logo
Saudi Cement Sales Top $800 Million in Q1 Despite Profit Dip

Saudi Cement Sales Top $800 Million in Q1 Despite Profit Dip

Asharq Al-Awsat16-06-2025
Saudi Arabia's cement sector delivered strong top-line growth in the first quarter of 2025, with total sales surpassing $800 million (SAR3 billion), reflecting an 8.5% year-on-year increase.
However, rising operational costs weighed on bottom lines, with industry-wide net profits slipping 16.3% to $182 million (SAR648 million), down from SAR774 million a year earlier.
Among the 14 publicly listed cement producers on the Saudi exchange, 13 posted net profits during the first quarter. The exception was Al Jouf Cement, which recorded a loss of SAR 15.2 million. The company attributed its ongoing losses to rising production expenses, increased marketing costs, and higher financing burdens.
Yamama Cement emerged as the most profitable firm, reporting SAR142 million in net income, a 23.5% jump from Q1 2024. The company credited the gains to both increased sales volumes and improved average selling prices.
Saudi Cement posted the second-highest profit at SAR108 million, though this represented a 4.7% decline year-on-year. The drop was attributed to lower sales volumes, declining revenue from secondary sources, and higher general and administrative expenses.
Qassim Cement ranked third, with SAR94 million in profit, up 26.8% from the same period last year. The company cited stronger sales and reduced operating costs, including sales and administrative expenses.
According to Dr. Suleiman Al-Khalidi, a financial analyst and member of the Saudi Economic Association, the Q1 performance reflects improving conditions for the cement industry after years of volatility. 'We are witnessing signs of stabilization, with companies optimizing operational costs and improving efficiency,' he said.
Al-Khalidi forecasts steady growth in domestic cement demand, driven by large-scale infrastructure initiatives tied to Vision 2030, such as NEOM, Qiddiya, and the Red Sea Project. He also pointed to upcoming global events and housing expansions as key demand drivers.
He noted that ongoing market momentum may prompt mergers and strategic alliances within the sector, increasing competitiveness and scale.
Mohamed Omar, CEO of G World and a regional economic analyst, described the sector's combined SAR656 million in Q1 profits as a sign of solid demand and improving market stability. 'The growth is supported by a rise in mega-projects, public infrastructure investment, and a resurgence in the private construction sector,' he said.
Omar expects the positive trend to continue but cautioned that cement producers must remain agile in the face of rising energy and raw material costs. He urged companies to invest in energy-efficient and environmentally friendly technologies to sustain margins.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Rajasthan Foundation announces Riyadh chapter
Rajasthan Foundation announces Riyadh chapter

Arab News

time4 minutes ago

  • Arab News

Rajasthan Foundation announces Riyadh chapter

In a significant move to connect with the global Rajasthani diaspora, the Rajasthan Foundation, an initiative of the government of Rajasthan under the chairmanship of the chief minister, has announced the establishment of its Riyadh-Saudi Arabia Chapter. This initiative will bring together non-resident Rajasthanis on a common platform to promote cultural, business, and educational cooperation and extend a helping hand in times of need. To ensure smooth functioning and coordinated efforts, a 10-member executive committee was formed under the leadership of Vijay Soni. This committee comprises active and committed members of the Rajasthani community residing in Saudi Arabia. Dr. Manisha Arora, director of Rajasthan Foundation, held a virtual meeting with the newly appointed chapter presidents. Soni briefed the team on the importance and contribution of the foundation to non-resident Rajasthanis, calling it a true gift to Rajasthanis living in Saudi Arabia from the government of Rajasthan. Rajasthan Foundation actively assists non-resident Rajasthanis in resolving any grievances or issues related to their home districts. Additional District Magistrates have been appointed as nodal officers in each district to ensure all necessary help and coordination. Key highlights of the meeting opportunities: Discussions were held on fostering trade, investment, and business partnerships between Rajasthan and Saudi Arabia. 2. Cultural exchange: A mutual commitment was made to promote initiatives in tourism, education, and the Rajasthani (Marwari) language. Focus on building collaborative networks among professionals, entrepreneurs, and officials from both regions. Future roadmap •Joint implementation of mutually beneficial projects between Rajasthan and Saudi Arabia. •Launch of a membership campaign to connect more non-resident Rajasthanis with the foundation. •Establishment of a shared platform to promote Rajasthan's heritage, language, and education globally. Members of the executive committee of the Riyadh chapter include: Soni, Laxman Singh Parmar, Gauri Shankar Pareek, Anil Malpani, Rajeev Kumar, Gaurav Mehta, Prem Purushottam Purohit, Kshirod Kumar Kalyani, Rais Ahmed Syed, and Mohammad Ghulam Khan. This initiative by the Rajasthan Foundation marks a vital step in uniting non-resident Rajasthanis and strengthening cultural, educational, and economic ties with Saudi Arabia. Through the Riyadh chapter, efforts have now begun to take Rajasthan's rich culture, language, and entrepreneurial spirit to the global stage.

