Source: NBK Capital
The Saudi Cement Sector – Proxy for the Kingdom’s Growth
The Saudi cement sector appears to be on the few bright spots in an otherwise dull Gulf Cooperation Council (GCC) cement sector. Our view on the Kingdom’s cement sector is underpinned by the positive outlook on the country’s construction sector. However, we are a bit concerned about the expected oversupply and hence forecast range-bound cement prices over the medium term. Contrary to our mixed outlook on the sector, we are comparatively more positive on the financial performance of the Saudi Arabian cement companies in spite of our concern and stand on firm ground highlighting the sound financial health of local cement companies.