FX.co ★ Saudi Arabia Industrial Output Slumps 23.5% in August

Industrial production in Saudi Arabia slumped 23.5% year-on-year in August 2026, deepening from an upwardly revised 8.3% decline in July. The oil sector contracted sharply by 33.66%, compared with an 11.4% fall in the previous month, driven by steeper drops in both crude petroleum and natural gas extraction (-35.8% vs. -10.9%) and the production of coke and refined petroleum products (-24.1% vs. -13.6%).

This substantial decline was partly cushioned by stronger growth in other economic activities, whose output expanded 5.1% (up from 3.4%). Within this segment, electricity, gas, steam, and air-conditioning supply accelerated markedly (9.4% vs. 4.5%), while water supply, sewerage, waste management, and remediation activities grew at a slightly slower pace (7.4% vs. 7.8%).

The downturn was also mitigated by a return to growth in non-oil activities, which rose 1.2% year-on-year after a 0.3% decline in July, although manufacturing output edged down by 0.3%. On a monthly basis, total industrial production dropped 14.0% in August, swinging from a downwardly revised 10.0% increase recorded in July.