Saudi Arabia should scrap cement export fees, says Najran CEO

Najran Cement Co.’s chief executive Badr Jawhar urged the Saudi authorities to exempt cement from export tariffs altogether, adding that the Kingdom’s recent decision to cut the tariffs was “a step in the right direction”.

Companies will compare global cement prices and prices in the target export markets to assess the feasibility of exporting, Jawhar told CNBC Arabia on Sunday.

Last week, Saudi Arabia canceled all export duties on steel for two years and halved cement export tariffs to encourage local industries and producers, and enhance competition, Argaam reported.

Cement export tariffs had been earlier imposed at between SAR 85 and SAR 133 per ton, while steel export tariffs were estimated between SAR 58 and SAR 390 per ton.

He said Najran Cement had exported two trucks of cement on an experimental basis which proved unfeasible due to difficult customs procedures.

Jawhar added that Najran had stopped some production lines due to weak local demand. He said he was expecting a clear pricing model within the next two weeks which will give the company an opportunity for competition.  

Yemen is one of Najran’s target markets, thanks to strong demand in the country, Jawhar said.

The company has postponed plans to set up a specialized transport services firm until domestic demand improves, as the project requires high capital expenditure.

Meanwhile, Najran has completed the required feasibility study for its new mining firm. However, due to the recent amendments to mining laws in the Kingdom, it has not yet applied for the required licenses.