Saudi Industrial Production Drops 14.1% in March on Oil Decline

The General Authority for Statistics reported that Saudi Arabia’s Industrial Production Index declined 14.1% year-on-year in March 2026, reflecting reduced activity across key sectors.

The largest drop was recorded in mining and quarrying, which fell 22.2% compared to March 2025. Manufacturing activity also declined by 4.7% over the same period. Within manufacturing, output of coke and refined petroleum products decreased by 11.6%, while chemicals and chemical products fell by 4.5%.

Oil-related activities were down 20% year-on-year, contributing significantly to the overall contraction, while non-oil activities remained broadly stable compared to the same month last year.

On a monthly basis, the index declined 22.3% from February 2026. Mining and quarrying activity dropped 36% month-on-month, while manufacturing decreased by 0.7%. Oil activities fell 30.8% compared to the previous month, whereas non-oil activities rose by 1.4%.

Some sectors recorded annual growth despite the overall decline. Electricity, gas, steam, and air conditioning supply increased by 10.1% year-on-year, while water supply, sewerage, waste management, and remediation activities rose by 1.1%. Basic metals manufacturing also recorded a 9% increase compared to March 2025.