Saudi cement demand to see 3% uptick in 2024

Cement demand in Saudi Arabia is forecast to advance by three per cent in 2024 in terms of volumes, compared to a decline of eight per cent in 2023, reports Aljazira Capital. The first 11 months of 2023 saw local dispatches fall to around 43Mt, marking a 7.4 per cent contraction YoY, mainly driven by weak construction activity in the housing sector.

Going forward, demand is expected to come primarily from the construction of giga projects, fuelled by government spending. According to Aljazira Capital, in the 1H23, Saudi Arabia accounted for 44 per cent, or US$44bn, of the total US$101bn of projects awarded in the MENA region, along with around 35 per cent of the estimated US$3trn total value of the project pipeline in the region.

Hosting Expo 2030 and the potential for a 2034 FIFA World Cup are expected to boost cement demand in Saudi Arabia in the coming years, along with an upturn in demand from the private sector on the back of predicted cuts in interest rates.