Saudi Arabia's mining and quarrying sector experienced a 19 percent growth in July 2026 compared to the previous month, according to preliminary data released by the General Authority for Statistics (GASTAT). This surge played a primary role in lifting the Kingdom's overall Industrial Production Index (IPI) by 10.4 percent month-on-month. Additionally, manufacturing activity climbed by 1.3 percent from June, supported by a 6.5 percent rise in coke and refined petroleum products.
The monthly data also revealed a 16.3 percent rise in oil activities, while non-oil activities experienced a marginal decrease of 0.2 percent compared to June. Utility sectors showed positive monthly growth, with electricity, gas, steam, and air-conditioning supply rising by 5.4 percent, and water supply, sewerage, waste management, and remediation activities increasing by 2.6 percent.
Despite the positive month-on-month momentum, the overall Industrial Production Index contracted on an annual basis, registering an 8.1 percent decline compared to July 2025. This year-on-year drop was largely influenced by decreases in the mining and quarrying sector, which fell by 10.9 percent, and the manufacturing sector, which decreased by 5.8 percent.
Within the annual manufacturing data, the output of refined petroleum products dropped by 13.6 percent, while chemical products fell by 4 percent. Overall oil activities decreased by 11.4 percent year-on-year, and non-oil activities registered a slight annual decline of 0.3 percent. Conversely, some sectors maintained yearly growth, as the supply of electricity, gas, steam, and air conditioning rose by 4.5 percent, and water supply, sewerage, and waste management activities climbed by 7.8 percent.
