. Activities in electricity, gas, steam, and air conditioning supply grew by 3.5%, while water supply, sewage, and waste management services rose by 1.6%.
This growth in the non-oil industrial sector aligns with Saudi Arabia’s efforts to achieve the goals of Vision 2030, aimed at diversifying income sources and employment opportunities beyond oil. These efforts are supported by reforms including simplified licensing procedures, tax incentives, and major projects in the fields of industry, logistics, and technology.
Despite fluctuations in oil prices, these expansions have begun to yield early success in the private sector, driven by an increase in foreign direct investment.
Saudi Minister of Economy and Planning, Faisal Al-Ibrahim, had predicted during the Davos Conference in January that the non-oil economy would grow by 4.8% during the current year.
In a related context, the non-oil export sector experienced remarkable growth. The total value of Saudi Arabia’s non-oil exports reached SAR 515 billion (USD 137 billion) in 2024, marking a 13% increase compared to the previous year and a 113% rise since the launch of Vision 2030.
This growth was distributed across various export sectors, with the value of merchandise exports amounting to SAR 217 billion, driven by both petrochemical and non-petrochemical products. Saudi Arabia now exports to more than 180 countries worldwide, with 37 countries—including the UAE, France, and Indonesia—recording historic import levels from the Kingdom, reinforcing its position as an emerging global trade hub.
