Saudi Arabia's $30 Billion Cement Consumption Led by Mega Projects

Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Saudi Arabia will be the leading Gulf Cooperation Council (GCC) country over the next two years in terms of cement consumption and value, with the total reaching $30 billion. Industry analysts say that total GCC cement demand will exceed $49 billion, with the Saudi share accounting for 61.22% of the overall demand and consumption.

Saudi Arabia's leading position was a result of mega-projects implemented by the government, where 80% of projects' requirements are dependent on cement as a major source of building material, said Abdullah Said Rudwan of the Jeddah Chamber of Commerce and Industry.

The construction and contracting sector will witness rapid growth during the next two years, which will spur cement demand. But demand could come down gradually in a five-year period to remain at normal rates as soon as a series of mega projects, both in the state and private sectors, have been completed, Rudwan said.

Available data show that Saudi cement consumption has experienced robust growth in the last few years, increasing from 16 million tons in 2000 to more than 48 million tons in 2011, at a compound annual growth rate (CAGR) of 12%. Cement consumption in 2006-11 grew at a CAGR of 15.7%.

For related information, see April 11, 2013, article - Saudi Arabia Implements 3,088 Projects in Riyadh Province with $74 Billion in Investments.

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