Establishing Umm Al-Qura Cement with a total capital of SAR 275m

The Minster of Commerce and Industry, Dr. Tawfeeq Bin Fawzan Al-Rabia, approved the establishment of Umm Al-Qura Cement Company as closed joint stock company under formation located in Riyadh.

The new Company’s capital is SAR 275m divided into 27.5m shares with SAR 10 par value each. Founders have subscribed to all shares.

The company aims at producing all types of gray and white cement in addition to operating Portland and white cement plants.

The cement company will have a term of 99 calendar years, which could be extended upon an extraordinary general assembly decision. The company’s shares may only be publicly offered in accordance with the capital market regulations; according to the ministry’s statement.

Founders appointed the first 5 members BOD for five years session effective from the ministerial decree issuance date. Following BODs should be elected in a general assembly meeting to serve for 3 years session.

King Abdullah has issued urgent directives last April to address the growing demand for Cement.

The directives proposed 2 actions towards the problem solving:

First: a short-term solution requiring all cement companies to rapidly import required cement to cover the market demand.

Second: a long-term solution by establishing 3 to 4 new cement plants with an annual production capacity of 12bn tons to meet future needs. The King approved a budget of SAR 3bn to support this program for 3 years.