Arabian Cement Company — Cyborg Score 7/10

Solid
Building Materials & Cement Manufacturing

Strategic Profile

The company's principal activities include production of cement, construction materials and other related materials and derivatives, trading of clinker, cement and construction materials inside and outside the Kingdom of Saudi Arabia, and utilization of mines and establishing factories. Its subsidiary Qatrana Cement in Jordan has 1.8 million tonnes of clinker annual capacity, targeting Jordanian markets and neighboring countries. The company maintains substantial regional production infrastructure with integrated operations across the Levant.

Cyborg Score Rationale

The Rabigh facility has designed production capacity of 3.8 million tonnes of clinker annually and cement grinding capacity of approximately 6 million tonnes annually. The company maintains steady dividend payouts with a 5.77% yield, indicating stable cash generation. Historical presence since 1955 and regional diversification provide competitive resilience, though exposure to cyclical construction markets presents growth constraints.

Top Insights

  • Founded in 1955, Arabian Cement is the pioneer cement manufacturer in Saudi Arabia and the Gulf region with 70+ years of operational history
  • Integrated production capabilities with 3.8M tonnes/year clinker capacity in Saudi Arabia plus regional expansion into Jordan through Qatrana subsidiary
  • Semi-annual dividend payer with 5.77% yield as of February 2025, reflecting commitment to shareholder returns
  • Operates in cyclical construction materials sector; subject to regional infrastructure spending cycles and commodity pricing pressures

Named Competitors

  • Saudi Cement — Major Saudi cement producer
  • Yamama Cement — Regional cement manufacturer
  • Yanbu Cement — Western Saudi cement producer
  • Tabuk Cement — Northern Saudi cement operator

Recent Developments

  • (February 2025) Dividend yield at 5.77% with 1.50 SAR annual dividend, down 18.92% year-over-year
  • (March 2026) Stock price trading near 26.60 SAR with modest volatility in regional markets

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