Saudi-listed Arabian Cement Company forecasts a positive movement in government and other vital development projects of the Public Investment Fund (PIF) in the Makkah region in 2025 will drive cement demand, the company said in its 2024 annual report.
 
Work is underway on a project to increase the production capacity of the fifth production line during fourth quarter 2025, the report said.

The company is also working on a project to connect its plant in Rabigh province with the power grid of the Saudi Electricity Company as part of the liquid fuel displacement programme.
 
The Western Region accounted for 26.8 percent of the total deliveries last year. The share is expected to grow with the launch of several strategic projects, in addition to the continued work on the Two Holy Mosques and housing projects.
 
The cement sector in the Kingdom is operating at 63 per cent, facing profit margin pressure due to large supply against a persistent demand decline.
 
However, the interest rate cut in September 2024 positively impacted the real estate market, leading to the start of real estate projects, the report said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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