Concrete Plans for Regional Cement Despite Saudi Dip




    A recent report by Al Rajhi Capital showed Saudi Cement sector sales volume falling 21% yoy in May. Total cement dispatches in the Kingdom fell 21.4% yoy to 4.51mn tons in May. Total inventories continued to rise 39% yoy to reach 29.7mn. In May, all listed cement companies reported yoy decline in sales volumes. Notably, exports to Bahrain halted for the third month in row as compared to 90k tons of exports in May 2016. In the first five months of 2017, cement sales volume fell 18.7% yoy to 22.6mn tons, while clinker production declined 11.3% yoy.  

    According to Technavio research, the global cement market is anticipated to grow at a steady rate and will post a CAGR of more than 9% to 2021 spurred on by the increasing use of energy efficient technologies. The APAC region and residential end-user projects accounted for the majority market share during 2016 and will increase in the next four years. According to Center for Management Technology, the GCC region’s population is expected to grow at a CAGR of 2.5% between 2014-18 to reach 57 million, creating a solid base for regional cement demand expansion over the mid- to long term. Iran has big plans having announced that cement output would reach 120 million tons annually till 2025. Overseas sales were projected to increase to 32 million tons per year over the next decade.  

    The August / September 2017 issue of Arab Construction World (ACW) magazine covers a range of interesting articles and news. The article on page 10 sheds light on the HVACR market in the Middle East. The market’s volume is expected to reach 10 million units by 2022. Page 13 tells us about the global floors and ceilings sector, while on page 36, Oman’s construction sector accounts for 6% of Oman’s GDP. Your comments and remarks are appreciated so please don’t hesitate to contact us through our email content@cph.world

    Fathi Chatila
    Editor-in-Chief