“You can’t build Saudi Arabia without cement,” says Majed Al-Osailan, CEO of City Cement. “But the cement industry won’t have a future unless we change how it works.”
That paradox sits at the heart of Al-Osailan’s strategy. As the Kingdom races toward Vision 2030, demand for construction materials is soaring. From major infrastructure projects to the networks connecting new economic zones, cement is the foundation, literally, of the transformation. But it’s also one of the biggest emitters in the world.
Al-Osailan isn’t trying to slow the pace of development. He’s focused on making it viable. Under his leadership, City Cement is reimagining what it means to be a modern industrial company in a carbon-constrained world. The company runs two high-efficiency clinker lines, three mills, and delivers to more than 35 destinations across Saudi Arabia. It is growing, profitable, and now seeks to prove that operational excellence and environmental progress can go hand in hand.
City Cement was the first domestic producer to publish a full sustainability report, and the first to issue verified environmental product declarations (EPDs) for its core cement lines. The Ministry of Industry took note, calling on the rest of the sector to match its lead. But disclosure is just the start.
Behind the scenes, Al-Osailan is building the fuel infrastructure, partnerships, and policy engagement needed to make low-carbon cement not just available, but competitive. He now represents the sector on the national Future Cement Initiative, a public–private platform to accelerate innovation, standard-setting, and incentives across the industry.
“We don’t think of sustainability as an add-on,” he says. “It’s the operating system. And if we do this right, we don’t just lower our emissions, we create a market for better building.”
For Al-Osailan, the hardest part is not the technology. It is the timing. ‘You’re trying to lead when the rules aren’t set, the infrastructure isn’t built, and the incentives aren’t aligned. That’s the cost of being early.'
Cement is hard to decarbonize. Chemically, operationally, and economically, the barriers run deep. In Saudi Arabia, moving early means stepping into a market that’s still taking shape. “Most of the ecosystem just isn’t there yet,” says Al-Osailan, CEO of City Cement. “But someone has to go first.”
Cement emissions come from two main sources. One is the fuel used to power kilns. The other is the chemical process of turning limestone into clinker, the binding agent that gives cement its strength. Cleaner technologies do exist, but they often rely on new supply chains, new incentives, and, in many cases, higher costs. That is the dilemma. Leading the way means absorbing those costs without the market mechanisms or customer demand to balance them out.
In Saudi Arabia, regulation is evolving but still maturing. Standards for what qualifies as green cement are still under development. Emissions reporting is not yet mandatory. Most public tenders continue to prioritize price over environmental performance. Even customers who want lower-carbon materials, including contractors on giga-projects, are often unsure how to evaluate them or how to budget for the difference. “There’s a credibility gap in the market,” Al-Osailan explains. “People want sustainable cement, but they also want proof. And they don’t always want to pay more.”
Scale presents another challenge. City Cement can decarbonize its own operations, but that is only part of the picture. To reduce emissions in a meaningful way, the company needs access to new fuels, low-carbon raw materials, credible verification systems, and buyers who are ready to reward progress. That requires alignment across ministries, municipalities, investors, waste managers, and suppliers, most of whom are still adjusting to the Kingdom’s rapidly shifting sustainability landscape.
For Al-Osailan, the hardest part is not the technology. It is the timing. “You’re trying to lead when the rules aren’t set, the infrastructure isn’t built, and the incentives aren’t aligned. That’s the cost of being early.”
Still, he sees no alternative. Cement is fundamental to Saudi Arabia’s development. If the country is serious about Vision 2030 and net zero by 2060, someone has to step forward. And someone has to prove it can be done.
City Cement’s transformation started on the ground, in operations, under real market constraints. For Al-Osailan, the challenge was clear: “You can’t wait for the whole system to be ready. You have to start changing your own part of it.”
That meant rethinking what it means to be a cement company in the Kingdom today. City Cement still produces millions of tons of clinker and cement annually, but Al-Osailan’s vision goes beyond that. “We have to produce differently, and eventually we have to produce something different,” he explains.
