Saudi Arabia's Industrial Production Index (IPI) rose 10.4% month-on-month in July 2026, with the increase driven mainly by a strong recovery in mining and quarrying activity.
Mining and quarrying — which accounts for roughly 75% of the overall index — climbed 19.0% compared with the previous month, making it the biggest contributor to the monthly gain. Manufacturing activity, which represents about 22% of the index, edged up 1.3% month-on-month, supported by a 6.5% rise in coke and refined petroleum products output.
On an annual basis, however, the picture was softer. The general index stood at 101.5 points (base year 2021), down 8.1% year-on-year. Mining and quarrying fell 10.9% over the year, with its sub-index dropping from 100.92 to 89.96 points, while manufacturing declined 5.8% — including a 13.6% drop in coke and refined petroleum products and a 4.0% fall in chemicals.
Some segments recorded annual growth. Electricity, gas, steam and air conditioning supply rose 4.5% year-on-year, and water supply, sewerage, waste management and remediation activities increased 7.8%. Electricity and gas make up about 3% of the index structure.
Why it matters
The Industrial Production Index is a key gauge of the health of the Kingdom's non-oil and industrial base, closely watched by businesses, investors and job seekers. The monthly bounce points to renewed momentum in the industrial sector, even as year-on-year figures reflect wider market conditions. The data is published free of charge as a public monthly statistical release and requires no fees or applications to view.
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