Saudi Arabia: More than 70 people are to be investigated in connection with the current cement crisis in Jeddah, which has seen cement become expensive and scarce since the start of 2012. Trucks owned by the accused were captured while selling cement at inflated black market prices in various parts of the city.
A special committee, formed by Jeddah Govenor Prince Mishaal bin Majed, raided about 15 warehouses where cement was being sold by foreign dealers. It is claimed that the dealers had signed agreements with contractors that were executing a number of government projects to sell them cement at high prices. "This has created an acute shortage in the quantities of cement available in the market," he added.
Prior to the commencement of the investigation, local press had reported angry crowds at points of sale and said that security forces had to intervene in some instances. Market sources believe the crisis was created by the inability of the factories to work at full capacity because they were not given enough fuel.
Abdullah Al-Ammar, a contractor, did not see any justification for the shortage. "This is an artificial crisis created by some traders who want to monopolise the cement market and stack it away in their stores, only selling it when the price goes up," he said. Al-Ammar asked the Commerce Ministry to impose harsher punitive measures against traders who were caught selling cement on the black market or hiding it. He hoped that the problem would be alleviated when two new cement factories are commissioned later in 2012.
