Saudi cement sales exhibited growth in 2QFY24

Saudi Arabia's cement industry recorded a 1.8 per cent sales growth in the 2Q124, reaching 10.85Mt. Al-Yamama Cement's data showed that 95 per cent of these sales were domestic, with only five per cent being exported. The data covers 17 Saudi cement companies, with Al-Yamama holding the largest share of domestic sales at 12 per cent, amounting to 1.28Mt, despite a seven per cent decline during the period. According to a local media report, Qassim Cement followed with a 10 per cent share, selling 1.06Mt domestically.

Saudi Cement, Yanbu Cement, and Southern Province Cement each held a nine per cent share of the domestic market in the 2Q24, with sales of around 920,000t each. The highest growth in domestic sales was recorded by Umm Al-Qura Cement, which saw a 68 per cent increase to 371,000t during this period despite holding a relatively small four per cent market share. Hail Cement’s sales rose by 49 per cent to 407,000t, while City Cement experienced a 45 per cent increase, reaching 617,000t.   

The country’s ambitious Vision 2030 initiative, emphasising infrastructure development across transportation, utilities, healthcare and tourism, is a major driver of the cement industry’s growth. Large-scale projects, including the Riyadh Metro and mega-projects like NEOM and Qiddiya, significantly boost demand, reinforcing its vital role in Saudi Arabia’s construction industry.

In terms of exports, Saudi Cement dominated with 79 per cent of total shipments, amounting to 404,000t this quarter, though this figure represents a 16 per cent decrease compared to last year. Najran Cement accounted for 13 per cent of exports for the quarter, totalling 66,000t, marking a 16 per cent increase. Eastern Cement saw a 27 per cent rise, reaching 42,000t.