Is Saudi Arabia's industrial production index surging at the right time?

Saudi Arabia has experienced a notable increase in its Industrial Production Index, which grew by 3.4 percent year on year in November 2024. This rise brought the index to a level of 103.8, suggesting robust growth within various sectors of the economy. Notably, the mining and quarrying sub-index contributed to this growth, recording a 1.2 percent annual increase supported by a slight rise in oil production, which reached 8.93 million barrels per day in November compared to 8.82 million barrels per day in the same month of the previous year. Additionally, the manufacturing segment showed an impressive expansion of 7.2 percent year on year. This growth was significantly driven by a staggering 17.6 percent increase in the production of coke and refined petroleum products. Although there was a decline of 2.1 percent in electricity, gas, steam, and air conditioning supply, the overall manufacturing robustness indicates a strong performance from various industries. Conversely, the water supply, sewerage, waste management, and remediation activities saw a remarkable surge of 10.5 percent, illustrating a diversification in growth across industrial sectors. The oil activities index itself rose by 3.8 percent in November compared to the previous year, reflecting the Kingdom's enhanced productivity in its mining sector. Overall, this positive trend in industrial production in Saudi Arabia highlights the country's economic resilience, particularly amidst fluctuating global oil prices and other economic challenges. The diversified growth across different sectors positions the Kingdom to capitalize on its resources effectively in the future.