Saudi cement exports account for 40% of demand in Bahrain market

Posted in

A number of investors in the cement sector revealed that the Kingdom’s exports cover approximately 40 % of the demand in the Bahraini market, where consumption last year reached 1.7 million metric tons, and this consumption is expected to reach 2.200 million metric tons by the end of this year, representing a 30% increase in consumption.

Several factors contribute to Saudi cement’s competitive advantage, including the proximity of its production sites to Bahrain—particularly those in the Eastern Province—and the fact that one of the producers owns a dedicated berth at the Port of Dammam, which expedites shipping operations, allowing for the transport of 3,500 metric tons per shipment.

According to cement importers and consumers in the Kingdom of Bahrain, the cost of sea transport via this berth is significantly lower than that of land transport, which takes up to 7 days for the shipment to arrive and has a capacity not exceeding 30 metric tons, whereas a sea freighter transports 3,500 metric tons in a single shipment.

They expect cement prices in Bahrain to rise by the end of this year as a result of the Saudi government opening up exports of this product to all countries worldwide, which in turn will lead to longer waiting times for ocean-going vessels at the cement export terminal in the Port of Dammam and increase shipping costs for importers to an amount exceeding the value of the cement itself.