Kingdom
Manufacturing Industry: An Increase in Production Expected in the First Quarter
This development would mainly be attributable to a rise in activity in the food industry, the chemical industry, and the manufacture of metal products, excluding machinery and equipment.
Manufacturing companies expect an increase in production in the first quarter of 2026, according to the HCP.
This growth would be driven by increased activity in the food industry, the chemical industry, and the manufacture of metal products.
However, a decline is expected in the automotive industry and in the manufacture of non‑metallic mineral products.
Employment in this sector is expected to record a slight increase.
Conversely, the extractive and energy industries anticipate a drop in their production, notably due to the expected decline in phosphate and electricity production.
The environmental industry, for its part, is expected to remain stable.
The HCP indicates that in the fourth quarter of 2025, manufacturing production increased, with a capacity utilization rate of 74%. However, 35% of companies reported difficulties in the supply of raw materials and 18% of business leaders considered their cash flow to be difficult.