Savvy Group to train KAU students in games and esports
Savvy Group to train KAU students in games and esports

Arab News

time4 minutes ago

  • Arab News

Savvy Group to train KAU students in games and esports

Savvy Games Group, a Public Investment Fund company driving the growth of games and esports in Saudi Arabia, and King Abdulaziz University have signed a memorandum of understanding to offer specialized diplomas in games production and esports management to students. The collaboration will equip Saudi students with high-impact skills to help them pursue careers in the fast-growing games and esports industries. This MoU lays the groundwork for a strategic partnership between Savvy and KAU, with a shared vision to develop national talent and empower the next generation of professionals in Saudi Arabia's games and esports industry. The two diplomas — Games Production and Esports Management — will launch in the upcoming academic year. Launching in the upcoming academic year, the two diplomas — Games Production and Esports Management — will provide high-quality learning to students, blending academic education with practical, industry-driven expertise. By enrolling into these programs, students will gain core competencies in managing game development projects and organizing professional esports events — two vital fields that are shaping the future of entertainment, technology, and digital experiences. 'This partnership with King Abdulaziz University is a key step in building local capabilities in game development and esports operations,' said Majed Al-Muhanna, chief human resources officer at Savvy. 'This is part of our Savvy Academy initiative, through which we are enabling new pathways for the next generation of Saudi professionals to gain the skills and experience required to succeed and be a leader in this industry. Our work directly supports the National Gaming and Esports Strategy and Vision 2030's ambition of establishing Saudi Arabia as a global hub for games and esports.' Prof. Mohammed Balubaid, dean of the Applied College, added: 'This partnership with Savvy underscores our commitment to equipping students for careers in rapidly growing industries aligned with Vision 2030. As gaming and esports expand at an unprecedented pace, there's a rising demand for talent that combines creative insight with operational excellence. Through this collaboration, students are expected to be exposed to real-world opportunities such as potentially supporting major international events like the Esports World Cup hosted in Saudi Arabia. We're proud to offer our students these pathways and contribute to shaping the Kingdom's digital future.' The MoU is part of Savvy Academy's Level-Up program that is designed to provide vocational training in games and esports to university students in Saudi Arabia by partnering with renowned educational institutions.

Société Générale hired as primary dealer for local gov't debt instruments
Société Générale hired as primary dealer for local gov't debt instruments

Argaam

time4 minutes ago

  • Argaam

Société Générale hired as primary dealer for local gov't debt instruments

The Ministry of Finance and the National Debt Management Center (NDMC) signed an agreement with Société Générale to appoint the latter as a primary dealer for local government debt instruments. In a statement, NDMC said Société Générale joined five international financial institutions previously enrolled in the primary dealer program. They include BNP Paribas, Citigroup, Goldman Sachs, JPMorgan, and Standard Chartered. This is in addition to the 10 local financial institutions: Saudi National Bank (SNB), Saudi Awwal Bank (SAB), Bank AlJazira, Alinma Bank, Al Rajhi Bank, Albilad Capital, AlJazira Capital, Al Rajhi Capital, Derayah Financial, and Saudi Fransi Capital. NDMC noted that this agreement is part of ongoing efforts to achieve the goals of Saudi Vision 2030 under the Financial Sector Development Program through enabling financial institutions and developing an advanced capital market. It also highlighted the role of the NDMC in enhancing access to local debt markets through diversifying the investor base to ensure sustainable access and support the development of the secondary market.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store