Industrial production in Saudi Arabia saw a pronounced recovery in July month-on-month due to double-digit growth in both the extraction industry and energy sector operations despite difficult macroeconomic conditions in the region.
According to figures published by the General Authority for Statistics (GASTAT) in Riyadh on Thursday, the Industrial Production Index (IPI) of the Kingdom jumped 10.4 percent month on month to touch 101.5 points from 91.9 points logged in June. This pronounced rebound highlights that the Kingdom’s industrial base is flexible enough in operation despite continuing geopolitical uncertainty and supply chain issues throughout the Middle East.
This month-on-month increase was primarily triggered by the extraction industry. GASTAT’s sub-index of mining and quarrying activities grew 19 percent month-on-month from its levels in June, whereas energy operations were up 16.3 percent month-on-month.
Manufacturing output registered a modest 1.3 percent uptick over the same period, anchored primarily by a 6.5 percent surge in coke and refined petroleum products processing. Utility operations likewise expanded, with electricity, gas, and cooling supply output rising 5.4 percent, and water management services gaining 2.6 percent. Non-oil activities, however, posted a slight 0.2 percent decline from June.
Despite the strong month-on-month recovery, the overall index fell 8.1 percent when compared to July 2025 figures. This year-on-year drop reflects broader adjustments in global resource demand, led by an 11.4 percent annual decline in oil activities and a 5.8 percent dip in manufacturing performance.
Refined petroleum product production contracted 13.6 percent year-on-year. Conversely, utility infrastructure demonstrated sustained yearly strength, with utility supply rising 4.5 percent and water management activities increasing 7.8 percent compared to the same period last year.
GASTAT calculates the IPI using the International Standard Industrial Classification (ISIC4) framework, sampling domestic enterprises across manufacturing, mining, utilities, and waste management to evaluate short-term output trends.
