Qassim Cement Gets SAR 400M Loan for New Line

Qassim Cement Company has secured a SAR 400 million financing facility from the Saudi Industrial Development Fund to expand its operations in Saudi Arabia's cement sector. Valued at roughly USD 107 million at the time of signing, the agreement was finalized on 13 August 2026.

The facility is structured as a medium- to long-term development loan and will finance the construction of a fourth production line at the company's cement plant in the Buraydah region. The new line is planned to have a capacity of 10,000 tonnes The loan carries a nine-year term, including a two-year grace period on principal followed by seven years of repayments, and is denominated in Saudi riyals with promissory note guarantees provided by the company.

To meet its total funding requirements and lower overall financing costs, Qassim Cement plans to combine the development loan with Sharia-compliant credit facilities from commercial banks in Saudi Arabia. The fourth line project was previously covered by a contract worth about SAR 1.12 billion (around USD 298 million) signed with Sinoma International Engineering in August 2025 to design and build the line.

The project aims to increase production capacity, improve energy efficiency, and reduce environmental impact by replacing older, less efficient lines at the existing plant. The financing is tied to Saudi industrial development policy, with the fund using such facilities to strengthen domestic manufacturing capacity in heavy industries such as cement — a sector that underpins the kingdom's ongoing construction and infrastructure growth.

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