The General Authority for Statistics in the Kingdom of Saudi Arabia reported a significant growth in the industrial production index of 8.9% during February 2026 compared to the same month in 2025. This growth was fueled by an increase in mining and quarrying activities, as well as manufacturing, alongside water supply, sewage, and waste management activities. However, the index recorded a slight monthly decline of 0.2%.
Preliminary results indicated that mining and quarrying activities led this growth, with the sub-index for this sector rising by 13% year-on-year. This increase is attributed to the rise in oil production in the Kingdom, which reached 10.1 million barrels per day in February 2026, compared to 8.9 million barrels per day in the same month of the previous year. The sector also recorded a monthly increase of 0.1%.
Details of the Event
In terms of manufacturing activities, there was an annual increase of 3.6%, supported by growth in the production of coke and refined petroleum products by 5.2%, in addition to the production of chemicals and chemical products by 4.5%. However, the activity saw a monthly decline of 0.2% due to a decrease in these activities.
The data also showed a decline in the index of electricity, gas, steam, and air conditioning supply activities by 3.7% year-on-year, while the index for water supply, sewage, and waste management activities increased by 8.1%. On a monthly basis, both indices decreased by 3.9% and 4.1% respectively.
Background & Context
Saudi Arabia is considered one of the leading countries in oil production, with mining and quarrying activities playing a vital role in the national economy. The industrial production index reflects changes in the volume of industrial output and is based on monthly survey data that includes mining, manufacturing, energy, and water activities, according to the national classification of economic activities.
These figures come in the context of the Kingdom's efforts to diversify its economy and reduce dependence on oil, as it seeks to enhance various industrial sectors. The government has launched several initiatives to support local industry and stimulate economic growth.
Impact & Consequences
This increase in industrial production indicates a notable improvement in the Saudi economy, reflecting the success of the economic policies in place. Furthermore, the growth in mining and manufacturing activities reflects the increasing demand for industrial products, which may lead to the creation of more job opportunities.
However, policymakers must monitor the monthly changes that indicate a slight decline in some activities, necessitating appropriate measures to ensure sustainable growth in the future.
Regional Significance
These results are significant not only for the Kingdom but also for the Arab region as a whole, as they reflect economic trends in the largest economies of the region. These figures may influence foreign direct investment in the Kingdom, enhancing its status as an industrial hub in the region.
In conclusion, these figures reflect the Kingdom's commitment to achieving the goals of Vision 2030, which aims to enhance economic growth and diversify income sources.