Cement prices in Saudi Arabia forecast to rise to SAR 240/ ton soon: Al Kathiri CEO

Meshal Al Kathiri, CEO of Al Kathiri Holding Co.

Cement prices in Saudi Arabia are expected to rise to SAR 240 per ton in the near term, as construction works started on the mega government projects led by the Public Investment Fund (PIF), Meshal Al Kathiri, CEO of Al Kathiri Holding Co., told Argaam.

The price ceiling for cement sales was set by the government for consumers at SAR 240 per ton. Cement prices increased by 25% in the first quarter of the year, Al Kathiri said.

Moreover, the contracting and real estate development sectors saw a strong momentum as increasing projects are being implemented.  

“We are optimistic for the second half of the year. We expect cement sales to grow gradually over the next three years, as mega projects have entered the implementation phase,” he added.

Commenting on the company’s Q1 2021 financial results, Al Kathiri said cement sales hit SAR 13 million. Gravel and sand sales reached SAR 7.5 million. Concrete sales grew by SAR 5 million, driven by the housing ministry’s projects in the first quarter, which all boosted Al Kathiri’s sales and net profit.