Jeddah — Manipulation of the cement market by foreigners has created a shortage in supplies in Jeddah, reported Al-Madinah newspaper. Consumers believe foreign workers have resorted to increasing prices to compensate for the increase in work permit fees ordered by the Ministry of the Labor. The fee increa sed from SR200 to SR2,400 a year for expatriate workers of companies that did not meet Saudization quotas. Some consumers said just in three days the price of one bag of cement jumped from SR12 to SR18 and foreign workers were responsible. Abdullah Al-Shihiri, a contractor, said these workers instigated the disappearance of cement from the market. He said: “The foreign workers are directly responsible for this unjustifiable surge in prices. “We are forced to just accept the situation because we can't afford any interruption in construction work.” He said he made a deal with a truck driver to supply him with cement to complete some construction work and was told by the driver that he would only supply him with the supplies he needed late at night and at SR18 a bag. Saleh Al-Ghamdi sees the rise in the prices of the cement as natural because of the ministry's decision to increase renewal fees for work permits. He said most citizens have felt the negative consequences of this decision. He said: “By definition, the manufacturers and importers who depend on foreign workers will not bear this increase, thus the consumers pay the price. “The decision will affect many sectors.” Cement dealers attributed the sudden shortage of the cement to internal disputes in the factories. “This affected the flow of cement into the markets. Thus the remaining quantities are being smuggled and sold for SR18 a bag.” Ministry of Commerce sources said the ministry is coordinating with cement companies to secure supplies for Jeddah. They said the companies discovered that their truck drivers were selling their shipments on the black market. Saqr Ghufair, executive president of the Cement Co in the Southern Region, said: “It's normal that a crisis or shortage happens from time to time. “Thus any technical defect in the production lines can cause a crisis.” Abdullah Redwan, head of the contractors committee at the Jeddah Chamber of Commerce, said the increase in demand for cement in Jeddah created the crisis but it would not last long.
