10/07/2026 02:22 AST
Saudi Arabia's industrial production rebounded 3.2 percent in May from April, led by broad gains across mining, manufacturing and utilities, official data showed.
Despite the monthly gain, industrial activity remained weaker than a year earlier - down 18.7 percent - as lower oil-related production continued to weigh on the Kingdom's overall performance, according to preliminary figures released by the General Authority for Statistics.
The data comes in the wake of the US-Iran conflict, which disrupted regional supply chains and industrial activity across parts of the Middle East, adding to economic uncertainty.
In its latest report, GASTAT stated: "Preliminary results indicate a decrease of 18.7 percent in the Industrial Production Index in May 2026 compared to the same month of the previous year, affected by the decline in mining and quarrying activity and manufacturing activity."
The authority said the Kingdom's mining and quarrying activity recorded a 28.6 percent year-on-year drop in May, while manufacturing activity declined 6.2 percent.
The manufacturing decline reflected weaker output across key industries, led by coke and refined petroleum products, where production fell 16.7 percent. The manufacture of chemicals and chemical products declined 4 percent, while food products manufacturing fell 3.5 percent. The manufacture of basic metals bucked the trend, rising 12.8 percent annually.
The report also said the annual IPI for electricity, gas, steam, and air conditioning supply activities fell 1.4 percent, while water supply, sewerage, waste management, and remediation activities rose 5.7 percent.
Overall, the annual IPI for oil activities fell 26.3 percent in May, while the index for non-oil activities declined 0.6 percent, underscoring a much sharper contraction in oil-related activity than in the non-oil industrial sector.
The monthly figures, however, pointed to a broad-based recovery across industrial sectors.
Mining and quarrying activity increased 3.9 percent from April, while manufacturing rose 1.6 percent. Electricity, gas, steam and air conditioning supply recorded the strongest monthly gain, climbing 15.8 percent, and water supply and waste management activities edged up 0.2 percent.
Oil-related activities increased 4.3 percent on a monthly basis, while non-oil activities rose 1.3 percent, suggesting the recovery extended beyond the energy sector.
The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities, and waste management sectors.
Arab News
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