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RIYADH: Saudi Arabia\u2019s non-oil industrial activities grew 1.2 percent year on year in August, despite a broader decline in mining and quarrying output that pushed the Kingdom\u2019s Industrial Production Index down 23.5 percent, official data showed.\u00a0<\/p>\n
Preliminary figures from the General Authority for Statistics showed that the nation\u2019s IPI fell to 87.1 in August, down from 101.3 in July and 113.9 in the same month a year earlier.\u00a0<\/p>\n
The decline was driven largely by a 35.8 percent annual contraction in mining and quarrying activity. \u00a0<\/p>\n
The report added that the manufacturing sub-index decreased by 8.8 percent, affected by a decline in the manufacture of coke and refined petroleum products, which fell by 24.1 percent.\u00a0<\/p>\n
The decline comes as the US-Iran conflict disrupts oil production and shipping across the Middle East, with restrictions on key export routes weighing on regional energy flows.\u00a0<\/p>\n
In its latest report, GASTAT stated: \u201cThe sub-index of electricity, gas, steam, and air conditioning supply activity increased by 9.4 percent, while the sub-index of water supply, sewerage, and waste management and remediation activities increased by 7.4 percent compared to August of the previous year.\u201d \u00a0<\/p>\n
Monthly analysis\u00a0<\/strong><\/p>\n On a monthly basis, Saudi Arabia\u2019s IPI declined by 14 percent, largely due to a 24 percent drop in mining and quarrying activity, a sector that carries significant weight in the Kingdom\u2019s industrial output.\u00a0<\/p>\n The manufacturing sub-index decreased by 3.2 percent, affected by declines in the manufacture of coke and refined petroleum products, which fell by 11.1 percent, and the manufacture of chemicals and chemical products, which decreased by 0.1 percent.\u00a0<\/p>\n Compared with July 2026, the sub-index for electricity, gas, steam, and air conditioning supply increased by 7 percent, while the sub-index for water supply, sewerage, and waste management and remediation activities increased by 0.2 percent.\u00a0<\/p>\n GASTAT further said the index of oil activities decreased by 33.6 percent in August compared with the same month of the previous year.\u00a0<\/p>\n Compared with July, the index of oil activities decreased by 21.5 percent, while the index of non-oil activities increased by 1.4 percent.\u00a0<\/p>\n The IPI measures changes in industrial output volumes based on the International Standard Industrial Classification framework. It covers mining and quarrying, manufacturing, electricity, gas, steam and air-conditioning supply, as well as water supply, sewerage, waste management and remediation activities.\u00a0<\/p>\n<\/div>\n