10th Middle East CemenTrade,

05-06 Oct, 2015 - Dubai, U A E

Pullman Deira City Centre Dubai

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  • Promotion Partner
    www.cementgroup.ir
  • Promotion Partner
    www.uaecement.com
  • Promotion Partner
    www.constructionshows.com
  • Promotion Partner
    www.construction1.com
  • Promotion Partner
    www.worldcement.com
  • Promotion Partner
    uaebusiness.com
  • Promotion Partner
    www.freightbook.net
  • Promotion Partner
    www.projectcargonetwork.com
  • Promotion Partner
    www.cargoconnections.net
  • Promotion Partner
    www.universalfreightorg.com

News Feed

Saudi Arabia Expects Cement Market Growth, Backed by Mega Projects

Posted on : 14 Sep, 2015

 

Saudi Arabia is a key cement producer and consumer in the Middle East. Cement sales in 2015 are expected to rise with improved demand.

 

Saudi Arabia currently has trillions of dollars of projects in the pipeline including the Jeddah Metro, expansion of the Prophet's Mosque in Medina to name a few.

 

The country’s cement market is keeping up with the pace of development in the construction sector. It’s believed that the country has sufficient cement production capacity to meet the demands of the construction sector. In 2015 , the country had almost 60 million tons of cement production capacity, and next year more than 5 million is expected to be added. By 2017 it’s estimated that Saudi Arabia will have over 70 million tons of cement capacity – which is almost double the production capacity of the UAE and Qatar put together.

 

Despite sufficient capacity to meet demand, the market is facing challenges of price competition, especially in the Western region.

 

The Western region faces stiff competition as it’s the largest market in the country with four major cities: Jeddah, Mecca, Medina, and Ta'if with the highest population in the Kingdom. All cement producers – new and old, big and small are dumping their products in this region which is creating price competition.

 

The country has approximately 15 cement companies. Yanbu cement is the third biggest cement company in Saudi, in terms of production, sales and revenues with current market capitalization of almost USD 3 billion. It is the leader in the Western region market.

 

This year Yanbu Cement signed an agreement with China’s Sinoma Energy to install a waste heat recovery system. Yanbu is planning to increase sales, hence requires more clinker grinding. In order to increase the availability of grinding mills, more electricity is required. The tie up with Sinoma will help produce 34 megawatts of electricity – which is the largest of its kind for the cement industry in the world. The project is environment friendly as carbon emissions will be reduced by more than 100,000 tons.

 

Yanbu’s cement will be used in the expansion of the Prophet's Mosque in Medina. The company is also eyeing the mega project – Jeddah metro – which is in design stage currently and contract execution is expected in 2016.

 

‘Saudi’s Construction Sector Outlook & Cement Consumption Analysis’ will be addressed by Fadi Mujahed, Chief Commercial Officer, Saudi Readymix Concrete at 10th Middle East CemenTrade Summit scheduled on 5-6 October, 2015 in Dubai, UAE.

 

Contact Ms. Grace at grace@cmtp.com.sg or call +65 6346 9147 for more details about 10th Middle East CemenTrade summit.

 

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