عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Cement Sales Rise in June

A view shows the construction site of Jeddah Tower in Jeddah, Saudi Arabia February 6, 2018. (Reuters)
A view shows the construction site of Jeddah Tower in Jeddah, Saudi Arabia February 6, 2018. (Reuters)
TT
TT

Saudi Cement Sales Rise in June

A view shows the construction site of Jeddah Tower in Jeddah, Saudi Arabia February 6, 2018. (Reuters)
A view shows the construction site of Jeddah Tower in Jeddah, Saudi Arabia February 6, 2018. (Reuters)

Saudi cement companies witnessed a remarkable improvement in sales, which proves the vitality of the Kingdom’s economy and the effectiveness of the construction sector and contracting.

According to recent statistics, total sales of Saudi cement companies rose by 20 percent in June, compared with the same month of 2018.

The cement sector in the Saudi stock market has seen noticeable price hikes in past few weeks, which contributed to the rise in shares of all companies listed in this sector, recording a jump of up to 60 percent, compared to early this year.

In June, sales of 17 cement companies in the domestic market rose to 2.55 million tons, compared to sales of 2.13 million tons in the same month of 2018.

Saudi Arabia's announcement of the largest spending budget for 2019 is an important indicator of increased project implementation and high demand for construction materials, including cement.

Saudi cement companies listed in the local market posted a net profit of SAR 350 million ($93.3 million) in H1 2018, but this figure is expected to increase further.

The growth forecast for H1 2019 is the result of the profit of SAR 646.6 million ($172.4 million) registered by cement companies during Q1 2019.

The Q2 results are also expected to be positive compared to the same quarter last year, meaning listed cement companies will achieve much higher profits during H1 2019, compared to H1 2018.

In this context, reports by local cement companies show that seven companies have exported 145,000 tons of cement in June 2019, while five have exported clinker during the same month.

These developments come as global rating agencies forecast a bigger growth for the Saudi economy.

Moody's and Fitch affirmed Saudi Arabia's credit rating at A1 and A+ respectively, with a stable outlook.

These ratings demonstrate their high level of confidence in the Saudi economy and the effectiveness of economic reforms taken by the government.

Credit ratings by these agencies provide significant indicators for investors, while positive indicators show the strength, vitality and effectiveness of the Kingdom's economy.

Most Viewed

 
 
Business

ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
TT
TT

ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.