Saudi Non-oil Industrial Activity Rises Amid Weaker Oil Output
Preliminary data reveals growth in non-oil industries despite softer oil-related production.
Riyadh: Saudi Arabia's non-oil industrial activity demonstrated resilience in March, with output increasing by 1.4% from February, amidst various manufacturing sectors recording steady growth.
This is despite the overall Industrial Production Index (IPI) reflecting a 14.1% decline year-on-year due to lower oil-related activity and weaker mining and quarrying output.According to the General Authority for Statistics (GASTAT), the non-oil activities showed stability compared to the previous year, supported by gains in manufacturing, utilities, and downstream industries.
GASTAT reported that while the index of oil activities decreased by 20% in March 2026 compared to the same month last year, the index of non-oil activities remained stable at a level close to its performance in the same period of the previous year.Additionally, the data showed a decrease in oil-related industrial activity amid global energy market turbulence.
OPEC+ production fell sharply in March, and the International Energy Agency (IEA) warned of supply disruptions removing millions of barrels per day from global markets, affecting industrial output across oil-producing economies.The mining and quarrying activity dropped 22.2% year-on-year and 36% month-to-month.
Manufacturing activity decreased by 4.7% annually, mainly due to lower production in coke and refined petroleum products as well as chemicals.
However, within manufacturing, basic metals saw a 9% increase year-on-year, paper and paper products rose by 2%, and non-metallic products edged up by 0.8%.
Beverage production also increased by 0.5%.Outside of manufacturing, electricity, gas, steam, and air conditioning supply activity surged by 10.1% annually and 4.3% month-to-month in March, while water supply, sewerage, waste management, and remediation activities rose 1.1% year-on-year and 2% compared to February.The IPI measures relative changes in industrial production volumes, capturing data from mining and quarrying, manufacturing, utilities, and waste management sectors using the International Standard Industrial Classification of Economic Activities.
This is despite the overall Industrial Production Index (IPI) reflecting a 14.1% decline year-on-year due to lower oil-related activity and weaker mining and quarrying output.According to the General Authority for Statistics (GASTAT), the non-oil activities showed stability compared to the previous year, supported by gains in manufacturing, utilities, and downstream industries.
GASTAT reported that while the index of oil activities decreased by 20% in March 2026 compared to the same month last year, the index of non-oil activities remained stable at a level close to its performance in the same period of the previous year.Additionally, the data showed a decrease in oil-related industrial activity amid global energy market turbulence.
OPEC+ production fell sharply in March, and the International Energy Agency (IEA) warned of supply disruptions removing millions of barrels per day from global markets, affecting industrial output across oil-producing economies.The mining and quarrying activity dropped 22.2% year-on-year and 36% month-to-month.
Manufacturing activity decreased by 4.7% annually, mainly due to lower production in coke and refined petroleum products as well as chemicals.
However, within manufacturing, basic metals saw a 9% increase year-on-year, paper and paper products rose by 2%, and non-metallic products edged up by 0.8%.
Beverage production also increased by 0.5%.Outside of manufacturing, electricity, gas, steam, and air conditioning supply activity surged by 10.1% annually and 4.3% month-to-month in March, while water supply, sewerage, waste management, and remediation activities rose 1.1% year-on-year and 2% compared to February.The IPI measures relative changes in industrial production volumes, capturing data from mining and quarrying, manufacturing, utilities, and waste management sectors using the International Standard Industrial Classification of Economic Activities.
