The year 2012 is likely to witness a slump in new cement production capacity in Saudi Arabia. As per the latest NCB Capital report on the Kingdom’s cement sector, an inability on the part of Yanbu and Southern Cement to receive increased subsidized fuel quantities from Saudi Aramco, could lead to delays in commencement of new start-ups. The fuel supply issue is likely to impact new cement production capacity to the tune of 4.5 million tonnes expected to come up in Saudi Arabia in 2012. The imbalance in the demand-supply scenario is particularly expected to impact the western region of the country, where demand is expected to be huge.Demand for cement in 2011 was led largely by the private sector while demand from the government sector, which is forthcoming, is likely to steer growth in the cement industry in the coming years.