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RIYADH: ��������’s industrial production expanded 1.5 percent year on year in May, driven by growth in mining, quarrying, and manufacturing activities, official data showed. 

The Industrial Production Index reached 108.8 in May, rising 2.5 percent from April, according to preliminary figures from the General Authority for Statistics. 

The latest IPI figure, reflecting continued growth in the manufacturing sector, underscores ��������’s progress in its economic diversification efforts aimed at reducing its decades-long reliance on crude revenues. 

In its latest release, GASTAT stated: “Preliminary results indicate a 1.5 percent increase in the Industrial Production Index in May 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.” 

The release further added that the index of oil activities saw an annual rise of 0.5 percent in May, while non-oil activities increased by 3.8 percent. 

In May, another report released by GASTAT revealed that the Kingdom’s gross domestic product grew by 2.7 percent year on year in the first quarter, driven by strong non-oil activity. 

Commenting on the GDP figures at the time, Minister of Economy and Planning Faisal Al-Ibrahim, who also chairs GASTAT’s board, noted that the contribution of non-oil activities to the Kingdom’s economic output reached 53.2 percent — an increase of 5.7 percent from previous estimates. 

According to the latest GASTAT report, the sub-index of manufacturing activities increased by 0.9 percent year on year in May. 

This growth was driven by an increase in the manufacture of chemicals and chemical products, which rose by 14 percent, and the manufacture of food products, which increased by 3.2 percent. 

GASTAT added that the sub-index of mining and quarrying activity rose by 2.1 percent compared to the same month of the previous year. 

“�������� increased its oil production to 9.18 million barrels per day in May 2025 compared to 8.99 million barrels per day in May 2024,” added GASTAT. 

The report further noted that electricity, gas, steam, and air conditioning supply activity recorded an annual decrease of 7.7 percent in May, while water supply, sewerage, and waste management and remediation operations rose by 15.5 percent during the same period. 

On a monthly basis, manufacturing activity in �������� increased by 2.3 percent, supported by growth in the production of coke and refined petroleum products, which rose by 1.9 percent. 

Compared to April, mining and quarrying activities in �������� also increased by 2 percent in May. 

Overall, oil activities rose by 2 percent in May compared to the previous month, while non-oil activities increased by 3.9 percent during the same period. 

RIYADH: ��������’s Capital Market Authority has announced a package of regulatory enhancements aimed at strengthening the investment fund environment in the Kingdom, according to a press release issued on Wednesday.

The reforms, which involve amendments to the Investment Funds Regulations, Real Estate Investment Funds Regulations, and the glossary of terms used across CMA regulations, are designed to advance the regulatory framework governing investment funds.

The goal is to elevate the competitiveness of the asset management industry by identifying development opportunities, adopting international best practices, and enhancing transparency and governance.

The reforms reflect ��������’s broader efforts to deepen its capital markets and attract more local and international investment, in line with Vision 2030 economic diversification goals.

According to a CMA board decision, the updated rules will help expand and develop the investment fund and REIT sectors, increase transparency for unitholders, and improve investor protection through more robust governance standards.

Key reforms

One of the major changes includes broadening the categories of entities allowed to distribute investment fund units. Under the new rules, fund units may now be distributed via licensed investment platforms and e-money institutions approved by the Saudi Central Bank, including through their websites and mobile apps.

Additional reforms cover the procedures for fund termination and the removal of fund managers, as well as new guidelines for voluntary withdrawal by managers of both public and private funds.

A key requirement is obtaining CMA approval for such withdrawals, and ensuring that the outgoing fund manager transfers all management responsibilities to a successor within 60 days. This is aimed at safeguarding investor rights and ensuring a smooth transition process.

REIT flexibility in parallel market

In a move to expand investment opportunities and increase potential returns for investors, the CMA will now allow traded real estate investment funds listed on the parallel market to invest in real estate development projects at the time of fund establishment.

These investments will not be bound by the standard asset allocation ratios and restrictions previously outlined in the Real Estate Investment Funds Regulations.