Saudi Arabia Construction Aggregate Market

Saudi Arabia Construction Aggregate Market Overview

The construction aggregates refer to raw materials that are produced from natural sources and extracted from pits and quarries, including gravel, crushed stone, sand, and slag. These aggregates are used in construction for providing building a strong foundation, make drainage, fill voids, protect pipes, provide hard surfaces, and for shaping structures.

Main Saudi Arabia Aggregate Market Industry Trends and Driver

Saudi Arabia construction aggregate market is majorly driven by development of recreational projects, increasing demand for ready-mix concrete, growing tourism industry and rising urbanization. Saudi government is planning to diversify its economy to boost economic growth and attract new foreign investments in the country. Government has set-up sovereign wealth fund under the Saudi Vision 2030 initiative worth USD 2 trillion to support various large-scale projects like NEOM and Qiddiya, which is expected to increase the demand for ready-mix concrete in the country. For developing these projects, demand for different construction materials like ready-mix concrete will increase. Since aggregate is a critical component of ready-mix concrete, demand for construction aggregates is projected to increase, which in turn is creating lucrative growth opportunities for Saudi Arabia construction aggregate market.

Aggregates are highly used in the construction of homes, malls, roads, dams, airports, highways, and bridges owing to their benefits including reduction of void content, compact concrete mixes, low consumption of concrete of water, lower production costs, high mechanical strength of the concrete, high hydraulic conductivity value, and others. Moreover, according to Association of Equipment Manufacturers (AEM), the construction of the average home requires 400 tons of aggregate, while the average size school or hospital requires 15,000 tons. Since, government is increasingly focussing on the construction of new schools and residential houses, demand of construction aggregates, is expected to increase in the country. Increasing investment in the development of infrastructural projects including Red Sea Project, Makkah Grand Mosque – Third Expansion, Jeddah Tower, Ministry of Housing’s Sakani homes, Jabal Omar, Riyadh Metro, Riyadh Rapid Bus Transit System, King Fahd Medical City Expansion, King Abdullah Bin Abdulaziz Medical Complexes, and others is expected to accelerate the growth of the market.

However, high transportation cost and increasing energy cost and fuels including natural gas, diesel, petroleum coke and coal will further increase production cost of the construction aggregates, which may hamper the Saudi Arabia aggregate market growth.

According to World Travel & Tourism Council (WTTC) 2019 research, there has been a growth of 14% in Travel & Tourism in Saudi Arabia, and contributed 9.5% including direct, indirect, and induced impacts, to the Kingdom’s total economy. This is expected to increase the constructions of hotels, restaurants, tourist places, and others, which thereby, supports the growth of the construction aggregates market over the forecast period.

Various types of construction aggregates including crushed stones, gravel, sand, and others are used as building materials. Gravel is expected to be used widely in the manufacturing of concrete blocks, pipes, and bricks. The growing number of high-rise buildings, including homes, hotels, and government buildings that utilize concrete in an enormous amount is expected to support the market growth.

The construction aggregates find application in commercial, residential, industrial, and infrastructural constructions. The rising number of new infrastructure projects, including roadway and railway in Saudi Arabia is expected to provide the increase in the demand of the aggregates during the forecast period. The launch of the 30-year Saudi Railway Master Plan (SRMP) by the Saudi Railways Organisation (SRO), in three phases from 2010 to 2040 through the public-private partnership with aims of connecting to neighbouring countries is expected to propel the market demand of aggregates. This includes the creation of a 9900-km network.

Increasing awareness towards sustainability and adoption of recycled aggregates is further augmenting the market growth. This can be attributed to the several benefits of recycled aggregates that includes low price of material compared to other types; is multi-functional as they are made of crushed stone, gravel, sand, recycled brick, recycled asphalt, recycled slag and recycled concrete; and is used across many different building projects such as landscaping, construction, home refurbishments, roadworks and earthworks. In addition, recycled aggregates have a long-life span and perform effectively as other types of aggregate.

Saudi Arabia Construction Aggregate Industry Major Players & Competitive Landscape

Major leading companies operating in the Saudi Arabia Construction Aggregate Industry are Saudi ReadyMix, CityCement, YCC, Saudi Cement, SPCC, Eastern Province Cement Co., Yamama Cement, Mastour Readymix (Subsidiary of Mastour Holding Group), Al-Rashed Cement Company, Al Safwa Ltd., Qassim Cement Co., Nassir Haza & Bros. and many more.

Key Saudi Arabia Construction Aggregate Market Developments

• • In October 2024, Saudi building materials company Asas Al-Mohileb will develop and operate a large-scale concrete production facility for NEOM, capable of producing more than 20,000 cubic meters of ready-mix concrete per day. The multi-plant facility will incorporate carbon capture and utilization technology, supporting sustainable construction. Most of the output will be used for The Line, NEOM’s flagship smart city project. The development highlights rapid construction progress and strengthens local industry participation in Saudi Arabia’s Vision 2030 megaprojects.
  • In September 24, Saudi Aramco and China National Building Material Group have signed a five-year cooperation agreement to explore advanced materials and industrial development opportunities in Saudi Arabia. The partnership will assess establishing manufacturing facilities for wind turbine blades, hydrogen storage tanks, lower-carbon building materials, and energy storage solutions. It also includes plans for training, inspection, accreditation, and joint technology development centers, supporting innovation, sustainable construction, low-carbon growth, and Saudi Arabia’s industrial diversification goals.
  • In August 2022, Al Kifah Ready-Mix & Blocks (KRB), a leading supplier of ready-mix concrete in Saudi Arabia announced that it has received contract to supply ready-mix concrete at Neom Mountain base camp Trojena.

Saudi Arabia Construction Aggregate Market Scope of the Report

Saudi Arabia Construction Aggregate Market Leading players

• • Saudi ReadyMix 

  • CityCement 

  • YCC 

  • Saudi Cement 

  • SPCC 

  • Eastern Province Cement Co. 

  • Yamama Cement 

  • Mastour Readymix (Subsidiary of Mastour Holding Group) 

  • Al-Rashed Cement Company 

  • Al Safwa Ltd. 

  • Qassim Cement Co. 

  • Nassir Haza & Bros.