Saudi Manufacturing Output Rises 1.3% in July

Manufacturing activity in Saudi Arabia edged up 1.3% month-on-month in July 2026, supported mainly by a 6.5% rise in the manufacture of coke and refined petroleum products,

The broader industrial production index climbed 10.4% compared with the previous month, helped by a 19% monthly jump in mining and quarrying activity. On a yearly basis, however, overall industrial output contracted 8.1%, reflecting weaker demand across several segments.

Within manufacturing, the picture was mixed. While the sub-index rose month-on-month, manufacturing output fell 5.8% year-on-year. The manufacture of coke and refined petroleum products was down 13.6% compared with the same month a year earlier, and chemicals and chemical products declined 4.0%.

Mining and quarrying, which accounts for roughly 75% of total industrial output, fell 10.9% year-on-year despite its strong monthly gain. Manufacturing makes up about 22% of the structure, and electricity and gas around 3%.

Utilities-related activities offered a brighter note. Electricity, gas, steam, and air conditioning supply rose 4.5% year-on-year, while water supply, sewerage, waste management, and remediation increased 7.8%.

Why it matters

Industrial performance is a key indicator of economic momentum for residents and businesses across the Kingdom, from job stability in refining and mining to the reliability of utilities. The monthly rebound points to short-term recovery, even as the annual figures show the sector is still working through a period of contraction.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving