Saudi Arabia Industrial Output Falls 23.5% in August on Deep Oil Sector Contraction
Saudi Arabia recorded a 23.5% year-on-year decline in industrial output in August 2026, marking a significant slowdown from the revised 8.3% drop registered in July. On a month-over-month basis, industrial production contracted by 14.0%, reversing a revised 10.0% rise from the previous month.
The sharp downturn was primarily caused by the oil sector, which dropped 33.66% year-on-year following an 11.4% decline in July. Within the energy domain, crude petroleum and natural gas extraction contracted by 35.8%, while the output of coke and refined petroleum products decreased by 24.1%.
Non-oil economic activities provided slight relief, expanding 1.2% after shrinking 0.3% in July. Utility services saw stronger performance, led by a 9.4% gain in electricity, gas, steam, and air-conditioning supply, though overall manufacturing nudged down 0.3%. Market participants will monitor whether non-oil growth can stabilize broader industrial output amid ongoing energy sector volatility.
Key points
- Saudi Arabia year-on-year industrial output plunged 23.5% in August 2026, following a revised 8.3% decline in July.
- The oil sector contracted by 33.66%, driven by a 35.8% slump in crude petroleum and natural gas extraction.
- Refined petroleum products and coke output dropped 24.1% year-on-year during the month.
- Non-oil activities grew 1.2%, supported by a 9.4% expansion in electricity and gas utility supply.
- Month-on-month industrial production fell 14.0%, reversing a revised 10.0% gain in July.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
How much did Saudi Arabia industrial production fall in August 2026?
Saudi Arabia industrial output fell 23.5% year-on-year in August 2026, following an 8.3% decline in July. On a monthly basis, output dropped 14.0%.
Why did Saudi Arabia industrial output decline in August 2026?
The decline was driven by a 33.66% slump in the oil sector, as crude petroleum and natural gas extraction dropped 35.8% and refined petroleum products fell 24.1%.
Did non-oil activities grow in Saudi Arabia in August 2026?
Yes, non-oil activities grew 1.2% year-on-year in August, supported by a 9.4% rise in electricity, gas, steam, and air-conditioning supply, though manufacturing fell 0.3%.