Infrastructure Investments Escalating Saudi Arabia Cement Demand

Release Date: 11-Jun-2013

Increasing investments in domestic infrastructure will drive the cement consumption in Saudi Arabia as per finding in research report “Saudi Arabia Cement Sector Analysis” published by KuicK Research. Next only to petroleum, the construction sector is amongst the most strong sectors in the Saudi Arabian economy and cement is the key element contributing to the growth of the construction sector. In its quest to move forward and diversify from a petroleum dependent economy, Saudi Arabia has identified and invested in many infrastructure projects and schemes in recent years. These initiatives have had the required impact, bringing in a supplementary boost to the construction sector, translating into many residential, commercial, industrial, and transportation projects.

The cement sector in Saudi Arabia benefits from the strong domestic market situation, buoyed by the government’s continued investment on infrastructure well supported by the favorable oil price movements. Other allied factors include a young demographic structure, increasing urbanization. The domestic producers enjoy a distinct competitive advantage, supported by the growing demand and the geographically distributed production setup.

The outlook for the Saudi cement industry to remains strong in near future. The government has issued licenses for new plants and additional capacity and also for mining of raw materials. Since cement is considered a strategic commodity, the government would do well to ensure that it is available for the country’s development needs as well as for the private requirements. However, preliminary indications regarding the number of licenses and volume of production, point to a situation of a large surplus in production not only in the country but also in the region. Even for the companies themselves they would need to undertake extensive studies before implementing the project plans.  

For More Information Visit: Saudi Arabia Cement Sector Analysis

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