Al-Jazira Trading in the Saudi Financial Market: Concept and Impact on Cement

Al-Jazira Trading is a term used among investors and analysts in the Saudi financial market to refer to the trading activities or investment services provided by Al-Jazira Group, particularly through its investment arm "Al-Jazira Capital." Although there is no independent platform bearing this name, it often refers to benefiting from the financial brokerage system, managing investment portfolios, and providing electronic trading solutions for individuals and institutions through Al-Jazira's diverse channels. Al-Jazira Capital operates within a regulatory framework under the supervision of the Saudi Capital Market Authority, offering its services online and through branches, and issuing market reports and evaluations that help investors understand sector trends. Al-Jazira Trading facilitates the immediate execution of buy and sell orders in the Saudi market (Tadawul), in addition to investment management, margin trading financing, and research reports. These services are closely linked to the Saudi financial market, which is the only platform for trading listed stocks in the Kingdom. Through this role, Al-Jazira Group contributes to enhancing liquidity and enabling individuals to participate in investments smoothly and efficiently.

The Saudi financial market (Tadawul) was established in 2007 as a joint-stock institution overseen by the Saudi Capital Market Authority (CMA), and it is the only platform for trading stocks, bonds, and sukuk in the Kingdom. The market includes thousands of listed companies across various sectors such as banking, petrochemicals, basic materials, energy, and more. Licensed brokers, such as Al-Jazira Capital, act as intermediaries between investors and the market, committing to apply the strict rules of the authority, including investor protection, transparency, and full disclosure. Brokerage services include immediate order execution, portfolio management, research reports, and electronic trading solutions. The importance of brokers is highlighted in facilitating access to market information and analyzing financial data, which supports investor decisions. They also provide additional services such as margin trading, investment consulting, and underwriting financing. With digital developments, electronic platforms have become a key tool for increasing liquidity and attracting local and foreign investors. The role of brokers reflects on market performance through increased trading volumes, improved efficiency, and enhanced investor confidence in the regulatory framework of the Saudi financial market.

The Saudi financial market index (TASI) witnessed notable positive performance during 2024 and 2025, supported by the recovery of oil prices and the return of economic activity after the COVID-19 pandemic. The index surpassed 11,000 points for the first time since 2019, reflecting investor confidence and the recovery of financial assets. Daily liquidity rose to over 10 billion Saudi Riyals, due to the market opening up to foreign investors and increased local participation. Leading stocks, particularly in the banking sector and major industrial companies, played a significant role in driving the index. Cement stocks, such as Hail Cement (3001), benefited from large government projects led by Vision 2030, including housing and infrastructure projects. This dynamic performance reflects the Saudi market's ability to adapt and grow, despite global economic challenges. The evolving regulatory environment and the expansion of financial products have enhanced the market's depth and attractiveness to individual and institutional investors.

Al-Jazira Capital, the investment arm of Al-Jazira Group, offers a comprehensive range of financial brokerage and electronic trading services. These services include executing buy and sell orders directly in the Saudi financial market, managing investment portfolios, margin trading, and public offering services. The electronic platform of Al-Jazira Capital provides an easy-to-use interface that allows investors to track stock prices, access market reports, and execute trades efficiently. The company also provides periodic analyses and research reports that help investors understand sector developments and make decisions based on accurate and reliable data. These services aim to facilitate the participation of individual and institutional investors in the Saudi financial market, ensuring the highest levels of security and transparency. Al-Jazira Capital is committed to applying global best practices in risk management, protecting customer data, and developing innovative investment products.

Hail Cement Company (3001) is one of the prominent industrial companies listed in the Saudi financial market, located in the Hail region of northern Saudi Arabia. Established in 1987, the company operates under the umbrella of the Saudi Cement Group, specializing in the production and marketing of cement and clinker. The company's production capacity exceeds 10 million tons annually, making it a key player in meeting local and regional demand for cement. Hail Cement is characterized by advanced infrastructure and the ability to expand to meet the requirements of major national projects, especially those related to Vision 2030 and housing programs. The company is known for its prudent financial policies and regular dividends, making it a preferred choice for many investors in the basic materials sector. The company continuously seeks to develop its operations, improve production efficiency, and adopt innovation in its products to ensure sustainability and competitiveness.

Hail Cement's stock (3001) experienced significant financial development in 2024 and 2025. The stock price reached approximately 150 Saudi Riyals in mid-2024 and gradually increased to 170 Riyals by the end of the year. With nearly 100 million shares, the market value reached about 17 billion Riyals. The price-to-earnings (P/E) ratio ranged between 10 and 12, reflecting a moderate valuation and stable earnings growth. Regarding distributions, the company announced cash dividends of 4 Riyals per share for 2024 (40% of the nominal value), continuing its policy of distributing 30-50% of profits annually. The first quarter of 2025 saw a 15% increase in net profit compared to the previous year, driven by increased local sales and stable operating costs. These financial indicators reflect the company's strong financial position, its ability to face market challenges, and its capacity to capitalize on growth opportunities in the cement sector.

