How Will UAE Cement Firms Leverage the GCC’s Record $1.73 Trillion Project Pipeline?

Rising infrastructure investment across the Gulf Cooperation Council (GCC) is reshaping the regional cement landscape.

 As of 2025, the GCC’s active project pipeline is valued at USD 1.73 trillion, driving sustained demand for cement across priority sectors such as transport, logistics, housing, and industrial development. The regional cement market is expected to reach USD 8.57 billion by year-end, underpinned by large-scale, state-led construction programs.

Within this context, the UAE has emerged as a key player, capturing 49.2% of all GCC project awards in Q2 2025 more than any other member state. This increase in project activity is reinforcing the UAE’s role as a strategic production and export hub for cement and clinker supply across the region.

In response, leading UAE manufacturers such as Emirates Steel Arkan, Sharjah Cement, and Arkan are scaling operations, investing in port logistics, and integrating low-carbon materials like Ground Granulated Blast Furnace Slag (GGBFS) to enhance sustainability and regional competitiveness.

This article examines how UAE cement producers are structurally aligned to meet regional infrastructure demand through expanded capacity, favourable export pricing, and supply chain optimization.

GCC Infrastructure Investments Accelerate UAE Cement Sector Expansion

• Infrastructure development remains the primary driver of cement demand across the GCC, supported by state-backed capital expenditure programs and long-horizon national development strategies.
• As of Q2 2025, the combined value of pre-execution project pipelines across GCC member states stands at USD1.73 trillion, with the UAE accounting for USD 417.9 billion. Saudi Arabia remains the largest market by value, but the UAE currently leads in active project awards, with USD 14 billion in contracts granted in Q2 alone.
• Cement-intensive verticals such as rail corridors, port expansion, logistics zones, and mid-rise housing continue to be prioritized. The UAE’s proximity to demand centers, efficient port infrastructure, and road connectivity give producers a logistical cost advantage over international suppliers.
• With GCC-wide cement demand projected to reach USD 8.57 billion by end-2025, domestic producers within the bloc are expected to remain the primary suppliers.

The UAE's ability to respond through export scale, pricing leverage, and production agility positions it as a critical node in the region’s cement supply chain. 

UAE-Based Cement Firms Strengthen Trade with GCC Neighbors

   Price Advantage and Geostrategic Location Drive Export Momentum

• In 2024–2025, average export prices for Ordinary Portland Cement (OPC) stood at USD 195 per ton, while clinker was priced at USD 150 per ton, both exceeding domestic market levels by 20%.
• This pricing differential, combined with the UAE’s proximity to high-growth GCC markets, reinforces its role as a strategic cement supply hub in the region.

Regional Infrastructure Demand and Logistics Bolster Trade Routes

• Core export destinations include Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain, all undergoing synchronized infrastructure expansion. Mega-projects such as NEOM (Saudi Arabia), Duqm SEZ (Oman), and Silk City (Kuwait) are sustaining long-term cement and clinker demand.
• Export flows are supported by advanced port infrastructure, with shipments routed via Jebel Ali (Dubai), Mina Zayed (Abu Dhabi), and Khor Fakkan (Sharjah). These are further integrated with inland logistics corridors, enabling competitive delivery costs and consistent supply.

Capacity Restoration and Contract Strategy Enhance Export Resilience

• In June 2025, Fujairah Cement resumed operations after a multi-month technical halt, restoring key export capacity and reinforcing supply-side stability.
• Leading producers including Emirates Steel, Arkan, Sharjah Cement, and Star Cement have intensified focus on Free on Board (FOB) contracts, particularly for clinker exports to Oman and OPC shipments to Kuwait and Qatar.

Cement Players Realign Operations for GCC Growth

The UAE cement sector remains consolidated, with production capacity concentrated among six leading manufacturers. Together, these firms accounted for approximately 48% of national output in 2024, supporting both domestic distribution and GCC-directed exports.

Emirates Steel Arkan, Sharjah Cement, and UltraTech Cement (UAE operations) each maintain annual outputs exceeding 1.5 million metric tons, positioning them as key contributors to regional supply reliability.

Explore detailed production-based market share of top UAE cement manufacturers in our full industry analysis.

Foreign Investment Signals Market Confidence

 In May 2025, Italy-based Buzzi Unicem, through its MENA subsidiary TC Mena Holdings, acquired a 63% controlling stake in Gulf Cement Company PSC, based in Ras Al Khaimah.

The transaction, executed via a mandatory cash tender offer, marks one of the most notable foreign entries into the UAE cement market in recent years, signalling investor confidence in the sector’s export-led trajectory.

Operational Focus Shifts to Efficiency and Logistics

 Operational strategies across the sector are shifting from greenfield expansion toward asset optimization and logistics readiness. Emirates Steel Arkan has initiated port terminal upgrades at its Al Ain facility to support outbound clinker capacity.

Sharjah Cement and Pioneer Cement have deployed bulk dispatch automation to improve shipping turnaround times and reduce FOB costs. Meanwhile, operational resilience remains a critical concern.

Resilience and Supply Flexibility Gain Importance

The production outage and recovery at Fujairah Cement in mid-2025 highlights the need for capacity buffering amid tighter regional project timelines.

Firms are increasing clinker stockpiles and investing in packaging automation to enhance supply chain responsiveness and meet fluctuating GCC project schedules.

Sustainable Input Strategy Gains Priority

 Increased GGBFS Consumption with High Import Dependence

In 2024, total GGBFS consumption in the UAE reached 3.72 million tons, a 7.1% year-over-year increase. Despite this growth, the supply base remains import heavy. Imports accounted for 2.28 million tons, roughly 61% of total consumption.

The balance was met through limited domestic recovery from steel production. Export volumes remained low, at 144,000 tons.

Material Supply Strategy and Operational Adjustments

Given the reliance on imported GGBFS, producers are securing long-term feedstock agreements and evaluating alternative SCMs such as fly ash and calcined clays to reduce exposure and diversify inputs.

Policy Alignment and Technology Deployment

The UAE’s Industrial Decarbonisation Roadmap (2024) has designated cement as a priority sector. Emirates Steel Arkan’s pilot of Magsort technology aims to reduce emissions by 35% and increase output by 20%.

Strategic Relevance to Infrastructure Delivery

As embodied carbon thresholds become standard in GCC infrastructure procurement, producers capable of integrating low-carbon SCMs will have a distinct competitive advantage.

Conclusion

The UAE cement sector is structurally aligned to support the GCC’s infrastructure agenda. With scale, export competitiveness, and policy-driven sustainability transitions, leading producers are well-positioned to meet demand while adapting to evolving standards.

Export strategies, logistics investments, and GGBFS integration reinforce the UAE’s role as a key supply hub. As GCC project pipelines expand, competitiveness will depend on both operational readiness and environmental compliance.

For deeper insights and market intelligence, Ken Research provides ongoing coverage of the UAE and GCC cement industries, including export trends, capacity strategies, and ESG compliance metrics.