Saudi Arabia issues steel, cement export licenses amid construction surge

Saudi Arabia issues steel, cement export licenses amid construction surge

JEDDAH: The Saudi Arabian Ministry of Commerce has granted six steel export licenses and six cement export licenses so far this year. In 2020, the ministry issued a total of 21 cement export licenses and 19 steel licenses, and is currently reviewing two other export requests. The new licenses come as construction activity begins to recover following the postponement of many projects during the coronavirus (COVID-19) pandemic. At the same time, the price of steel has surged to SR3,514.73 ($937.26) per ton in the first quarter (Q1) of 2021, a 33 percent increase year-on-year and the highest price since 2008, according to the latest data from the General Authority for Statistics (GASTAT). Badr Jawhar, chairman of the National Committee for Cement Companies in the Council for Saudi Chambers of Commerce and Industry, said that since exports were allowed and companies were exempt from export duties, Saudi exports of clinker and cement have increased, as the Saudi product has become a strong competitor in foreign markets. He said that local companies will continue their export operations abroad, which have increased dramatically during Q1 this year. According to research by real estate consultant firm JLL, material prices have risen as construction activity