Saudi Arrested at Least 14 People and Seizing Ten Trucks

According to the Al Eqtisadiah business daily, ministry inspection teams and police swooped in on businesses in Jeddah and other parts of the western region on January 5, arrested at least 14 people and seizing ten trucks. The raids followed reports about unreasonable price hikes of cement in Jeddah and other cities of the region. The price of a cement bag rose to SAR18 from SAR15 ($4.80 - $4) at Jeddah market – which sparked widespread anxiety among distributors and customers over possible further price increases. The cost of cement in Saudi Arabia is strictly governed, as are exports of the product. A ban on cement exports in from Saudi Arabia three years ago put in place to ensure the kingdom has enough cement supplies for its vast construction projects. This includes a ban on cement exports to all countries except Bahrain, where weekly exports were halved from 50, 000 to 25, 000 tonnes. The restrictions also stipulated that local cement companies were required to keep 10% of their products in reserves, and that they would sell bagged cement in the domestic market at $52 per tonne. Following the raids, the ministry has issued directives throughout the kingdom to further intensify market monitoring. The branches have also been instructed to send daily reports to the ministry about market conditions to ensure stability of cement prices. According to a government official, the ministry has been in touch with all cement factories in the Kingdom asking them to provide specific details about production and supply in the local market. He said that "All the companies have assured us that they would make available an adequate supply of cement at moderate prices and that was in coordination with the ministry. They have also informed us that their prices would continue to remain the same. " Source: uaecement.com