Saudi Cement Industry Embraces Sustainability and Innovation

Saudi Arabia's cement industry is undergoing a transformative phase, aligning with circular economy principles and digital innovation to secure its global market position. With advanced technologies already in place across most plants in the Kingdom, the industry is on track to achieve operational excellence and de-carbonization goals within the next 2 to 5 years.

The white cement market in Saudi Arabia has seen significant growth, reaching $165.11 million in 2022. Projections indicate a continued upward trend, with a growth rate of 11.93 percent expected from 2024 to 2028. Major projects like NEOM and Qiddiya, alongside infrastructure expansions, are fueling the demand for high-quality cement in the country.

To address environmental concerns, the industry is actively adopting oxy-fuel technology, renewable energy sources, and low-carbon hydrogen to reduce carbon emissions and enhance competitiveness post-2030. Initiatives such as the OXAGON project at NEOM are driving these sustainability efforts forward.

Despite facing challenges like increased sea freight costs, geopolitical tensions impacting vessel availability, and rising energy prices from Aramco, Saudi cement plants maintain a cost advantage. Through a focus on operational excellence, these plants have opportunities for further cost reduction.

In 2024, Saudi cement firms experienced a decline in domestic sales and exports, attributed to reduced government investment, the shift towards green cement for giga-projects, and seasonal factors like Ramadan affecting sales. However, Saudi Arabia remains a significant player in the regional cement industry.

With a high per capita cement consumption rate and untapped sector capacity, Saudi Arabia's cement industry is poised for sustainable growth. By leveraging strategic initiatives and technological advancements, the industry is not only securing its future but also contributing to a more environmentally conscious and competitive market landscape.