Reuters are reporting that Saudi Arabia has lifted a ban on exporting cement.
The relaxing of the ban comes as Saudi Arabia’s construction industry is suffering from the impact of lower oil prices, which has resulted in the government cutting back on spending on many projects.
Cement companies have welcomed the move but are awaiting details of the new rules from the Ministry of Commerce.
The Saudi government imposed a ban on cement exports in 2008 to push prices down and accommodate demand from large government-funded infrastructure projects, although some companies were allowed to export at prices lower than those in the local market.
Shares in cement companies jumped on the news, with the cement index finishing the day 5.3% higher. Southern Province Cement Company and Saudi Cement, the two largest cement firms by market value, rose 5.8% and 5.7% respectively.
Edited from source by Joseph Green. Source: Reuters