Saudi Industrial Output Sees Strong Monthly Rebound Amid Regional Headwinds

Saudi Arabia's industrial production rebounded by 4.3% in June, thanks to gains in mining, manufacturing, and utilities sectors. According to preliminary data from the General Authority for Statistics, the Kingdom's Industrial Production Index (IPI) stood at 92.3 points, up from 88.5 in May. This growth comes despite a sharp decline from last year, when IPI dropped by 16.3%.

The rise was driven by higher activity in mining and quarrying, which increased by 5.1% on a monthly basis, as well as manufacturing, up 1.8%, and utilities, up 25.4%. The report also highlighted steady growth in Saudi Arabia's non-oil economy, with the Riyad Bank Purchasing Managers' Index standing at 53.1 in July.

The expansion is seen as a positive sign for the Kingdom's broader economy, which grew by 3% year-on-year in the first quarter of 2026. Non-oil activities emerged as the primary driver of overall GDP growth, contributing 1.7 percentage points.