In 2025, Saudi Arabia's cement industry was filled with positive expectations. With the continuous promotion of major projects related to Saudi Arabia's "Vision 2030" and the strong support of the government's increasing expenditure on infrastructure and housing, the industry as a whole has shown a positive trend.
From the demand side, domestic demand is expected to usher in growth. Although Saudi Arabia's major cement companies have slightly different forecasts for the growth rate of domestic cement demand in 2025, they are all optimistic. Among them, Saudi Cement expects annual demand growth to be between 6% and 8%, and demand growth in the first quarter is expected to be as high as 10%, given the strong impetus of many major projects in Riyadh, the capital. Similarly, Yamamin Cement expressed a positive view in its annual report, forecasting an annual growth rate of 7% in demand. This is mainly due to its role as a major supplier of cement and derivatives for a number of key strategic projects (such as the Euler and Red Sea projects, as well as Saudi Arabia's preparations for the 2030 World Expo and the 2034 World Cup), which has strongly consolidated the expectation of sustained growth in domestic cement demand in the coming years.
On the export side, the expansion has been particularly strong. Saudi cement exports will soar to 8.5 million tons in 2025, compared with 2 million tons in 2024, an increase of nearly 325% year-on-year, which is an extraordinary leap. This reflects the strong interest and firm determination of cement enterprises to expand overseas market share.
However, on the production side, the pace of expansion is relatively cautious. It is estimated that the actual output of Saudi cement industry will reach 57.5 million tons in 2025, which is only slightly higher than previous year. Meanwhile, production capacity is expected to be 102.5 million tons, up only slightly from 97.3 million tons in 2024.
Saudi Cement has further reinforced its optimistic stance with notable achievements in 2024. The company posted a net profit of SR310.4 million in 2024, up 64% from SR188.7 million in the previous year. This excellent performance was mainly attributable to a 25% increase in selling prices, a 23% increase in operating income, short-term investment gains and the recovery of SAR 25 million from the tax and customs authorities. According to the company's CEO, demand surged more than 10% in the fourth quarter of 2024 compared with the same period last year, and the average selling price increased by 31% compared with the same period in 2023. In addition, the company currently holds 600000 tons of black clinker and 350000 tons of white clinker inventory, giving it enough operational flexibility to meet market demand, without rushing to expand production on a large scale.
Saudi Arabia Cement Company, as the enterprise with the largest annual output and export volume in 2024, made it clear in its annual report that there was no expansion plan in the short term or even in the medium term, believing that the current capacity of 8.6 million tons was sufficient to meet the domestic and foreign market demand. The company has the ability to flexibly produce new cement products according to market demand, especially when it is economically feasible. With its superior geographical location in Dammam City (located on the Gulf coast), Saudi Arabian Cement Company occupies a pivotal position in the export market. In 2024, its export volume accounted for 80% of Saudi Arabia's total cement export volume, enjoying the convenient access to the regional market brought by its geographical advantages.
The Arabian Cement Company, one of the oldest cement companies in Saudi Arabia, is also confident about the market demand in 2025, especially in Mecca and Jeddah. The company expects government-led development projects, major projects under the Public Investment Fund, and numerous large-scale private projects to flourish. Widespread construction activity in Jeddah is expected to be stimulated as the design and implementation plan for the demolition of the informal settlement in the area is gradually implemented. It is worth mentioning that the proportion of local deliveries in the western region climbed to 26.8% in 2024, and this proportion is expected to continue to rise with the launch of new projects.
Saudi Arabia's cement industry is heading for significant growth in 2025, with three core drivers behind it: government projects, housing construction and export business. Demand is expected to increase significantly as large-scale projects such as the World Expo, the World Cup, King Salman Park, Nimes, and the Red Sea project accelerate, because the impact of such projects is usually not apparent until two or three years after their announcement, and they are directly supported by public investment funds. At the same time, housing projects are gradually recovering due to lower interest rates and more real estate financing contracts, thus further stimulating domestic demand. In the field of export, the external market demand is showing a gradual growth trend, especially the increasing demand from neighboring countries.
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