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JEDDAH: The ��������Ƶn Ministry of Commerce has granted six steel export licenses and six cement export licenses so far this year.
In 2020, the ministry issued a total of 21 cement export licenses and 19 steel licenses, and is currently reviewing two other export requests.
The new licenses come as construction activity begins to recover following the postponement of many projects during the coronavirus (COVID-19) pandemic.
At the same time, the price of steel has surged to SR3,514.73 ($937.26) per ton in the first quarter (Q1) of 2021, a 33 percent increase year-on-year and the highest price since 2008, according to the latest data from the General Authority for Statistics (GASTAT).
Badr Jawhar, chairman of the National Committee for Cement Companies in the Council for Saudi Chambers of Commerce and Industry, said that since exports were allowed and companies were exempt from export duties, Saudi exports of clinker and cement have increased, as the Saudi product has become a strong competitor in foreign markets.
He said that local companies will continue their export operations abroad, which have increased dramatically during Q1 this year.
According to research by real estate consultant firm JLL, material prices have risen as construction activity has surged in Q1.
“From a supply perspective, the first quarter recorded an increase in construction activity,” the JLL report said.
According to its figures, in the residential sector in Riyadh 7,700 units were handed over in Q1, bringing the total to 1.3 million units in the capital. In Jeddah, around 2,000 units were added, bringing the total to 838,000 units.
According to the report, 36,000 units will be delivered in Riyadh and 12,000 units in Jeddah this year. This year, Riyadh will see the construction of an extra 386,000 square meters of office space, 240 square meters of retail space, and 2,800 new hotel rooms, while Jeddah will gain a total of 43,000 square meters of office space, 200,000 square meters of retail space and 2,700 new hotel rooms.
At the same time, the Kingdom issued 307 new factory licenses in the first three months of the year, according to government estimates. This reflected a total investment of SR17.72 billion ($4.73 billion), an increase of 428.6 percent year-on-year in the first quarter of 2021.
According to data from the Ministry of Industry and Mineral Resources website, 240 permits were issued during the same period last year, a 27.92 percent increase year-on-year.
Osama Ghanem Al-Obaidy, an economic adviser and international economic law expert, told Arab News that the initiatives formed part of the government’s bid “to transform ��������Ƶ into a leading industrial power.”
He added: “Development of this sector is one of the pillars of Saudi Vision 2030 to create a competitive economy and sustainable development. ��������Ƶ aims to develop promising industries in food, medicine and medical supplies, as well as military industries, and industries relating to oil, gas, and petrochemicals, mining and chemicals.”