Saudi Cement Makers Beat Tadawul Index on $500 Billion Government Spending - Bloomberg

Saudi Arabia’s cement makers are beating the benchmark stock index on speculation they will benefit from about $500 billion in government spending and projects including the world’s tallest tower in Jeddah.

The Tadawul All Share Cement Index, which includes nine stocks, has climbed 19 percent this year, the third-best performance after media and retail stocks, and compared with a drop of 7.3 percent for Saudi Arabia’s Tadawul All Share Index. (SASEIDX) Cement companies offer a dividend yield of 6.6 percent, second only to transport companies, among the 15 index groups in the Tadawul.

“The sector will continue to benefit from large infrastructure spending under way in Saudi Arabia,” said Yong Wei Lee, who helps oversee about $1.2 billion as a senior fund manager at Emirates NBD Asset Management in Dubai.

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