Saudi Arabia's cement sector. Recovery driven by domestic demand and a shift towards sustainable production

Saudi Arabia's cement sector is rebounding, driven by domestic demand, mega projects and a shift towards sustainable production.

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The cement sector is witnessing a clear recovery phase in Saudi Arabia supported by the acceleration of major development projects that come within the framework of the Kingdom's Vision 2030, where domestic demand for cement has increased over the last two years supported by the expansion of housing projects, modern suburbs and infrastructure works.

Growth in sales and production

Sales of Saudi cement companies during the third quarter of 2024 amounted to 12.84 million tons, up 4.9TP3T compared to the same period in 2023, including 96% domestic sales, according to press reports, while the “Global Cement” report issued in January 2025 indicated that sales of the cement sector increased by 12% during the fourth quarter of 2024, reaching 14.87 million tons, bringing the total sales of the year to about 51.2 million tons.

Global Cement report issued in January 2025 indicated that the sales of the cement sector increased by 12% during the fourth quarter of 2024, reaching 14.87 million tons, bringing the total sales of the year to 51.2 million tons. <During the first five months of 2025, sales recorded further growth of 13.1% year-on-year, reaching around 22.5 million tons, and during June 2025, sales reached around 4.1 million tons, up 14% from the same month last year. The total sales of Saudi Arabia's 17 cement companies increased by 7% during October 2025 to reach 5.2 million tons, compared to sales of 4.9 million tons achieved during the same month in 2024, according to data released by Yamama Cement.

Major projects support the market

This growth in Saudi Arabia's cement sector is linked to the accelerated implementation of major national projects such as NEOM, Qiddiya and the Red Sea project, in addition to infrastructure, roads and housing projects in various regions, with demand in the Saudi market rising by 8.5 % during the first quarter of 2025 driven by increasing construction activity, according to a report by CemNet specialized in the cement industry.

CemNet.

Shift towards low-emission production

Saudi City Cement, in collaboration with Nizak Mining Co. and a British partner, has announced a project to produce low-emission cement additives in an effort to reinforce the national drive towards sustainability and support carbon neutrality targets by 2060.

This growth coincides with a clear trend towards reducing the industry's carbon footprint. Industry experts expect the demand for cement to continue to rise over the next five years, enhancing the Kingdom's competitiveness in the regional and global building materials market, in conjunction with the expansion of government and private projects and the adoption of modern technologies in construction, while companies are working to raise production efficiency, control costs, and invest in renewable energy solutions.

Industry experts expect the demand for cement to continue to rise over the next five years, enhancing the Kingdom's competitiveness in the regional and global building materials market.