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Amidst construction surges, Saudi Arabia issues export licenses of construction materials
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Amidst construction surges, Saudi Arabia issues export licenses of construction materials

JEDDAH: Export licences each of steel and cement has been granted by the Saudi Arabian Ministry of Commerce so far this year. An issue of a total of 21 cement and 19 steel export licence was done by the Ministry. Two other export requests are currently under review.

According to the General Authority for Statistics (GASTAT), the price of steel increased to SR3,514.73 ($937.26) per ton in the first quarter of 2021 with a year-on-year increase of 33% and the highest price label since 2008. Badr Jawhar, Chairman of the National Committee for Cement Companies in the Council for Saudi Chambers of Commerce and Industry, states that Saudi is giving strong competition in the foreign markets as its export of clinker and cement have increased.

He further says that, since the export of local companies has increased at a higher rate during the first quarter of this year, it will continue its operation abroad. A report from a real estate consulting firm, JLL, stated that construction activity has risen in the first quarter of the year from a supply point of view. Statistics proved that 7,700 units were handed over in the first quarter in Riyadh, which brought the total to 1.3 million units in the capital. 2,000 units were added in Jeddah which brought the total to 838,000 units.

The report further states that this year, Riyadh will be receiving 36,000 units and Jeddah, 12,000 units. Riyadh will gain an extra construction of office space, retail space, and hotel rooms of 386,000 square metres, 240 square metres and 2,800 new rooms respectively, while Jeddah will be gaining the same in order of 43,000 square metres, 200,000 square metre and 2,700 new rooms.

An issue of 307 new factory licences in the first three months of the year by the Kingdom reflected a total investment of SR17. 72 billion ($4.73 billion), an increase of 428.6 per cent year-on-year in the first quarter of 2021.

The website of the Ministry of Industry and Mineral Resources shows a 27.9 2% increase year-on-year of 2020. According to an economic adviser and International economic law expert, Osama Ghanem Al-Obaidy, the initiatives are a part of the government's bid "to transform Saudi Arabia into a leading industrial power."

He further adds that the development of this sector will help achieve the Saudi Vision 2030 and its aim towards sustainable development and improvement in food, medicines, as well as the sectors of military, oil, gas, chemicals, etc.

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