Hamed Al-Ghamdi from Riyadh

Thursday, July 9, 2026 8:40 | 2 minutes read

Saudi Arabia's industrial production index fell 18.7% in May 2026 compared to the same period last year, affected by a decline in mining and quarrying and manufacturing activities, while the index recorded a monthly increase of 3.2% compared to April.

According to the General Authority for Statistics, issued today, the mining and quarrying activity index recorded a year-on-year decline of 28.6%, while it rose on a monthly basis by 3.9%. Meanwhile, the manufacturing index fell by 6.2% compared to May 2025, driven by a decline in the manufacture of coke and refined petroleum products by 16.7%, in addition to a 4% decrease in the manufacture of chemicals and chemical products.

On a monthly basis, manufacturing grew by 1.6%, supported by an increase in the manufacture of coke and refined petroleum products by 5.9%, along with a slight increase in the manufacture of chemicals by 0.2%.

Regarding other activities, the electricity, gas, steam, and air conditioning supply index fell by 1.4% year-on-year, while the water supply, sewerage, waste management, and remediation activities index rose by 5.7%.

The data also showed that oil activities recorded a year-on-year decline of 26.3%, while non-oil activities fell by 0.6%. On a monthly basis, the oil activities index rose by 4.3%, while non-oil activities recorded growth of 1.3% compared to April 2026.

The industrial production index is one of the most prominent economic indicators measuring the change in the volume of Saudi industrial production, based on data from the industrial production survey covering mining and quarrying, manufacturing, electricity and gas supply, as well as water, sewerage, and waste management activities.

322 new industrial licenses

The Saudi Ministry of Industry and Mineral Resources issued 322 new industrial licenses during April, while 188 new factories started production in the same month.

The volume of investments linked to the new licenses exceeded 12.33 billion riyals, and these projects are expected to provide more than 2,977 job opportunities, according to a report by the ministry's National Center for Industrial and Mining Information.

The value of investments in factories that started production in April reached 2.01 billion riyals, with an estimated 3,606 new job opportunities, reflecting the continued expansion of Saudi Arabia's industrial base and the increasing pace of factories entering actual operation.

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