RIYADH — Saudi Arabia’s cement industry posted strong growth in the second quarter of 2025, with total sales by the Kingdom’s 17 producers hitting 13.13 million tonnes, up 21% year-on-year, according to data from Al-Yamama Cement.
Local demand drove the surge, accounting for 97% of all shipments and rising 23% from the same period last year. Exports, however, fell 16%, making up just 3% of total sales.
Industry expert Amr Nader, CEO of UAE-based advisory A³&Co., attributed the jump to megaproject momentum in Neom, ROSHN, Diriyah, and The Line, alongside seasonal buying ahead of Ramadan and Hajj. Contractors accelerated purchases to avoid holiday slowdowns, while some firms cleared inventories before summer fuel price adjustments.
Top Performers
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Al-Yamama Cement led the market with 1.93 million tonnes sold locally (15.2% share).
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Saudi Cement followed with 1.36 million tonnes, Qassim Cement with 1.14 million tonnes, and Yanbu Cement with 1 million tonnes.
Exports Struggle
Saudi Cement remained the top exporter at 376,000 tonnes, but overall exports were hit by rising competition in East Africa and Yemen, export quotas, freight disruptions in the Red Sea, and regulatory delays in markets like Sudan and Somalia.
Clinker Boom
Clinker output rose 12.6% to 14.80 million tonnes, with Saudi Cement producing 2.15 million tonnes. Clinker exports surged 39% to 1.63 million tonnes, driven by high global prices and easier shipping compared to bagged cement.
Prices Stay Competitive
Retail cement prices in Saudi Arabia remain among the region’s lowest — SR12.5 to SR14 per 50-kg bag — thanks to fuel subsidies and domestic overcapacity. However, profit margins fell to 22–25% from last year’s 26–30% due to higher fuel and logistics costs.
Only the most efficient producers, such as Southern Cement and Eastern Province Cement, managed to maintain profitability by leveraging strong export channels and fuel optimization.
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