SAUDI ARABIA CEMENT MARKET

KEY FINDINGS

• The Saudi cement market is likely to grow due to increased government spending on construction activities, driven by a surge in GDP fueled by economic reopening and rising oil prices in 2023. 

• The rapid urbanization in Saudi Arabia is driving increased demand for housing and infrastructure, boosting growth prospects for the cement market in the country. As construction activities surge, the Saudi cement market is expected to experience significant expansion. 

• Construction of Megaprojects under “Vision 2030” to boost demand for cement in Saudi Arabia. 

• Around 14% of the total expenditure , amounting to SAR 157B out of 1.14 trillion, has been market by the Saudi government for capital expenditure, reflecting year on year growth 4.7%, leading to increased demand for cement. 

• As the population rate of Saudi Arabia is increasing with the annual rate of 2.5 % according to the IMF, reaching 36.92mn in 2025. As a young and expanding population leads to increased demand for housing, which will lead to increase in demand for cement. 

• The unemployment rate in Saudi Arabia has fallen to 8% in 2022, from 11.7% in 2021, giving locals greater purchasing power and potentially boosting demand for housing. This will ultimately increase the demand for cement, which is a crucial raw material for housing construction. 

• Numerous companies are embracing new technologies to enhance production efficiency, aiming to decrease power usage and minimize environmental footprints. Simultaneously, others are innovating products and services to align with changing customer demands. 

• The Saudi Cement saw a slight rise in cement price from SAR 13.69 to SAR 13.93 per 50 kg bag in 2023 but remains below the peak of SAR 14.24 in 2020, attributed to surplus inventory. Anticipated future growrh demand is expected to reduce inventory levels and drive-up cement prices. 

• The cement industry in Saudia Arabia has a huge compitition, as companies fight for market share with price battles and aggressive marketing. The industry faces challenges like lack of skilled workers, high energy cost and uncertain regulations.

INTRODUCTION

Cement is a binder, a chemical used in construction that binds things together by setting, hardening, and adhering to them. In most cases, sand and gravel are combined with cement rather than being utilised on their own.

Mortar for masonry is made from cement mixed with fine aggregate, and concrete is made from cement combined with sand and gravel. The second most utilised resource on the globe after water is concrete, which is the most often used substance in existence.

According to their unique setting and hardening methods, non-hydraulic cements and hydraulic cements are two distinct groups of cement materials. While non-hydraulic cements simply react with a gas and can set under air, hydraulic cement setting and hardening incorporates hydration reactions and as a result needs water.

SAUDI ARABIA CEMENT MARKET SIZE AND FORECAST

The Saudi Arabia Cement Market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030. 

SAUDI ARABIA CEMENT MARKET RECENT DEVELOPMENT

White cement is becoming more and more in demand across the globe. Demand is being driven by rising construction activities, particularly in emerging markets. Since of its reflective qualities, white cement is particularly desired in nations with generally hot climates because it tends to keep structures cooler. 

Additionally, white cement is frequently employed in the construction of cutting-edge structures and significant monuments as a high-quality, value-added product. Alsafwa Cement Company, situated in Saudi Arabia, is one such manufacturer and has just given FLSmidth a contract to upgrade one of its grey cement kiln lines. A dual white and grey cement production plant will need to be created, which will need the cost-effective modification of existing equipment.

FLSmidth has carried out several comparable grey-to-white conversions in recent years, including for the Riyadh Cement Company in Saudi Arabia, and adds a wealth of experience and expertise to this project. Therefore, it should come as no surprise that many cement manufacturers believe the moment is ripe to expand the amount of white cement they can make.

Leading Saudi industrial organization Southern Province Cement Company (SPCC) has begun construction on a new plant in the Jazan region of the country, which will have a total daily capacity of 5000 tonnes.

SAUDI ARABIA CEMENT MARKET NEW DEVELOPMENT

SAUDI ARABIA CEMENT MARKET COMPANY PROFILES

• Al Hokair Group 
• Al Tayer Group 
• Dur Hospitality company 
• Inter Continentals hotels group 
• Accor S.A 

SAUDI ARABIA CEMENT MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS 

1. Average cost to set up a Cement manufacturing unit in Saudi Arabia?
2. How many tons of Cement are manufactured per annum in Saudi Arabia? Who are the raw material suppliers in this regions?
3. Cost breakup of a  Cement market in Saudi Arabia and key dealer selection criteria
4. Where is the Saudi Arabia Cement are manufactured? What is the average margin per bag ?
5. Market share of Saudi Arabia Cement manufacturers and their upcoming products
6. Details on network of major Saudi Arabia Cement market and pricing plans
7. Cost advantage of who manufacture Cement  in-house
8. 5 key predictions for next 5 years in Saudi Arabia Cement market
9. Average B-2-B Saudi Arabia Cement price in all segments
10. Latest trends in Saudi Arabia Cement market, by every market segment
11. The market size (both volume and value) of Saudi Arabia Cement in 2023-2030 and every year in between?
12. Global production breakup of Saudi Arabia Cement market, by suppliers and their manufacturers relationship