Saudi Arabia in ‘golden era’ for building materials: Masdar Building CEO

Faisal Al-Muhaidib, CEO of Masdar Building Materials 

Faisal Al-Muhaidib, CEO of Masdar Building Materials, said the company was established in 1970 and currently operates 104 branches in 29 cities across Saudi Arabia.

There are abundant opportunities in the sector, as growth continues under the Saudi Vision 2030 program, he told Argaam on the sidelines of the third Saudi International Iron & Steel Conference.

“We are witnessing a golden era in the Kingdom’s building materials and construction sector,” Al-Muhaidib added.

He noted that the Saudi construction sector exceeds SAR 400 billion annually, divided into three main segments: basic materials, support services, and infrastructure.

The CEO said that the basic materials market, including steel, wood, and aluminum, is valued at around SAR 200 billion, while the support services sector (such as supervision and engineering) is estimated at SAR 140-150 billion.

Meanwhile, the infrastructure and equipment transport sector accounts for approximately SAR 70 billion.

Saudi Arabia continues to see steady growth in steel demand, with total annual consumption reaching around 14 million tons, including 10 million tons produced locally and about four million tons imported, Al-Muhaidib noted.

The domestic steel industry comprises three main subsectors: long products used in construction, which are posting moderate growth; flat products used in industrial applications, which are expanding rapidly; and specialty steel products used in advanced sectors such as defence, aerospace, automotive, gas engines, and turbines.

He expected the flat products sector to grow by more than 7% annually, compared with 4-5% in long products, driven by industrial expansion and rising demand for downstream products.

The challenges facing the industry are mainly global, as it is closely tied to international market trends and price movements.

However, the opportunities remain strong, supported by major projects underway in Riyadh, the Red Sea, Jeddah, and Eastern Province, the CEO emphasized.

In February, the Public Investment Fund acquired a 30% stake in Masdar through a capital increase and subscription to new shares.