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Last edited 22 Jan 2021
Cement market in Saudi Arabia
Cement is a one of the key binding materials used in the construction industry. Cement acts as a binding agent for mortar, concrete, non-specialty grouts, and stucco, etc. Physical and chemical properties of cement such as high durability, high dependability, cost-effectiveness, and versatility are favorable for construction applications. It is manufactured from raw materials such as limestone, sand, and clay, which are widely available in Saudi Arabia. In addition, cheap and widely available petroleum fuel has allowed cost-effective manufacturing of cement in the region.
The Saudi Arabia region demand for cement was valued at USD 3.90 billion in 2014 and is expected to reach USD 5.27 billion in 2020, growing at a CAGR of slightly above 5.1%. In terms of volume, the cement market in the Saudi Arabia stood at 61,000-kilo tons in 2014.
The key factor driving the demand for cement in Saudi Arabia is increasing construction activity in sectors such as commercial, residential, industrial and infrastructure. The rapidly growing population has resulted in growing demand for residential and commercial buildings as well as infrastructure. The residential market for cement in Saudi Arabia is expected to witness strong growth during the forecast period. Infrastructure is one of the largest segments, which accounted for around a 50% share of the total market in 2014. The increasing number of airports and road construction projects is expected to boost the cement market in Saudi Arabia further. Commercial applications were the second largest segment of the market in 2014.
The cement market was dominated by the Central region of Saudi Arabia, which accounted for more than 32% of the market in 2014. Saudi Arabia was followed by the Western, Eastern, Southern and Northern regions respectively. The cement market in the central region is expected to witness rapid growth compared to other regions. Over the past few years, there has been an increase in construction activities in the Saudi Arabia, especially in the eastern and central provinces. Various cities in the Kingdom have started infrastructure projects, fuelling demand for cement. Strong economic growth in Saudi Arabia is expected to fuel further growth.
Manufacturers have a significant impact on the value chain through a higher degree of vertical integration. These companies manufacture raw materials as well as the final product. Some of the key players operating in the Saudi Arabia cement market include; Saudi Cement Company, Riyadh Cement Company, Yamama Cement Company, and Najran Cement Company.
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