RIYADH: Cement sales in Saudi Arabia in Q2 2024 went up to 10.85 million tonnes, with 95% sold domestically while the 5% exported. Al-Yamama Cement held 12% market share while Qassim Cement took the second position with 10% market share. The cement market value reached $ 1.07 billion in 2023 with an average growth of 6.10% through 2029, due to the infrastructure projects linked to Vision 2030.
Riyadh Metro, NEOM, Qiddiya and various such large projects are driving this demand. Umm Al-Qura recorded the most impressive growth with an increase of 68% in sales. Saudi Cement were the highest with 79% of the total exports, even though the export volumes decreased.
Riyadh market remains as the key market due to the increasing rate of urbanization and being a financial hub. New Technological trends such as Industry 4.0 and green cement are revolutionizing the industry. Companies are utilizing smart factory solutions to enhance efficiency as well as adopting the utilization of sustainable production techniques, with an aim to minimize carbon emission.
The French firm Hoffmann Green Cement is developing its first low-carbon cement manufacturing plant in Saudi Arabia, in partnership with Shurfah Group. The NEOM project with initiatives such as Jaumur Community and Luxury Resorts are still under construction, driving more demand for cement.
However, challenges in the cement industry are emerging such as regulatory measures involving environmental issues and excessive cement production. Overcapacity combined with price volatility affects overall profitability, particularly during economic downturns. In order to lessen these challenges, companies should practice sustainable ways, invest in pollution control and keep production in line with the demand. Long-term growth heavily depends on proper risk management and collaboration between key players in the industry.
