Saudi Arabia Cement Industry Witnesses 10% Drop in Sales

Saudi Arabia: The total sales of cement in Saudi Arabia recorded a dip of 10.3% year on year in the month of August, 2016, and slipped to 58.55 million metric tons. However, as compared to July, the country witnessed a monthly growth of 41%, reaching to 4.34 million metric tons in August. The inventory is highlighting a year on year growth at 11.7%. As a result of 5% growth in inventory from previous month, the total inventory of cement in the country stood at nearly 26.35 million metric tons, signifying 45% of the total cement sale in Saudi Arabia.

TechSci Research depicts that Saudi Arabia construction market would witness robust growth and the construction sector of the neighbouring countries like United Arab Emirates (UAE), Qatar, etc. is going to outpace the growth of construction sector in Saudi Arabia over the coming years.

 According to the recently published report by TechSci Research, “GCC Construction Chemicals Market By Type, By End User, Competition Forecast and Opportunities, 2011 – 2021 – Saudi Arabia, UAE, Qatar, Kuwait, Oman & Bahrain”, the construction chemicals market in the GCC countries is projected to grow at a CAGR of over 7% during 2016 - 2021, due to rising government spending on construction projects coupled with increasing participation by private players in the real estate sector. Additionally, growing demand for modern residential complexes and commercial structures is expected to drive demand for construction chemicals in the GCC countries through 2021. Further, increasing need for economic diversification and reducing dependence on oil reserves is prompting majority of the countries in the region to increase expenditure on construction and infrastructure activities.