Al Jouf Cement Chair says competition persists, sees gradual demand recovery

Eisa Ba-Eisa, Chairman of Al Jouf Cement Co., highlights the growing competition in the Saudi market

Al Jouf Cement Co.’s Chairman Eisa Ba-Eisa said the Saudi cement sector continues to face intense competition, given the persistent supply-demand imbalance in some regions.

He told Argaam that expectations tied to economic growth, mega projects, and infrastructure developments under the Saudi Vision 2030 point toward a possible gradual improvement in demand in the coming periods.

The company’s Q4 and 2025 financial results were hit by several factors, including lower sales volumes, higher cost of sales, and accounting treatment of significant inventory discrepancies in clinker stocks, in line with approved accounting standards and disclosed in the company’s 2025 financial results, according to the top executive.

Al Jouf Cement, according to Ba-Eisa, is currently conducting a comprehensive review of its operational, administrative, financial, and commercial aspects as part of developing an integrated transformation strategy to be presented to the board for approval.

Once approved, the company plans to implement several initiatives under that strategy, including enhancing operational efficiency, optimizing costs, streamlining operational processes, and strengthening internal procedures and governance controls.

“We are also exploring expansion opportunities and market diversification, including potential export markets and regional opportunities, aiming to diversify revenue streams and strengthen competitiveness,” said the Chairman.

He further emphasized the company’s intention to benefit from opportunities linked to mega projects and infrastructure developments being undertaken under the Saudi Vision 2030, which should in turn support future sales growth.

According to Ba-Eisa, the local industrial sector supporting programs are expected to improve cost efficiency and competitiveness over the medium term, positively impacting operational performance and profit margins.

Additionally, Al Jouf Cement continues to develop and implement a comprehensive transformation strategy aimed at improving operational and financial performance, enhancing cost management efficiency, and diversifying markets and revenue sources.

This comes alongside close monitoring of developments in local and regional markets, as well as opportunities linked to mega projects and potential export markets. Further, expectations suggest a gradual improvement in demand in the coming periods, supported by economic growth and development projects, said Ba-Eisa.

However, he noted that providing precise financial forecasts remains difficult at this stage due to the ongoing evaluation and strategy development process. The company is focused on building more efficient and sustainable operational and financial foundations to enhance future performance and competitiveness both locally and internationally.

According to Argaam data, Al Jouf Cement’s losses widened to SAR 206.6 million in 2025, compared to SAR 27.7 million in 2024. Meanwhile, Q4 losses reached SAR 142.8 million.