Saudi Industrial Output Falls 16.3% in June

Saudi Arabia's Industrial Production Index fell about 16.3% year on year in June 2026, reflecting continued softness in overall industrial output across the Kingdom.

The index stood at 92.3 points in June 2026, down from 110.2 points a year earlier. Despite the annual decline, the reading edged up 4.3% compared with the previous month, pointing to a modest short-term recovery.

The main driver of the yearly drop was the mining and quarrying sector, which contracted 27%. Manufacturing also slipped, declining 2.3% over the same period.

Some sectors moved in the opposite direction. Electricity, gas, steam and air conditioning supply rose 2.8%, while water supply, sewerage, waste management and treatment activities grew 6%, partly offsetting the broader downturn.

Why it matters

The Industrial Production Index is a closely watched gauge of activity across the Kingdom's factories, energy sector and extractive industries. Movements in the index often signal shifts in employment, business demand and supply chains that can ripple through to prices and job opportunities for residents and expats alike.

While the annual figure underlines ongoing weakness tied largely to the mining sector, the month-on-month gain suggests some stabilisation. Continued growth in utilities and water services also points to steady demand for essential infrastructure serving communities in Riyadh, Jeddah and other cities.

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