Cement demand in Saudi Arabia is projected to experience a significant rebound, following a 9 percent decline in 2023, which saw demand drop to 47.26 million tonnes. This recovery is expected to be driven by the ongoing boom in giga projects and infrastructure development across the Kingdom, according to City Cement Company, which is listed on the Tadawul stock exchange.
City Cement Company highlighted in its latest sustainability report for 2023 that the surge in construction activities, fueled by major projects such as Qiddiya, Diriyah Gate, NEOM, The Red Sea Project, and AMAALA, will generate substantial demand for cement. These developments are key components of Saudi Arabia’s Vision 2030, which aims to transform the country’s economy by emphasizing large-scale infrastructure and urban development.
As part of this ambitious vision, the government is investing heavily in infrastructure, tourism, and entertainment sectors, all of which require vast amounts of construction materials, particularly cement. The rapid progress of these giga projects, many of which are already in various stages of construction, is expected to create a steady and increasing demand for cement, benefiting producers like City Cement Company.
Additionally, the company pointed out that the growth of the housing mortgage sector in Saudi Arabia is another critical factor that will drive the demand for cement. As more citizens secure mortgages and pursue home ownership, the construction of new residential buildings is expected to escalate, further boosting the need for cement. This trend aligns with the government’s efforts to increase homeownership rates in the Kingdom, as part of its broader economic and social reforms under Vision 2030.
Overall, the outlook for cement demand in Saudi Arabia appears positive, with the combination of giga projects and a growing housing sector poised to stimulate significant growth in the industry. This rebound not only reflects the country’s robust development agenda but also underscores the essential role that cement will play in shaping the future of Saudi Arabia’s urban and economic landscape.
