It is reported that to meet the escalating local demand as well as cater to export markets such as Yemen and East African countries, Oman’s cement sector players are expanding their production capacity. Earlier in 2011, 25% of Oman’s cement demand was met by cheap inflow of cement, mainly from UAE where the construction sector was weak, resulting in excess cement supply.

UAE cement players have now hiked their cement prices due to high operational costs, thus giving the local players in Oman a stronger market share capitalization. According to Oman Cement, a leading producer in Oman, the higher demand for cement during the current quarter is driven by ongoing infrastructure and construction activities in the local market. At present, Oman Cement’s capacity utilization stands at 90%.

The revival of demand in the cement sector and improvement in the market share of the local players aided by higher volumes owing to higher infrastructure and construction activities have helped the company achieve this growth, added Gulf Baader Capital Market. They also remarked that the gains in the international oil prices have pushed the government to continue with its aggressive spending towards the infrastructure and construction activities which has spelled boon for the cement sector. Local cement demand is likely to remain at higher levels as most construction projects in Oman are in implementation stage.

Mr Mohammed bin Alawi Ali Muqaibal chairman of Raysut Cement believes Omani cement companies will witness unabated growth in forthcoming quarters aided by volume improvement.

Ultimately, the growing cement demand in the Middle East has gained more than a passing interest. The 7^th Middle East CemenTrade in Muscat on 02-03 October will review the Middle Eastern market trend as well as provide an update on Oman’s construction projects and many more presentations on the region’s cement industry scenario. One may Pre-Register here now, or contact Ms. Grace at grace@cmtsp.com.sg for more details.

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