Sukuk Capital: Saudi cement companies exported only 4.2% of their total sales in 2023

By Ahmed Falah Al-Jahni

Sukuk Capital reported that total cement sales in Saudi Arabia reached 49.3 million tons by the end of 2023, a 6% decrease from the previous year.

According to the report, the total volume of clinker exports in 2017 from the total sales of cement companies in Saudi Arabia was estimated at 0.35%, while in 2018, it achieved 2.68%. Export sales achieved 4.38% in 2019, and in the full year 2020, it was 3.99%. To reach a sales record in 2021, a delivery rate of 2.69% of total sales was achieved. Moreover, sales increased to 3.49% in 2022 and 4.22% in 2023.

Comparing cement sales between 2015 and 2023, 2015 recorded the highest sales in the sector, reaching 61.4 million tons. Cement sales in 2023 showed a 20% decrease compared to 2016 levels.

Clinker production reached approximately 4 million tons annually, while clinker inventory for 2023 stood at 37.9 million tons, reflecting a 75% increase compared to 2015. This rise in inventory is attributed to decreased sales in recent periods, with clinker production levels remaining stable.

In 2016, Saudi cement companies were permitted to export clinker to other countries under regulations outlined by the Ministry of Commerce in 2018. The removal of export fees facilitated the disposal of surplus clinker, benefiting the cement companies.