The cement crisis we are currently facing is the result of previous problems that happened one after the other. No doubt, such difficulties impede or disrupt development projects and often cause contractors and project owners to end up in court or at the table of dispute settlement committees for resolution.
The current trouble has been precipitated by the sudden increase in cement prices. The spike in prices has caused many contractors to suffer losses because their projects were designed based on the prevailing market prices at that time.
Contractors are often caught flatfooted when cement prices shoot up in the market at, sometimes, twice the previous price. This often leads to the emergence of a black market, prompting some distributors to hoard cement, although they know that this is against the law.
The cement crisis calls for a drastic solution. One solution is for the private sector to build more cement factories.
Investing in such a project is profitable, considering that there is a construction boom in the Kingdom and in neighboring countries.
In the meantime, the authorities should crack down on those hoarding cement. Hoarding is a crime and those found guilty should be held responsible. The cement crisis must be resolved so that development projects can continue unhindered.
In line with this, courts should also try to find win-win solutions for both contractors and project owners
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