Saudi Arabian Cement (Arabian Cement Co.) expects pricing pressures to persist due to uneven regional demand. The company's chief executive officer, Badr Johar, told Argaam that manufacturers were targeting specific regions by lowering prices to gain market share in the face of high overproduction and inventory levels.
Johar noted that prices fluctuated regionally and within the same region, reflecting the persistent imbalance between supply and demand. Despite the significant increase in demand compared with last year, some producers are still trying to gain market share by lowering prices. He mentioned that intense competition had pushed prices down to a low level, and that the sharp drop in prices had caused sales to shift from low-price areas to high-price areas, thus shifting competitive pressure to adjacent markets.
By the end of the third quarter of 2025, Arabian Cement had achieved a market share of 6% in the Kingdom of Saudi Arabia. The company focuses on high-quality sales, introducing new premium cement products, such as Portland cement and pozzolana cement, aimed at established customers and high-yield regions, with pricing comparable to other products to enhance market awareness.
On the financial front, Johar said profit growth in the third quarter of 2025 was due to higher average selling prices at the parent company, improved production efficiency and strict cost controls, which offset higher energy costs. Revenue growth was driven by slightly higher sales from the parent company and significant growth from the Jordanian subsidiary, which benefited from domestic sales and exports to Syria.
The CEO said overall demand was up 12.75% year on year. Arab Cement's net profit fell 15% to SR109.6 million in the first three quarters of 2025, down from SR128.8 million in the same period last year. Profits in the third quarter, however, rose 43% from a year earlier to SR65.5 million.
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