Saudi Arabia's Industrial Production Index records a 3-year high as oil production grows

RIYADH: Saudi Arabia’s Industrial Production Index, also known as IPI, grew by 22.3 percent in February compared to the same month of 2021.

This was the highest year-on-year growth rate during the last three years, the General Authority for Statistics added.

IPI’s positive growth for the tenth month in a row is attributed to higher production in the three sub-sectors; mining and quarrying, manufacturing and electricity and gas supply.

The relative weights of the mining and quarrying, manufacturing and electricity and gas supply sectors in the IPI are 74.5, 22.6 and 2.9 percent, respectively. 

In February 2022 mining and quarrying grew by 25.5 percent compared to the same month a year earlier, as Saudi Arabia increased its oil production to its highest level by over 10 million barrels per day. 

Additionally, electricity and gas supplies were down by 9.3 percent during February 2022, compared to a month earlier.

This comes as Saudi IPI’s positive trend follows a long period of negative growth rates in 2019 and 2020, driven by pandemic repercussions.

It turned positive in May 2021.