Saudi Industrial Production Growth Slows to 8.9% in December as Non-Oil Activities Accelerate

Riyadh | EcoPulse24

Industrial production in Saudi Arabia recorded an annual growth rate of 8.9% in December 2025, decreasing from a three-year peak of 10.4% in November. This slowdown reflects a deceleration in oil activities, while non-oil activities contributed more significantly.

Data showed that oil activities continued to grow, but at a slower rate of 10.1% versus 12.9% in the previous month. This was affected by a 3.6% decline in coke and refined petroleum products output after a strong 14.5% surge in November, despite ongoing momentum in crude oil and natural gas extraction, which rose 13.2% compared to 12.6% previously.

Conversely, non-oil activities accelerated to 5.8% from 4.4% in November, despite a slowdown in manufacturing sector growth to 3.2% from 8.1%. Growth in water supply, sewage, and waste management activities edged down to 9.4% from 10.2%. The contraction in electricity, gas, steam, and air conditioning supply eased to -2.5% from -4.3%.

On a monthly basis, industrial production declined by 0.1% in December, showing improvement compared to a revised 1.3% drop in November 2025.

EcoPulse24 Analysis

The slowdown in industrial production growth reflects the ongoing rebalancing within Saudi Arabia's industrial sector, with momentum gradually shifting from oil to non-oil sectors. While fluctuations in petroleum derivatives have influenced overall performance, the acceleration in non-oil activities underscores the robustness of industrial diversification and domestic demand support. Industrial performance is expected to hinge on the balance of energy output and the manufacturing sector's ability to regain momentum in the first quarter of 2026, especially amid relative stability in global energy markets.