Oman’s growing construction industry will boost cement demand

An increase in construction activity and government funded infrastructure projects in Oman is set to boost the country’s cement market. Demand for cement is predicted to grow at an annual rate of 6% over the next four years, according to a recent report by Al Maha Financial Service. Cement revenues in Oman grew to an average of OMR145 million for the last three years.

The Omani government will reportedly invest around OMR45 billion in transport and social infrastructure, as well as developing tourism facilities and expanding industrial areas, over the next few years. The transportation sector will account for a large portion of this funding, with new infrastructure being constructed to improve travel links and distribution by rail, sea, roads and airports. The 2244 km national rail project, which will connect major industrial hubs and link to the GCC railway, is a significant feature of the infrastructure programme.

A large portion of cement demand in Oman is met by the country’s two major manufacturers Raysut Cement Company and Oman Cement Company, which have a combined cement production capacity of 7.2 million tpa and a clinker production capacity of 6 million tpa. The positive forecast for domestic cement demand has prompted the producers to expand capacity and improve operational efficiency. Oman Cement is currently upgrading its kiln no. 1, which is due for completion in 2014, constructing a new 150 tph cement grinding mill and is planning to modernise its line no. 2. Raysut Cement is building two cement terminals in Duqm Port and in Berbera Port, Somalia, establishing a grinding plant in Yemen and expanding production capacity at its UAE subsidiary Pioneer Cement.

Edited from various sources by Rosalie Starling

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