Saudi industrial production rises 4.3% month-on-month in June despite 16.3% annual decline

Saudi Arabia's industrial sector demonstrated resilience in June 2026, as the Industrial Production Index (IPI) rose by 4.3 percent compared to the previous month, despite a 16.3 percent year-on-year decline, according to the General Authority for Statistics (GASTAT). On a monthly basis, mining and quarrying experienced a 5.1 percent increase, while manufacturing activity grew by 1.8 percent.

The manufacturing boost was fueled by a 3.1 percent rise in coke and refined petroleum product manufacturing, and a 1.7 percent increase in chemical product manufacturing. Meanwhile, electricity, gas, steam, and air-conditioning supply production surged by 25.4 percent month-on-month, and water supply, sewerage, waste management, and remediation activities grew by 3.9 percent.

Within manufacturing, food products saw the highest monthly growth at 4.1 percent. However, on an annual basis, mining and quarrying plummeted by 27 percent year-on-year, while manufacturing declined by 2.3 percent. This decline was driven by a 6 percent drop in coke and refined petroleum product manufacturing and a 2.6 percent decrease in chemical product manufacturing.

Within manufacturing, basic metals witnessed a 4.9 percent annual increase, while other economic activities rose by 3.4 percent and beverages increased by 1.8 percent. On the other hand, electricity, gas, steam, and air-conditioning supply production climbed by 2.8 percent year-on-year, and water supply, sewerage, waste management, and remediation activities expanded by 6 percent.

In terms of main economic activities, oil activities saw a 23.2 percent decline in June, while non-oil activities grew by 0.1 percent. On a monthly basis, oil activities increased by 4.6 percent, and non-oil activities rose by 3.7 percent.