Raysut Cement’s Strong H1 Performance: Implications for Investors and Business Growth in Oman
MUSCAT, JULY 19 — Raysut Cement Company (RCC) Group, the largest cement producer in Oman, has reported a substantial financial recovery in the first half of 2025, signaling a pivotal moment in its evolution as a resilient industry leader.
The Group’s consolidated revenue surged by 30.8%, reaching RO 41.3 million, while net losses were cut by 38% compared to the same period in 2024. This performance highlights the successful strategies implemented across its operations, particularly from its UAE subsidiary, Pioneer Cement Industries, and its expanding presence in the Maldives.
Pioneer Cement Industries (PCI), RCC’s wholly owned subsidiary in the UAE, has played a crucial role in the Group’s resurgence. Its capacity utilization increased to 88% during the first half of the year, a significant rise from 40% in the corresponding period of 2024. This success is attributed to strengthened operational discipline and a renewed focus on commercial activities. PCI attracted bulk cement clients in the UAE, boosting monthly sales by an average of 50,000 metric tonnes. The company also developed premium clinker products with higher profit margins and implemented a smart pricing strategy to enhance market competitiveness.
In an interview with the Observer, Acting CEO Dr. Hilal Saif al Dhamri emphasized the significance of these strategic advances. “Pioneer Cement’s recovery is a textbook example of how operational excellence and smart market positioning can yield substantial results,” he stated. “We have restored its reputation and repositioned it as a high-performing, quality-focused asset within our Group.”
RCC’s strategic expansion into the Maldives has proven successful, with its 75%-owned subsidiary, Maldives Raysut Cement Company, becoming a preferred supplier for key infrastructure projects in the country. The Group currently holds a 35% share of total cement imports to the Maldives. Despite logistical challenges common in island markets, the company has introduced efficient distribution models and launched specialized marine-grade cement tailored for coastal construction needs.
“The Maldives is a key component of our international growth strategy,” Dr. Al Dhamri noted. “We’ve established ourselves as a trusted partner in national development projects, and our localized approach is fostering long-term customer confidence.”
In terms of sustainability, RCC is setting benchmarks at its flagship Salalah plant. The company is implementing a Waste Heat Recovery System expected to generate 9MW of clean electricity annually, reducing CO₂ emissions by approximately 50,000 tonnes each year and saving around RO 1.5 million in energy costs. Additionally, a Refuse-Derived Fuel (RDF) project is being introduced to process about 700 tonnes of municipal waste daily into alternative fuel, which will replace 15% of the plant’s natural gas consumption. These initiatives are in line with Oman’s environmental objectives and exemplify the financial viability of green technology in heavy industry.
At the Sohar Cement Factory, monthly sales increased by 32,000 metric tonnes, bolstering group-wide performance. Strategic price optimization in export markets has further enhanced revenues, contributing to a more sustainable business model.
With these accomplishments, RCC is entering a new phase of sustained growth under Dr. Al Dhamri’s guidance. “We’ve established a solid foundation by revitalizing our core operations, expanding internationally, and leading in sustainability,” he remarked. “Our focus now is to accelerate our momentum and secure our position as a regional industry leader.”
As 2025 unfolds, Raysut Cement stands as a model of industrial transformation, integrating operational excellence, market diversification, and environmental responsibility to drive long-term value for Oman’s cement sector and the broader region.
Special Analysis by Omanet | Navigate Oman’s Market
Raysut Cement Company’s robust turnaround signals a resilient market landscape for businesses in Oman, presenting a key opportunity for investments in sustainable practices and operational excellence. With its expanded international reach and innovative product offerings, companies should assess strategic partnerships in the GCC and Maldives, while entrepreneurs can explore niche markets in eco-friendly construction solutions. Smart investors must focus on firms prioritizing sustainability, as this trend aligns with Oman’s long-term economic and environmental goals.
