Customer Service: 920020081 General Authority for Statistics Website: http://www.stats.gov.sa Industrial Statistics E-mail: info@stats.gov.sa

P.O. Box 3735 Riyadh 11481 Kingdom of Saudi Arabia

Industrial Production

July 2020

Industrial Production decreases by 13.4% in July 2020

In July 2020, the Industrial Production Index decreased by 13.4% compared to the same month of

the previous year (July 2019). The decline in industrial production resulted almost exclusively from

lower production in mining and quarrying activity (index weight shares 74.5%), which fell by 11.2%.

Saudi Arabia reduced its oil production from 9.5 million barrels per day in July 2019 to 8.4 million

barrels per day in July 2020. In July, manufacturing activities decreased by 20.5% compared to July

2019 as the COVID-19 pandemic led many factories to reduce production operations. Although the

performance of the index improved in July compared to last month by 10.2%, it is still lower than

it was before the pandemic as it decreased by 11 % compared to February before the pandemic

started.

Mining and quarrying dominate Industrial Production

• The mining and quarrying activity led to a decrease in the industrial production in Saudi

Arabia. This decrease is attributed to low production of oil in Saudi Arabia in July 2020

compared to the same month of last year.

• Non-oil manufacturing activity decreased by 20.5% compared to July 2019 due to the

decrease witnessed in most of the industrial activities, as the manufacture of electrical

equipment activity declined by 57%, while the manufacture of clothing and manufacture

of machinery and equipment by 44.6% and 42.7% respectively, compared to July 2019. On

the other hand, manufacture of beverages increased in production by 10.9%

• Electricity and gas supply activity recorded a decrease of 3% compared to the same month of

last year. but because it has a low weight in the IPI (2.9% of the index), it did not hugely affect

the index.

Industrial Production increases by 10.2% compared to June 2020

• Compared to the previous month (June 2020) the IPI increased by 10.2%. This increase resulted

mainly from the mining and quarrying activity 13.3% as oil production went up from 7.5m

barrel/day in June to 8.4 m barrel/day in July.

• Non-oil manufacturing activity increased by 3.2%. Most of industries showed increases in

volumes produced compared to June 2020, whereas the largest increase was observed in the

production of coke and refined petroleum products (10.7%), beverages (6.9%), and other non-

metallic mineral products (6.7%). On the other hand, production of electrical equipment

manufacture decreased in volumes produced by 9.8%. whereas the production of paper

manufacture decreased by 5.6%

• The electricity and gas supply increased by 3.2%, with little impact on the IPI because of its

low weight.

Customer Service: 920020081 General Authority for Statistics Website: http://www.stats.gov.sa Industrial Statistics E-mail: info@stats.gov.sa

P.O. Box 3735 Riyadh 11481 Kingdom of Saudi Arabia

Industrial Production

July 2020

Methodology The Industrial Production Index (IPI) is an economic indicator, reflecting the relative changes of

the size of industrial production quantities. It is calculated on the basis of the Industrial Production

Survey, which is implemented on a sample of 3000 industrial establishments, represented in three

activities; mining and quarrying, manufacturing, and electricity and gas supply. The IPI data is

based on the International Standard Industrial Classification of Economic Activities (ISIC_ 4), and

it is published on a monthly basis

Annual and Monthly Change in IPI by activity, July 2020

Economic activity

Percent change in July 2020 compared to

July-19 June-20 weight

GENERAL INDEX -13.41% 10.22% 100

Mining and quarrying -11.18% 13.30% 74.5

Manufacturing -20.53% 3.18% 22.6

Electricity and gas -3.04% 3.24% 2.9

Links: All Tables, Methodological Note

-9.8%

5.9%

5.9%

-5.6%

4.7%

1.4%

3.0%

3.2%

10.7%

6.7%

2.7%

-0.3%

-1.0%

6.9%

-57.0%

-44.6%

-42.7%

-38.6%

-37.8%

-37.7%

-32.2%

-20.5%

-19.3%

-17.2%

-14.2%

-11.6%

-9.2%

10.9%

-70.0%-60.0%-50.0%-40.0%-30.0%-20.0%-10.0%0.0% 10.0%20.0%

Manufacture of electrical equipment

Manufacture of machinery and equipment n.e.c.

Manufacture of rubber and plastics products

Manufacture of basic metals

Manufacture of coke and refined petroleum…

Manufacture of fabricated metal products

Manufacture of food products

Non-oil Industrial Production July 2020 (annual and monthly changes)

annual change

monthly change

-0.86 -2.04

-5.96-6.38

-9.00 -10.28 -9.10

-7.27

-11.29

-2.45

-8.10

-6.35-6.68 -5.72 -3.29

7.04

-15.52

-22.24

-13.41

-30.00

-20.00

-10.00

0.00

10.00

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FEB

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JUL

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DEC JAN…

FEB

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July

Annual Change in IPI (%)

Links: All Tables, Methodological Note