Saudi cement firms in central region may slash prices amid robust competition 

During the first quarter, the average selling prices for cement stayed under pressure, falling to SR174.3 per ton from SR186 the previous quarter. (Shutterstock)
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Updated 27 June 2023
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Saudi cement firms in central region may slash prices amid robust competition 

RIYADH: A price war between cement producers is likely to break out in Saudi Arabia’s central region on the back of the giga-projects boom, according to a recent report from AlJazira Capital.

Since the majority of the huge ongoing developments in the Kingdom are located in its center, companies from across the country have ventured into the region, causing competition to soar.  

The report added that the central area is also logistically more feasible and accessible for the majority of the firms in the Kingdom, further attracting external players. 

“We believe that the competition in the central region might evolve into a price war, and companies could start cutting prices on a larger scale to retain the market share in the region, which will be visible in lower average selling prices starting from the second quarter of 2023,” the report said. 

During the first quarter, the average selling prices for cement stayed under pressure, falling to SR174.3 ($46.47) per ton from SR186 the previous quarter.

The anticipated drop in prices comes despite the housing boom that pushed cement demand upward in 2022, according to the report.  

Local cement sales only accounted for 89 percent of total clinker production between January 2022 and May 2023, reported AlJazira Capital.

As a result, the sector’s overall clinker inventory level surged to 37.6 tons by the end of May of this year.  

Clinker is considered the backbone of cement production and is a mixture of limestone and minerals transformed by heat. 

According to the consultancy, local cement sales are expected to drop by 9 percent annually to 46.3 tons this year, whereas inventories will reach 36.9 tons, up 5.5 percent annually. 

By the end of 2023, the businesses covered by AlJazira Capital are forecast to record a decrease of 9.1 percent year over year in exports. 

Saudi Arabia’s antitrust authority penalized 14 cement companies with a collective fine of SR140 million for colluding to raise cement prices in the Kingdom in April 2023.

The General Authority for Competition imposed an SR10 million fine on each producer for manipulating the cement prices to benefit themselves, infringing Article 4 of the Competition Law. 

The law prohibited practices, agreements, or contracts among competing firms that lead to controlling the prices of goods and services intended for sale by increasing or decreasing them to harm the market. 

The penalized companies included Al Safwa Cement Co., City Cement Co., and Al-Jouf Cement Co., as well as Umm Al-Qura Co. and Qassim Cement Co.

Other firms to receive fines were Najran Cement Co., Southern Province Cement Co., and United Cement Industrial Co., with Yamama Cement Co., Riyadh Cement Co. and Arabian Cement Co. also being punished.

Saudi Cement Co., Hail Cement Co. and Yanbu Cement Co. also received fines, revealed the release.


Middle East AI adoption reaches 75%, beating global average: PwC survey 

Updated 19 December 2025
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Middle East AI adoption reaches 75%, beating global average: PwC survey 

RIYADH: Artificial intelligence is becoming embedded across Middle East workplaces, with 75 percent of employees using AI tools at work over the past year, a higher rate than the 69 percent global average, a new survey showed.

According to PwC’s Middle East Workforce Hopes and Fears Survey 2025, the region is outpacing global peers in adopting AI for everyday work, driven by government and corporate digital transformation efforts.

Based on responses from 1,286 employees, the survey indicates AI use has moved beyond pilot stages, with 32 percent of workers using generative AI tools daily — above the global average of 28 percent and reflecting growing familiarity with AI-driven workflows.

The survey findings align with trends observed in Saudi Arabia, where advanced technologies such as AI are being widely embraced across workplaces.

In November, a report released by KPMG highlighted the Kingdom’s progress in the technology sector, noting that 84 percent of CEOs in Saudi Arabia are ready to deploy AI responsibly — well above the 76 percent global benchmark — supported by the Kingdom’s data governance ecosystem, including national initiatives led by the Saudi Data and Artificial Intelligence Authority. 

Earlier this month, data from the Global AI Index revealed that Saudi Arabia ranked fifth globally and first in the Arab region for growth in the AI sector. 

Commenting on the findings, Randa Bahsoun, partner at PwC Middle East, said: “As employees confidently embrace change, build new capabilities and show remarkable adaptability with AI, they also want to feel secure and supported.” 

