Riyadh Cement CEO: Mega projects drive strong demand surge in Riyadh

Shoeil Al Ayed, CEO of Riyadh Cement Co.

Shoeil Al Ayed, CEO of Riyadh Cement, said the cement sector is witnessing a notable increase in demand due to the implementation of mega projects, particularly in the Riyadh region.

In an interview with Argaam, Al Ayed said these large-scale developments have turned Riyadh into an attractive market for companies across the sector. However, he noted that cement firms based in the Riyadh region remain best positioned to benefit from these opportunities.

He added that over the past four months, demand has seen a marked increase and is expected to continue rising by more than 15% in the Riyadh region through the end of the year.

On the company’s financial performance, Al Ayed said the rise in first-quarter revenue was driven by higher sales volumes and an increase in average selling prices, with demand growing by 6% across the sector and by 15% in the Riyadh region.

Commenting on the positive results despite rising fuel costs earlier this year, he said the company has focused on improving production efficiency and reducing energy consumption.

He added that support from the Ministry of Industry and Mineral Resources—through its Industrial Competitiveness Program—and a focus on optimizing operational efficiency and electricity usage have played a key role in lowering production costs, enabling the company to deliver strong results.

Al Ayed also said the company is currently working on projects that are expected to be completed before year-end, with their positive impact expected to reflect in performance starting early next year.

According to data from Argaam, Riyadh Cement posted net profit of SAR 75.7 million in the first quarter of 2025, up 8% from SAR 70.1 million in the same period last year.