# Saudi Arabia Industrial Production Drops 23.5% Year-Over-Year in August

- URL: https://stocks.freetheai.org/news/saudi-arabia-industrial-production-drops-23-5-year-over-year-in-august-13b92f
- Published: 2026-10-12T10:41:13Z
- Category: macro; sentiment: bearish; impact: medium
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Saudi Arabia saw a steep decline in industrial output in August, with the overall index falling 23.5% compared to the same month last year. On a monthly basis, industrial production dropped 14% from July 2026. Lower output in mining, quarrying, and manufacturing led the overall decrease.

The downturn was heavily driven by a drop in oil-related sectors. The index for oil activities fell 33.6% year-over-year and dropped 21.5% compared to July 2026. In contrast, non-oil sectors showed modest growth, expanding 1.2% year-over-year and 1.4% month-over-month, highlighting a split between oil and non-oil segments of the economy.

Market participants will monitor coming monthly industrial output figures to see whether oil activities stabilize or continue to weigh down overall performance. Key focus areas include whether non-oil growth can maintain momentum to support broader economic performance.

## Key points

- Saudi industrial production fell 23.5% year-over-year and 14% month-over-month in August.
- Oil activities declined 33.6% from August of the previous year and 21.5% from July 2026.
- Non-oil activities grew 1.2% year-over-year and 1.4% compared to the previous month.
- Mining, quarrying, and manufacturing activities weighed down overall industrial output.

## Questions and answers

### How much did Saudi Arabia industrial production drop in August?

Saudi industrial production dropped 23.5% year-over-year in August and declined 14% compared to July 2026.

### What caused the drop in Saudi industrial activity in August?

The decline was driven by a 33.6% year-over-year fall in oil activities, alongside weaker mining, quarrying, and manufacturing performance.

### Did Saudi non-oil activities grow in August?

Yes, non-oil activities increased 1.2% compared to August of the previous year and 1.4% compared to July 2026.