Saudi cement demand poised for 8% growth by 2025: Riyadh Cement CEO

Shoeil Al-Ayed, CEO of Riyadh Cement Co.

Demand for cement in Saudi Arabia is expected to grow between 4% and 8% by 2025, Shoeil Al-Ayed, CEO of Riyadh Cement Co., told Asharq News.

He explained that this projected increase is driven by major projects undertaken by the Kingdom, particularly in Riyadh.

Demand in Q3 2024 saw a slight rise compared to the previous two quarters, all of it was locally driven, Al-Ayed said. He explained that the company is fortunate to operate in Riyadh, where most strategic projects are concentrated. In addition, the firm supplies its output to the majority of large-scale projects in the city.

Riyadh Cement's current market share is 6.5%, which is likely to grow as demand increases.

Saudi Arabia is exporting black cement to the GCC countries, Jordan, Iraq, and Egypt, the CEO said, noting that Riyadh Cement also aims to expand its exports to the Horn of Africa.

Additionally, the cement producer plans to add a third production line for black cement, which is likely to be approved in light of the growing demand.

Riyadh Cement is open to merger and acquisition proposals, although it has no decisions currently in this regard, the CEO said, affirming that the company is well positioned in the market.

Regarding dividends, the top executive said the company has consistently distributed dividends every six months over the past decade. It is moving on the right direction, aiming to fulfill its and shareholders' interests.

According to data available with Argaam, Riyadh Cement posted SAR 229.1 million in net profit for the first nine months of 2024, a rise of 58% from SAR 145.4 million in 9M 2023. In Q3 2024, the cement producer saw a more than five-fold leap to SAR 94.6 million, from SAR 18.71 million a year ago.