Saudi Arabia Sees Strong Industrial Recovery with 4.3% Output Growth
RIYADH — Saudi Arabia’s industrial production saw a monthly rise of 4.3 percent in June, driven by higher activity in mining, manufacturing, and utilities, despite a sharp annual decline, according to the General Authority for Statistics.
The Industrial Production Index stood at 92.3 points, up from 88.5 in May. Mining and quarrying activity increased 5.1 percent month on month, while manufacturing activity rose 1.8 percent, supported by growth in coke and refined petroleum products and chemicals. Electricity, gas, steam, and air conditioning supply activity jumped 25.4 percent.
On an annual basis, however, the IPI declined 16.3 percent from June 2025, largely due to a 27 percent drop in mining and quarrying activity. Manufacturing fell 2.3 percent, while oil activities declined 23.2 percent. Non-oil activities saw a marginal annual increase of 0.1 percent.
The industrial expansion comes as Saudi Arabia’s broader economy continues to grow. In June, GASTAT reported that the Kingdom’s gross domestic product grew by 3 percent year on year in the first quarter of 2026, with non-oil activities contributing 1.7 percentage points to overall GDP growth.
The data follows the ongoing US-Iran conflict, which disrupted regional supply chains, and points to steady growth in the non-oil economy. The Riyad Bank Purchasing Managers’ Index stood at 53.1 in July, marking a fourth consecutive month of expansion. Saudi industrial shares were mixed on Monday, with the benchmark Tadawul All Share Index closing 0.1 percent higher.
