Closing Bell: Saudi stock market sees losses as TASI edges down 0.77%

RIYADH: Saudi Arabia’s industrial production index grew 1.3 percent year on year in January, supported by an expansion in manufacturing and waste management activities, official data showed. 

According to the General Authority for Statistics, the index remained steady month on month at 103.9, maintaining levels seen in December. 

The manufacturing sub-index climbed 4 percent annually, driven by a 4.3 percent increase in the production of coke and refined petroleum products and a 4.2 percent rise in chemicals and chemical products. 

In contrast, mining and quarrying activity fell 0.4 percent from January 2024, reflecting a reduction in oil production to 8.92 million barrels per day from 8.96 million a year earlier. 

Saudi Arabia has been accelerating efforts to diversify its economy under Vision 2030, with the industrial and manufacturing sectors playing a key role in reducing reliance on oil. Initiatives such as the National Industrial Development and Logistics Program aim to establish the Kingdom as a regional hub for advanced manufacturing, focusing on petrochemicals, mining, and renewable energy. 

On a monthly basis, the manufacturing sub-index rose 0.3 percent, driven by a 0.1 percent increase in coke and refined petroleum products and a 0.5 percent rise in chemicals and chemical products. Meanwhile, the mining and quarrying sub-index edged up 0.1 percent. 

Other manufacturing segments posted mixed results. The non-metallic mineral products sector saw a 6.9 percent annual increase and a 1.7 percent rise from December, while basic metals manufacturing dipped by 0.7 percent year on year but surged by 0.5 percent compared to the previous month. 

The manufacture of paper and paper products recorded an annual increase of 5.1 percent and a slight monthly dip of 0.1 percent, while electrical devices manufacturing grew by 9.2 percent year on year and 0.7 percent month on month. 

Furniture manufacturing declined by 1.5 percent year on year and 0.4 percent month on month. 

Other economic activities within the manufacturing sector saw an annual rise of 0.6 percent, but a 0.3 percent month-on-month dip. 

The sub-index for electricity, gas, steam, and air conditioning supply fell by 1.7 percent, while the sub-index for water supply, sewerage, and waste management activities saw an 8.7 percent annual increase. 

In January, oil-related activities grew by 0.4 percent year on year and 0.1 percent compared to the previous month.

Non-oil activities also recorded growth, increasing by 3.6 percent annually and 0.2 percent on a monthly basis. This diversification reflects Saudi Arabia’s commitment to expanding its non-oil industrial base in line with Vision 2030. 

The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors. 

JEDDAH: Saudi Arabia’s seaports reported an 18.25 percent increase in exported containers for February compared to the same period last year, signaling a growing demand for the Kingdom’s products.

According to the Saudi Ports Authority, also known as Mawani, a total of 215,491 twenty-foot equivalent units were exported in February 2025, up from 182,229 TEUs in February 2024.

In contrast, the number of imported containers saw a decline of 4.95 percent, totaling 215,741 TEUs, down from 226,968 TEUs in the previous year.

The overall number of containers processed in Saudi seaports amounted to 552,490 TEUs, showing a slight decrease of 1.8 percent from 562,644 TEUs in 2024. Transshipment containers also dropped by 21.03 percent, totaling 112,193 TEUs, compared to 142,071 TEUs in February 2024.

These trends align with Mawani’s objective to foster a sustainable and robust maritime sector that drives both trade and economic growth in the Kingdom.

The developments further support the National Transport and Logistics Strategy, which aims to position Saudi Arabia as a global logistics hub, linking three continents, in line with the nation’s Vision 2030.

The surge in non-oil exports is a clear indication of Saudi Arabia’s successful economic diversification efforts, as the Kingdom seeks to reduce its reliance on oil revenues.

Mawani also reported that the total tonnage handled by Saudi seaports in February was 22,540,434 tonnes, reflecting a 3.66 percent decline from 23,397,237 tonnes during the same period last year.

The breakdown includes 983,027 tonnes of general cargo, 4,027,930 tonnes of bulk solid cargo, and 11,677,568 tonnes of bulk liquid cargo. The ports also received 698,035 heads of livestock, which marks a 22.38 percent decrease compared to 899,293 heads in February 2024.

On a positive note, maritime traffic saw a modest increase of 0.33 percent, with 913 vessels arriving at the ports, compared to 910 vessels in the same period last year.

Passenger traffic surged by 37.85 percent, reaching 93,400 passengers, up from 67,754 the previous year. The number of vehicles handled also rose by 3.43 percent, reaching 78,482 vehicles compared to 75,877 vehicles in February 2024.

In a broader view, Mawani reported a 14.44 percent increase in the total number of containers handled from January to February 2025, reaching 1,270,776 TEUs, compared to 1,110,440 TEUs in the same period last year.

A major step in enhancing Saudi Arabia’s global trade position is the launch of the state-of-the-art South Container Terminal at Jeddah Islamic Port. This initiative, part of DP World’s SR3 billion ($800 million) expansion program, is aimed at upgrading the terminal and reinforcing Saudi Arabia’s status as a key player in international trade.

In addition to this, several key projects have been unveiled, including agreements to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam. These developments, backed by an estimated SR2.9 billion in private sector investment, are poised to further strengthen the Kingdom's logistics infrastructure.