Saudi Arabia's non-oil industrial activities recorded a 2.1 percent annual increase in April, bucking the broader decline in factory and mining output that pulled the Kingdom's Industrial Production Index (IPI) down by 6.8 percent from March, according to official data.
Industrial Production Index Falls
Preliminary figures from the General Authority for Statistics (GASTAT) revealed that the IPI dropped to 84.9 in April, down from 91 in March and 104.9 in the same month of the previous year. The decline was largely driven by weaker mining and manufacturing activity. Mining and quarrying output fell 9.3 percent month on month, while manufacturing activity decreased by 4.8 percent.
Impact of Regional Conflict
The latest figures emerge as the US-Iran conflict continues to weigh on industrial activity across the Middle East. Qatar also reported a sharp 64.4 percent decline in output in March following the outbreak of hostilities in late February.
Monthly Declines in Key Sectors
On a monthly basis, the manufacturing sub-index declined by 4.8 percent, influenced by a 6.1 percent drop in the manufacture of coke and refined petroleum products and a 9.7 percent decrease in chemicals and chemical products, GASTAT said. Oil-related activities fell 8.7 percent month on month, while non-oil activities decreased by 3.2 percent from March.
Annual Performance
Year on year, Saudi Arabia's IPI declined 19.1 percent in April, primarily due to a 29.9 percent drop in mining and quarrying, a sector with significant weight in industrial output. Manufacturing activity also posted a 6.1 percent annual decline, driven by an 18.7 percent drop in coke and refined petroleum products. Chemicals and chemical products fell 4.2 percent.
Segments Showing Growth
Despite the overall downturn, several manufacturing segments recorded growth. Basic metals rose 10.4 percent year on year, non-metallic mineral products increased 5.7 percent, paper and paper products grew 2.8 percent, and furniture edged up 2.1 percent. The electricity, gas, steam, and air-conditioning supply sub-index recorded an annual increase of 20.8 percent compared to April 2025.
Oil activities declined 27.8 percent annually, while non-oil activities increased by 2.1 percent. The IPI measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management.
