Saudi Arabia’s industrial production increased by 4.3% in June compared with May, supported by higher activity in mining, manufacturing and utilities. However, production was significantly lower than a year earlier.
The Kingdom’s Industrial Production Index reached 92.3 points in June, up from 88.5 in May, 84.9 in April and 91.0 in March, according to preliminary data from the General Authority for Statistics.
The latest figures come amid the ongoing U.S.-Iran conflict, which has disrupted regional supply chains and affected industrial activity in several parts of the Middle East.
The data also shows continued growth in Saudi Arabia’s non-oil economy. The Riyad Bank Purchasing Managers’ Index reached 53.1 in July, marking its fourth consecutive month of expansion. Output and new orders remained strong despite challenges caused by regional tensions.
GASTAT said mining and quarrying activity increased by 5.1% in June compared with the previous month.
Manufacturing activity also rose by 1.8%, helped by a 3.1% increase in the production of coke and refined petroleum products and a 1.7% rise in the manufacture of chemicals and chemical products.
Electricity, gas, steam and air conditioning supply activity increased by 25.4% in June compared with May. Water supply, sewerage, waste management and remediation activities also rose by 3.9% during the same period.
On a monthly basis, the index for oil activities increased by 4.6%, while non-oil activities grew by 3.7%.
The rise in industrial activity comes as Saudi Arabia’s wider economy continues to expand. GASTAT reported in June that the Kingdom’s gross domestic product grew by 3% year over year during the first quarter of 2026.
Both oil and non-oil activities recorded annual growth of 2.9% during the first quarter, while government activities increased by 1.5%.
Non-oil activities were the biggest contributor to overall GDP growth, adding 1.7 percentage points.
Despite the monthly increase, Saudi Arabia’s IPI fell by 16.3% in June compared with June 2025. The decline was mainly caused by a 27% drop in mining and quarrying activity.
Manufacturing activity also fell by 2.3% year over year, largely due to a 6% decline in the manufacture of coke and refined petroleum products.
Electricity, gas, steam and air conditioning supply activity, however, increased by 2.8% in June compared with the same month in 2025.
GASTAT also reported a 6% year-over-year increase in water supply, sewerage, waste management and remediation activities in June.
On an annual basis, oil activities declined by 23.2%, while non-oil activities recorded a slight increase of 0.1%.
The Industrial Production Index measures changes in the volume of industrial production. It is based on the Industrial Production Survey and follows the International Standard Industrial Classification of Economic Activities, or ISIC4. The index covers mining and quarrying, manufacturing, electricity and gas supply, and water and waste management.
The data is collected through the Industrial Production Survey, which covers a sample of industrial establishments operating in the targeted sectors.
