Saudi Arabia recorded a 15.6% Industrial Recovery in September, as mining and quarrying activity drove monthly industrial growth. However, production remained below its level from the previous year, according to official statistics.
The General Authority for Statistics (GASTAT) reported an Industrial Production Index of 101.3 in September. This marked a significant increase from August’s reading of 87.7. Nevertheless, the index remained 10.9% lower than September 2025.
Mining and quarrying provided the strongest contribution to the monthly improvement. Activity in this sector increased by 29.9% compared with August. Meanwhile, manufacturing output recorded more moderate growth, rising by 2.8%.
Manufacturing gains reflected stronger production across selected industrial activities. In particular, manufacturing of coke and refined petroleum products increased by 7%. Chemical and chemical product manufacturing also recorded growth, although at a slower rate of 0.8%.
GASTAT attributed the monthly manufacturing improvement to these two sectors. However, other industrial categories recorded declines during September. Electricity, gas, steam and air conditioning supply fell by 1.2%. Water supply, sewerage and waste management activities also decreased by 0.4%.
Vijay Valecha, chief investment officer at Century Financial, highlighted mining and quarrying as major contributors. He said stronger activity in these sectors played an important role in September’s industrial performance.
Valecha also pointed to crude oil and gas extraction as significant influences. Saudi Arabia has expanded alternative shipping arrangements and increased the use of routes through Yanbu. These measures have helped maintain oil exports amid regional energy market disruptions.
Furthermore, he noted that manufacturing supports Saudi Arabia’s broader economic diversification strategy under Vision 2030. Local production of pipes, cables, energy equipment and building materials helps reduce reliance on imported goods.
Industrial development has also created opportunities for smaller businesses and investors. Ready-built factory facilities can make market entry easier for small and medium-sized enterprises. In addition, established industrial zones provide infrastructure for manufacturing, storage and distribution.
Among these developments are King Salman Energy Park and King Abdullah Economic City. Valecha also identified industrial areas developed by Modon as important investment locations. The National Housing Company Industrial City and Logistics Zone also support domestic supply chains.
Similarly, KAEC’s King Salman Automotive Cluster brings together industrial activities and supporting logistics. These developments aim to strengthen local production networks and improve connections between manufacturers and distributors.
Despite the monthly improvement, annual figures showed continued pressure across major industrial sectors. GASTAT reported that mining and quarrying activity declined by 16% compared with September last year. Manufacturing also recorded an annual decrease of 5.4%.
Within manufacturing, coke and refined petroleum product production fell by 13.6%. Chemical and chemical product manufacturing also declined by 3.8%. These figures show that September’s Industrial Recovery has not yet reversed the wider annual contraction.
Other industrial activities recorded stronger annual results. Electricity, gas, steam and air conditioning supply increased by 6.4%. Meanwhile, water supply, sewerage and waste management activities rose by 7.3%.
The difference between oil and non-oil performance also remained clear. The oil activities index fell by 15.5% year on year in September. However, the non-oil activities index recorded a modest annual increase of 0.1%.
Monthly figures presented a more positive picture for both categories. Oil activities increased by 24.7% compared with August. Non-oil activities also expanded, recording a monthly rise of 0.6%.
Overall, September’s figures indicate a strong monthly rebound alongside continuing annual challenges. Mining activity provided the main boost, while manufacturing delivered more limited growth. Meanwhile, non-oil industries maintained slight annual expansion, reflecting gradual diversification within Saudi Arabia’s industrial economy.
