Saudi Industrial Output Decline Eases; Surplus Narrows

Saudi Arabia's industrial production posted its smallest annual decline in five months, while the Kingdom's trade surplus narrowed to its lowest level in about the same period,

Industrial output fell 8.1% year on year in July 2026, a marked improvement compared with the 16.3% drop recorded previously. The narrowing decline points to a slower pace of contraction in the industrial sector.

On the trade side, the Kingdom recorded a surplus of SAR 17.3 billion in June 2026, the smallest in five months. Merchandise exports reached SAR 87.8 billion during the month, while imports totalled SAR 70.4 billion.

Within exports, national non-oil exports excluding re-exports stood at SAR 15.3 billion, while re-exports amounted to SAR 9.3 billion. These figures reflect the ongoing effort to broaden the economy's non-oil base.

Why it matters

For residents and businesses across the Kingdom, the figures offer a snapshot of the wider economic climate. A slower decline in industrial output and steady trade flows can influence job opportunities, supply chains, and the availability of locally produced goods. Continued growth in non-oil exports also signals progress toward a more diversified economy that benefits both Saudi nationals and expats.

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