Saudi Industrial Output Up 4.3% in June, Down Yearly

The Kingdom's Industrial Production Index rose 4.3% month-on-month in June 2026, offering a modest sign of recovery, even as the index recorded a sharp 16.3% decline compared with the same month a year earlier. The index stood at 92.3 points in June 2026, down from 110.2 points in June 2025.

The annual drop was driven mainly by oil activities, which fell 23.2% year-on-year, though they climbed 4.6% on a monthly basis. Non-oil activities showed more stability, edging up 0.1% year-on-year and rising 3.7% compared with the previous month.

Within the annual figures, mining and quarrying was the main drag, falling 27% year-on-year, while manufacturing declined 2.3%. Among manufacturing subcomponents, the production of coke and refined petroleum products dropped 6% year-on-year, and chemicals and chemical products fell 2.6%.

Why it matters

The index tracks the output of the Kingdom's industrial sectors and serves as a barometer of wider economic momentum. The month-on-month rise suggests activity is picking up in the short term, while the annual decline reflects softer oil output over the past year.

For residents and the business community, industrial performance shapes job opportunities, investment flows, and the pace of expansion in non-oil sectors, a key focus of the Kingdom's diversification efforts. The modest annual gain in non-oil activities points to steady progress in areas beyond crude production.

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