Riyadh | BETH
21 Shawwal 1447 AH | April 9, 2026

The Industrial Production Index (IPI) in the Kingdom of Saudi Arabia recorded an annual growth of 8.9% in February 2026, reflecting continued industrial momentum and the expansion of the production base, supported by a notable increase in both oil and non-oil activities.

Data from the General Authority for Statistics showed that the increase was driven by growth across several key sectors, with mining and quarrying activity leading performance with a 13.0% year-on-year rise.

Manufacturing activity also recorded growth of 3.6%, while water supply, sewerage, waste management, and remediation activities increased by 8.1%, reflecting the expansion of infrastructure and services associated with urban and industrial growth.

In contrast, electricity, gas, steam, and air conditioning supply activity declined by 3.7% year-on-year, marking a deviation from the overall upward trend.

At the level of main economic activities, the oil sector index rose by 11.5%, while non-oil activities recorded a 2.4% annual increase, reflecting a continued relative balance between the two sectors, with oil remaining a primary driver of industrial growth.

The Industrial Production Index (IPI) is an economic indicator that measures relative changes in industrial output volumes, based on a periodic survey of establishments operating in sectors such as mining, manufacturing, energy, water, and waste management.

BETH Analysis

The figure is not just read as growth… but as direction.

The Saudi economy is not moving along a single path, but along two parallel tracks:
strengthening the oil sector, and building a non-oil industrial base that is steadily advancing.

Although oil still leads the increase, the continued growth of non-oil activities reflects a structural transformation that is taking shape quietly, away from noise.

Saudi industry is not only growing…
it is reshaping itself within a more diversified and sustainable economy.