Cement Industry in Saudi Arabia to reach 70 million tons in 2013
The cement industry in Saudi Arabia developed rapidly during the recent period as the cement production volume is expected to reach 69.9 million tons in 2013.
ZAWYA
November 22, 2011
22 November 2011 Energy Alternatives to meet the Needs of Plants after issuing New Licenses
The cement industry in the Kingdom of Saudi Arabia developed rapidly during the recent period as the cement production volume is expected to reach 69.9 million tons in 2013, while it is of 60 million tons currently.
The Saudi government plans to issue seven licenses for cement plants before the end of this year. This industry will face a major crisis caused by the lack of stock and its non-provision of its fuel needs. Will this affect this vital industry in KSA?
Real Estate Development
A recent report issued by Banque Saudi Fransi indicated that KSA needs to construct 1.65 million new residences by 2015 in order to meet the growing demand. The public and private real estate development companies will need to construct around 275,000 units per year until then. Thus, Saudi Arabia will face a huge accommodation problem as a result of the quick population growth and the flow of foreign labor, and it is currently implementing an expenditure plan on infrastructure worth USD 400 billion. Consequently, the demand for cement will continue to increase during the next five years.
According to the report of Jadwa Investment Company, the production of cement has evolved significantly over the past years, as it was of 23.8 million tons in 2005, increased by 12 tons in 2007 and by 7.3 tons in 2006, to reach 59.3 million tons in 2010 then around 62 million tons in 2011. It is also expected to reach 69 million tons in 2013, as shown in Chart 1.
