Saudi Non-Oil Output Rises 1.2% as Industry Index Falls

Saudi Arabia recorded a 1.2% year-on-year increase in its non-oil activities index in August 2026, even as the country's overall industrial output contracted sharply.

The headline Industrial Production Index fell 23.5% year on year to 87.1, compared with 113.9 in August 2025 and 101.3 in July 2026. The decline was driven largely by weaker oil-related and extractive sectors.

Mining and quarrying contracted 35.8% year on year, while oil activities declined 33.6%. Manufacturing decreased 8.8% year on year and 3.2% month on month, with the steepest drops in coke and refined petroleum products, down 24.1%, and chemicals and chemical products, down 3.3%.

Why non-oil growth matters

Despite the broader contraction, the non-oil index rose 1.4% month on month in addition to its annual gain. The continued expansion of non-oil activities is a closely watched indicator, reflecting the economy's ongoing diversification under رؤية السعودية 2030.

For residents and businesses, the non-oil sector's resilience points to steady activity in industries outside the energy value chain, which supports employment and the wider local market. The figures are preliminary and may be revised as more complete data becomes available.

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