A ban on cement exports in from Saudi Arabia three years ago seems to be having a limited effect on cement suppliers in the kingdom.
The cement cap was put in place to ensure the kingdom has enough cement supplies for its vast construction projects.
This includes a ban on cement exports to all countries except Bahrain, where weekly exports were halved from 50,000 to 25,000 tonnes. The restrictions also stipulated that local cement companies were required to keep 10% of their products in reserves, and that they would sell bagged cement in the domestic market at $52 per tonne.
However, Rajat Bagchi, associate researcher at NBK (National Bank of Kuwait) believe this has not adveserly affected the sector, as the cement industry in Saudi relies more on domestic supplies, which are currently benefitting from the high demand.
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