Qassim Cement Secures SAR 400M SIDF Funding

Qassim Cement Company has signed a financing agreement with the Saudi Industrial Development Fund on 13 August 2026 to fund a fourth production line at its plant in Buraydah, Qassim Region, raising the facility's clinker capacity to 10,000 tonnes

The financing amount is SAR 400,000,000, structured over a nine-year period that includes a two-year grace period and a seven-year repayment schedule. The company said the funding will support the new line, which is set to replace certain older production lines while improving energy efficiency and advancing environmental protection goals.

The fourth line is being built under an engineering, procurement and construction (EPC) contract with Sinoma International Engineering, valued at USD 298 million (about SAR 1.12 billion), with a contract duration of 24 months. Guarantees provided for the Fund's financing include a promissory note, endorsement of the project's insurance policies in favour of the Fund, and a mortgage of project assets.

Qassim Cement plans to combine the Fund's financing with Shariah-compliant credit facilities from commercial banks to meet its funding needs and reduce overall financing costs. A separate SAR 1.5 billion Shariah-compliant credit facility from Saudi National Bank also supports the same project and working capital needs, over a 10-year tenure backed by a promissory note.

For the local community and businesses across the Qassim Region, the expansion signals continued industrial investment and could help meet demand for building materials as construction activity grows across the Kingdom. The move aligns with broader efforts to modernise production capacity and strengthen environmental performance in the cement sector.

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