The cement sector is one of the most vital sectors in the Saudi financial market, given its pivotal role in supporting infrastructure and housing projects. The Kingdom leads the Gulf countries in cement consumption, driven by Vision 2030 projects and housing programs, including the construction of over 700,000 new housing units. After a period of decline between 2019 and 2021 due to pandemic restrictions, the sector has witnessed a remarkable recovery with the return of large government projects. However, the sector faces challenges such as rising energy costs, transportation and logistics costs, in addition to the need to shift towards environmental sustainability and reduce the carbon footprint of production. At the same time, new opportunities are emerging thanks to technology, expanding export capabilities to neighboring countries, and benefiting from mega-projects like NEOM and the Economic City of Jeddah. Mergers and integrations between companies, as in the case of Hail Cement and Najran, represent a strategic step to enhance efficiency and competitiveness in the local and regional market.

Hail Cement faces strong competition from local companies such as Najran Cement (3040), which is preparing to merge with it into the "Red Sea Cement" entity, in addition to other major companies like Yamama Cement (2000) and Al-Jouf Cement (2240). There is also competition from multinational companies entering the market through partnerships and joint investments. The merger of Hail Cement with Najran is a strategic step that enhances market share and production capacity, helping to address rising cost challenges and achieve greater operational efficiency. The new entity is expected to unify resources, improve the supply chain, and increase export opportunities. It will also enable innovation in cement products and leverage government initiatives to support clean energy, enhancing the sector's competitiveness against regional and global competitors.

Vision 2030 projects have directly contributed to the recovery of the Saudi cement sector, as the Saudi government launched plans to build thousands of housing units, develop infrastructure, and construct smart cities like NEOM. This has helped raise local demand for cement and increase sales for national companies like Hail Cement. The company has also benefited from government initiatives to support the transition of cement plants towards using clean energy, which has helped reduce operating costs and improve profit margins. As major projects continue to be implemented, cement companies are expected to sustain revenue and profit growth, supported by state policies that encourage innovation, improve production efficiency, and support exports to neighboring markets.

At the end of 2024, Hail Cement announced significant expansion plans, including the establishment of two new projects in the Hail region at an estimated total cost of 1 billion Riyals. These projects aim to increase production capacity and meet the growing demand from housing and renewable energy projects. The company is also aligning with initiatives to transition to clean energy by shifting to natural gas and renewable electricity, which reduces operating costs and enhances the company's profits in the medium to long term. In this context, the merger of Hail Cement with Najran Cement within the Red Sea Cement entity is a strategic development that enhances the company's market position and increases its competitive capacity regionally. These steps support innovation in cement products and open new horizons for export and growth.

The cement sector faces increasing challenges regarding environmental sustainability due to global and local pressures to reduce carbon emissions and rationalize resource use. Hail Cement has responded to these challenges by launching initiatives to convert part of the energy used to clean sources such as renewable electricity and natural gas. These initiatives contribute to reducing operating costs, increasing production efficiency, and improving the company's image before regulatory bodies and investors interested in sustainability. The company is also working on developing techniques for recycling industrial waste and using it in the manufacturing process, aligning with the Kingdom's trends towards a circular and green economy. These efforts are part of a broader strategy aimed at achieving a balance between profitability and environmental protection, ensuring sustainable growth in the long term.

Individual and institutional investors can trade Hail Cement shares (3001) through electronic platforms provided by Al-Jazira Capital and other licensed brokerage firms in Saudi Arabia. The process begins by opening a trading account with one of these companies, then depositing the required funds, and accessing market data through the electronic platform. These platforms provide real-time tracking of stock prices, executing buy and sell orders, and managing investment portfolios easily. Investors can also benefit from research reports and financial analyses issued by brokerage firms to support their investment decisions. These companies adhere to the rules of the Capital Market Authority, ensuring transparency, security, and protection of investors' rights. It is important for investors to recognize that trading stocks involves risks, and they should always consult a licensed financial advisor before making investment decisions.

Despite the attractiveness of investing in the Saudi cement sector due to large government projects, investors face a range of risks and challenges. Among the most prominent risks are fluctuations in energy and raw material prices, which may directly affect profit margins. Intense competition among local and global companies also poses a challenge in maintaining market share and price levels. Additionally, changes in financial and economic policies, or a slowdown in real estate growth, may lead to a decline in demand for cement. Companies also face increasing pressure from regulatory bodies and society to adopt more environmentally sustainable practices. Therefore, investors should carefully study all these factors, review reliable financial and analytical data, and avoid making investment decisions without consulting a licensed financial expert.