She added: “Organizations that provide clarity on how roles will evolve, expand access to learning and protect wellbeing will be the ones that retain talent and get ahead in a fast-changing labor market.” 

Adapting to the tech-driven future 

The latest PwC survey found that the Middle East workforce is confidently leading the integration of AI into daily work, while prioritizing job security and skills development at higher rates than their global counterparts.

According to the report, 49 percent of employees in the region expect technological change — including AI, robotics and automation — to impact their jobs to a large or very large extent over the next three years, compared with 45 percent globally.

PwC said this trend reflects not only higher adoption, but also greater readiness and comfort with next-generation technologies across the region. 

Employees in the Middle East increasingly view emerging technologies as tools that enhance productivity and creativity rather than threats to job security. 

Around eight out of 10 employees said AI has improved their productivity, with 87 percent reporting higher-quality work and 84 percent citing increased creativity. 

Higher confidence among younger employees 

The survey found that younger employees in the region demonstrate significantly higher confidence in AI’s potential, with millennials and Gen Z being the most hands-on users of AI tools. These groups are adopting new technologies quickly and often outpacing older cohorts in both usage and creative application. 

“This puts early career employees in a strong position to adapt to the evolving technological demands of entry-level roles,” said PwC. 

It added: “For employers, this is an opportunity to leverage younger talent to drive digital adoption and performance, while providing guidance, clarity and support as AI continues to reshape the future of work.” 

Acquiring the tools

Skills development remains a defining priority for the Middle East workforce, according to the survey. 

The report found that 69 percent of employees in the region gained new skills over the past 12 months, compared with 56 percent globally. 

Some 81 percent of respondents said they would prefer a job that offers opportunities to build transferable skills — higher than the 69 percent global average. 

Job security has also emerged as the top priority, with 85 percent of employees saying it is very important. 

“As employees in the Middle East seek balance and flexibility, their expectations of career progression and reward are also evolving. Fewer employees are asking for a pay rise than last year, signalling a more cautious labor market,” said PwC. 

The report found that engagement levels among the Middle East workforce remain among the highest globally, with 78 percent of regional employees saying they look forward to going to work, compared with 64 percent globally. 

Despite this high level of engagement, 45 percent of employees said they feel fatigued at least once a week, and nearly half reported feeling overwhelmed, indicating that workload intensity is becoming a significant pressure point. 

Converting momentum to benefits 

PwC highlighted several actions organizations should prioritize to convert the current AI momentum into a lasting advantage. 

The firm said companies should communicate clearly and consistently about where AI technologies are being deployed, what will change across processes, how job roles will be affected and where new value will be created. 

The report also emphasized the importance of building a continuously evolving, future-ready, skills-first workforce that can fully harness AI’s potential. 

“Leaders need to ensure upskilling, reskilling and capability building move 22 beyond periodic initiatives and become a key element of their organizations’ forward-looking business strategy,” said PwC. 

It added: “This means identifying future skill needs early, assessing current capabilities to understand gaps and using those insights to create development pathways tailored to roles, seniority and diverse career trajectories.” 

Companies should also foster a culture of agility and innovation and equip managers to effectively support AI-enabled teams. 

PwC said managers must have the clarity, tools and protected time needed to coach teams, support skill development and manage workloads in ways that sustain employee engagement and wellbeing. 

“This can be achieved by setting clear performance expectations for managers around employee development and wellbeing and supporting them with the knowledge and guidance needed to fulfil these responsibilities,” added PwC. 

Organizations should also prioritize flexibility, autonomy and balanced workloads to sustain high performance, giving employees the freedom and clarity to manage their work effectively. 

The report suggested that expanding flexible work arrangements, strengthening autonomy in day-to-day decision-making and giving teams a greater voice in how work gets done could help employees perform at their best. 

“The Middle East’s workforce continues to demonstrate a powerful blend of optimism, ambition and adaptability. The challenge now is for leaders to amplify these strengths through vision, transparency and care – ensuring that technology, trust and talent progress together,” concluded the report. 

Earlier this month, a KPMG report echoed similar views, saying UAE CEOs are accelerating investment in artificial intelligence while prioritizing people, skills and responsible innovation as core drivers of future growth. 

The report said 84 percent of CEOs in the UAE expect to expand headcount over the next three years, while 80 percent are already redesigning roles to integrate AI collaboration across their businesses.