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The demand for cement in Saudi Arabia fell by 35% during the second quarter of 2020, CNBC Arabia reported, citing Yanbu Cement Co.’s Chief Executive Officer, Ahmed Bin Abduh Zugail.
He attributed the decline to the complete closure of some regions across the Kingdom due to the COVID-19 pandemic, as well as seasonality factors.
However, demand increased in June due to the gradual reopening of economy, end of the holy month of Ramadan, and also ahead of the value-added tax (VAT) increase, the CEO said.
Yanbu Cement’s net profit rose in the first half of 2020, driven by the Q1 momentum, when demand was better.
Zugail expected the demand to rise by nearly 10% year-on-year (YoY) in H2 2020 to reach 46-48 million tons.
He further indicated that the current Hajj season will not be pay off as previous years due to the limited numbers of pilgrims.
Yanbu Cement reported a net profit after Zakat and tax of SAR 129.6 million for H1 2020, a rise of 15% YoY, compared to SAR 113 million in the same period last year.
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