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 decline from a year earlier.
The Kingdom’s Industrial Production Index stood at to 92.3 points, up from 88.5 in May, 84.9 in April, and 91.0 in March, according to preliminary data released by the General Authority for Statistics.
The data comes in the wake of the ongoing US-Iran conflict, which disrupted regional supply chains and industrial activity across several parts of the Middle East region.
The figures also point to steady growth in Saudi Arabia’s non-oil economy. The Riyad Bank Purchasing Managers’ Index stood at 53.1 in July, marking a fourth consecutive month of expansion, with output and new orders remaining strong despite regional headwinds.
In its latest report, GASTAT stated: “On a monthly basis, the sub-index of mining and quarrying activity increased by 5.1 percent.
“The sub-index of manufacturing activity showed an increase of 1.8 percent, supported by the rise in the activity of the manufacture of coke and refined petroleum products, which increased by 3.1 percent, and manufacture of chemicals and chemical products, which increased by 1.7 percent.”
Saudi GDP growth
According to the report, the sub-index of electricity, gas, steam, and air conditioning supply activity increased by 25.4 percent in June compared to May, while the sub-index of water supply, sewerage, and waste management and remediation activities increased by 3.9 percent during the same period.
Based on the month-on-month trend, the index for oil activities increased by 4.6 percent, and the index for non-oil activities increased by 3.7 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.
The report revealed that both oil and non-oil activities recorded annual growth of 2.9 percent in the first quarter, while government activities rose by 1.5 percent.
Non-oil activities emerged as the primary driver of overall GDP growth, contributing 1.7 percentage points.
Annual comparison
Despite the monthly uptick, Saudi Arabia’s IPI declined by 16.3 percent in June compared to the same month in 2025, largely due to a 27 percent decrease in mining and quarrying activity.
According to the report, manufacturing activity also posted a 2.3 percent annual decline, driven by a 6 percent drop in the manufacture of coke and refined petroleum products.
On a positive note, the sub-index of electricity, gas, steam, and air conditioning supply activity recorded an increase of 2.8 percent in June compared to the same period in 2025.
GASTAT added that water supply, sewerage, and waste management and remediation activities also rose by 6 percent year on year in June.
On an annual basis, oil activities declined by 23.2 percent, while non-oil activities witnessed a marginal increase of 0.1 percent.
The IPI measures changes in industrial production volumes based on the Industrial Production Survey and is classified according to the International Standard Industrial Classification of Economic Activities, or ISIC4. It covers mining and quarrying, manufacturing, electricity and gas supply, and water and waste management sectors.
The data is compiled from the Industrial Production Survey conducted on a sample of industrial establishments operating in the targeted sectors.
