In today’s fast-evolving global market, the demand for raw materials critical to construction and manufacturing industries remains high despite environmental concerns and the increasing emphasis on clean technologies. At Maxwer, we are at the forefront of adapting to these changes while providing essential trade financing solutions that bring liquidity to commodity players. Our recent shipment of thermal coal to the UAE marks a new milestone in supporting the local cement industry, crucial for the region’s infrastructural growth.
In the cement manufacturing process, coal is primarily used to heat the kiln to the high temperatures needed to produce clinker, reaching between 1400°C and 1500°C. This intense heat is substantial for the chemical reactions that convert raw materials like limestone and clay into clinker.
To minimize the environmental impact, modern plants are increasingly deploying cutting-edge carbon capture technologies. Through innovations in cleaner combustion processes, emissions control technologies, and efficiency enhancements, these facilities are setting new standards in environmental responsibility. Advanced carbon capture and storage techniques have shown potential to reduce carbon dioxide emissions by up to 90%, according to industry reports.
A lifeblood for ambitious infrastructural and housing projects
As the world’s urban landscape expands, so does the demand for construction materials. Nevertheless, the drivers of cement production in the MENA countries vary significantly across the region.
In the Middle East, particularly in the UAE and Saudi Arabia, government-backed projects significantly drive the demand for cement. In the UAE, for instance, this includes major expansions in Abu Dhabi and new developments in Dubai. Meanwhile, in Saudi Arabia, the push comes primarily from large-scale initiatives like Neom and the Red Sea projects, which are designed to stimulate the kingdom’s tourism sector.
On the other hand, in populous North African nations such as Egypt, Morocco, and Algeria, the push for more housing is spurring private sector-led construction initiatives.
Urbanization and population growth have led to a surge in housing projects aimed at meeting the growing demand for homes in these countries. In Egypt, the government’s efforts to expand new urban centers are complemented by private developments that aim to address the housing shortage. Morocco and Algeria are experiencing similar dynamic, with private developers playing a crucial role in constructing new residential units to accommodate the rising urban population. These trends underscore the vital role of cement in building sustainable and livable communities across the region.
By the Numbers: Cement Regional Footprint
The cement production in the UAE and the broader Middle East has been significant due to the extensive infrastructure and construction activities in the region.
In 2022, the UAE produced approximately 45 million tons of cement, placing it among the top producers in the MENA region while Saudi Arabia volumes stands at 85 million tons. Coming to North African countries, Egypt led the region with 92 million tons, followed by Algeria with around 41 million tons.
Overall, the MENA region produced a total of 430 million tons of cement, which represented about 17% of global production, excluding China and India.
The demand for cement in this region is expected to continue growing, with projections indicating a 3-4% growth in 2023-2024, supported by numerous infrastructure projects and a general increase in construction activities.
At Maxwer, our approach goes beyond mere trade – we aim to deliver comprehensive reliable solutions that encompass support for crucial local industries. We consider risk management as the foundation of our business model. The hands-on approach allows us to manage and mitigate risks effectively throughout the supply chain. This was evident in our recent operations in the UAE, where our team was on-ground to observe the discharging operations and quality assurance processes, safeguarding our transactions and securing customer satisfaction.
