<A recent report revealed that the continued weakness of the construction sector and the price level, in addition to the lack of inclusion of the cement industry in Saudi Arabia as a strategic industry, will significantly affect the profitability of cement companies in the future, adding that the outlook for the cement sector in Saudi Arabia is still unclear. Al Ahli Capital predicted that the cement industry in Saudi Arabia will be included among the strategic industries, similar to the iron and petrochemical industry, given the future housing and tourism projects that have been announced, protecting the local cement industry and preventing companies from closing down.
Al Ahli Capital's report added that the outlook for the cement sector in Saudi Arabia is still unclear. She said that the merger of small cement companies located in the same region will increase operational efficiency, reduce costs and reduce competition, expecting the market to witness the trend of companies to merge if the slowdown in the construction sector continues.
On the export of cement in Saudi Arabia as a strategic industry, similar to the iron and petrochemical industry, given the future housing and tourism projects that have been announced. On the export of cement, she said that the reduction of cement export duties has made exporting relatively feasible for companies but not highly profitable for them, given the prices of cement exported from Turkey and the UAE.
She pointed out that exporting cement from the UAE will increase operational efficiency, reduce costs, and reduce competition. She pointed out that the benefit of companies from exporting depends on their location, indicating that companies near the borders and potential export markets will benefit the most from exporting, including Yanbu Cement, Najran Cement, Northern Cement, Arabia Cement, Al-Jouf Cement, Tabuk Cement, and Umm Al-Qura Cement.
On the export of cement, she said that the reduction of export fees made it relatively possible for companies to export, but not very profitable for them.
