Saudi cement producers’ profits have declined 17 to 27 per cent following lower construction activity in the kingdom.

Yanbu Cement posted an estimated yearly net loss of 20.2 per cent to SR162m ($43.19m) in the fourth quarter of 2013. Qassim Cement registered a loss of 5.4 per cent to SR135.3m, while Southern Province Cement Company had a loss of 1.2 per cent to SR251m.

Yamama Cement posted an income increase of 2.3 per cent to SR178m, but saw its operating profits decline 22 per cent compared with the same period last year.

Key reasons for the dwindling profits are Saudisation and lower sales volumes due to a decline in construction activity. Contractors are struggling to source qualified Saudi nationals to meet their Saudisation requirements for the state Nitaqat programme, while a clampdown on illegal workers has resulted in the cancellation of many small projects.