Aggressive development strategies have led to the expansion of cement production facilities. Over six million tons of cement will be available for export. The need to export has been further stimulated by a government slow-down in infrastructure spending as budget deficits and dropping oil prices have scaled down government expenditures. Quota busting and the addition of Iraq to OPEC's oil production could serve to depress oil revenues further and reduce government expenditure on construction. Taking this into account, construction leaders are now targeting neighboring markets.
Local demand is still high, but it is flattening. . .
Currently there are several cement plants throughout the region that are pursuing expansion projects. Arabian Cement and Yanbu Cement are some of the other Saudi Arabian firms that are seeking to boost production levels. In Oman, the Raysut Cement Company is expected to increase production from 500,000 tons to 750,000 tons. Qatar National Cement is hoping new production will convert Qatar from an importer into a net exporter of cement next year. The company is aiming to boost capacity to more than a million tons next year.