2023. Driven by Saudi Arabia's Vision 2023, infrastructure in areas such as transportation and utilities is expected to grow significantly, becoming the main driver of future demand growth in the cement industry. It is predicted that by 2029, the market value of Saudi Arabia's cement industry will grow at a compound annual growth rate of about 6.1%. In the second quarter of
2024, Saudi Arabia's cement sales reached 10.85 million tons, up 1.8% year-on-year. Among them, domestic sales accounted for 95%, and only 5% of cement was exported. According to the disclosed data, Al-Yamama has the largest share in Saudi Arabia's domestic market, with sales volume reaching 1.28 million tons, accounting for 12%; followed by Qassim Cement, with sales volume of 1.06 million tons, accounting for 10% of the domestic share; Followed by Saudi Cement, Yanbu Cement and Southern Cement, the sales volume of cement in the domestic market is about 920,000 tons, accounting for 9% of the market share respectively. In addition, Umm Al-Qura Cement, Hail Cement and City Cement grew rapidly, with cement sales of 370,000 tons, 410,000 tons and 620,000 tons respectively, with year-on-year growth rates of 68%, 49% and 45% respectively. On
the export side, Saudi Cement exported 400000 tons of cement, down 16% year-on-year, accounting for 79% of Saudi Arabia's total cement exports in the second quarter. Najran Cement and Eastern Cement grew faster in terms of cement exports, with exports reaching 66,000 tons and 42,000 tons, respectively, up 16% and 27% year-on-year.
Although Saudi Arabia's cement industry is expected to grow strongly, there are some challenges at present. Saudi Arabia currently enforces strict environmental regulations to reduce the impact of industrial activities on air quality, water, and the diversity of life. Cement companies must meet emission limits for pollutants such as particulate matter, nitrogen oxides and sulfur dioxide, requiring large investments in pollution control technology, which increases the operational complexity and cost of cement producers.
With increasing awareness of environmental impacts and regulatory pressures, cement companies in Saudi Arabia are turning to sustainable development by applying green cement technologies to reduce carbon emissions and minimize their ecological footprint.