15-05-2025
Riyadh Cement CEO: Mega projects drive strong demand surge in Riyadh
Saudi Arabia's cement industry witnesses growing demand driven by the implementation of mega projects in Saudi Arabia, especially in Riyadh, Shoeil Al-Ayed, CEO of Riyadh Cement Co., told Argaam.
The presence of large-scale projects in Riyadh has made the city an attractive market for all companies, although Riyadh-based companies remain the most favorably positioned to secure such projects.
There has been a noticeable demand uptick over the past four months, which Al-Ayed expects to continue at over 15% in Riyadh until year-end.
As for Riyadh Cement's Q1 2025 financial results, Al-Ayed indicated that the company reported higher revenue in the three-month period on increased sales volumes as well as higher average selling prices, as demand increased by 6% for the sector and 15% in Riyadh until year-end.
When asked about the company's ability to achieve such positive results despite the fuel price hikes introduced earlier this year, and the measures taken to mitigate their impact, Al-Ayed indicated the company has placed significant focus on improving production efficiency and rationalizing energy consumption.
Additionally, the support of the Ministry of Industry and Mineral Resources, through the Industrial Sector Competitiveness Program, along with the company's focus on operational efficiency and the reduction of electricity consumption, significantly contributed to lowering production costs, and thus enabling the company to achieve these strong results.
The Saudi cement producer has projects in the pipeline, which will likely be completed before year-end, with their positive impact likely to be reflected in the company's performance starting early next year.
