Saudi Cement Sales Dip in December 2025, But Full-Year Growth Remains Strong at 10%

Saudi Cement Sector Sees Year-End Slowdown, Closes 2025 with 10% Annual Growth

Saudi Arabia’s cement industry recorded a modest decline in December 2025, with sales softening month-on-month and year-on-year. However, the sector concluded a robust full year, with annual sales volumes rising approximately 10% to 56.2 million tonnes, driven by the Kingdom's sustained Vision 2030 construction activity.

December 2025: A Seasonal Slowdown

According to an Al Rajhi Capital report and industry data, total cement sales in December reached 5.14 million tonnes. This represents a 1.8% decline year-on-year (YoY) and a 1.4% drop from November 2025, signaling a seasonal year-end deceleration in construction demand.

Despite the monthly dip, the broader annual picture remains positive. The full-year FY2025 sales figure of ~56.2 million tonnes underscores resilient underlying demand fueled by giga-projects and infrastructure development.

Quarterly Resilience and Company Performance

The fourth quarter of 2025 showed strength, with Q4 sales up 4.8% YoY and 10.2% quarter-on-quarter. This indicates sustained project activity even amidst December's slowdown.

Leading producers demonstrated varied performance:

• Yamama Cement saw a sharp December volume drop but significantly increased its full-year market share to 15.1% (from 11.9% in 2024).

• Saudi Cement maintained a strong position with a ~13% market share.

• Riyadh Cement delivered reliable monthly output.

Regional Demand Variations

Demand patterns were uneven across the Kingdom in December:

• Declining Regions: The Northern, Eastern, and Central regions posted YoY sales declines.

• Growing Regions: The Western and Southern regions bucked the trend with modest growth of 1.7% and 0.5%, respectively.

For the full year, the Central region led growth with sales up nearly 18%, followed by strong double-digit gains in the Eastern and Western regions. The Southern and Northern regions recorded slight annual declines.

Inventory Levels and Sector Outlook

Clinker inventories decreased slightly by 0.6% MoM to 43.8 million tonnes in December, reflecting adjusted production. Inventory levels vary by company, with Riyadh Cement holding the lowest stock (equivalent to ~4 months of sales) and Southern Cement maintaining higher levels (~20 months of sales).

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Looking Ahead to 2026

The December slowdown reflects typical seasonal and project-cyclical trends. The sector's solid annual growth remains anchored to Saudi Arabia's expansive construction pipeline under Vision 2030, including ongoing work on urban developments, transportation networks, and giga-projects like NEOM.

While short-term monthly volatility may continue, the medium-to-long-term outlook for cement demand in the Kingdom stays positive, supported by the government's unwavering commitment to economic diversification and infrastructure expansion. Industry watchers will monitor 2026 quarterly sales data and regional project rollouts for continued momentum.