The company began with what it could control – its own energy system. It introduced waste heat recovery to capture energy from the production process and now generates over 16 megawatts of clean power onsite. Alternative fuels came next. “We went from experiments to full integration,” says Al-Osailan. City Cement became one of the first to use tire-derived fuel and waste oils on an industrial scale, reducing dependency on fossil fuel inputs.
But rather than waiting for fuel markets to catch up, the company invested upstream. At the time, Saudi Arabia’s waste management value chain lacked the infrastructure and specialized companies needed to convert municipal waste into alternative fuels. To bridge this gap, City Cement established Green Solutions for Environmental Services, the first Saudi-based company dedicated to transforming municipal waste into industry-grade refuse-derived fuel (RDF). The latest partnership with Saudi Investment Recycling Company (SIRC) is scaling this even further, with a dedicated RDF facility in Riyadh designed to serve multiple industries. “This is how we change the economics,” says Al-Osailan. “By making the fuel ourselves.”
Fuel innovation was only the first phase. Cement’s largest emissions come from clinker. City Cement began redesigning its product mix, cutting its clinker factor below 90% while maintaining performance. Its Green Finishing Cement now contains more than 42% supplementary cementitious materials, enabling contractors to earn credits under LEED and other green building schemes.
We are not waiting for regulation. We are trying to shape it.
To secure its future feedstock, City Cement once again faced a landscape similar to that of the fuel market–no comprehensive local database, limited geological studies, and few specialized service providers capable of supporting its ambitious feedstock decarbonization mission. Recognizing that sustainable materials could not be scaled without groundwork, the company founded Nizak Mining Company, a lighthouse enterprise created to fill this gap. Nizak took the lead in conducting national-scale studies, building a reliable resource database, and planning and executing mining and processing operations to make low-carbon raw materials available for domestic consumption. Its first major achievement was the launch of a joint venture with Next Generation SCM to localize production of calcined clay using CemGreen’s modular CemTower technology. These moves allow City Cement to offer customers verified low-carbon options at scale and with reliable delivery. “Contractors on giga-projects need certainty,” Al-Osailan explains. “They can’t just buy the greenest cement on the market. They need to know it works, it’s certified, and it shows up on time. That’s what we’re solving for.”
None of this works without transparency. In 2024, City Cement became the first domestic producer to publish a full sustainability report, along with independently verified Environmental Product Declarations for all three of its cement products. The Ministry of Industry responded by encouraging the rest of the sector to follow suit. “We are showing what can be done,” says Al-Osailan. “We are not waiting for regulation. We are trying to shape it.”
This isn’t just about operational upgrades. City Cement is actively redefining what leadership looks like in one of the world’s hardest-to-abate industries. “Being early comes at a cost,” Al-Osailan acknowledges. “But it also gives us a head start and a chance to influence the future.”
City Cement is also helping shape the future of the industry beyond its own gates. Al-Osailan was elected to help lead the Future Cement Initiative (FCI), a national platform convened by the Ministry of Industry, the Ministry of Energy, the Public Investment Fund, and KAUST. The initiative aims to accelerate R&D, define shared sustainability standards, and build the enabling infrastructure for greener cement and concrete in Saudi Arabia. “We are not just trying to compete,” says Al-Osailan. “We are trying to move the entire market forward.”
The transformation was as much about people as it was about systems. By engaging employees and embedding sustainability into everyday work practices, City Cement turned its decarbonization journey into a shared mission. This collective mindset has strengthened ownership, collaboration, and long-term commitment across the organization.
“When existing infrastructure could not meet the demands of low-carbon cement, City Cement built its own.”
City Cement’s decarbonization journey shows how companies in hard-to-abate sectors can lead meaningful change by designing for system-level progress rather than isolated performance.
City Cement moved early, before clear incentives or customer mandates were in place. By doing so, it positioned itself to help shape the frameworks, standards, and supply chains that others will rely on in the future.
Low-carbon solutions are not side projects. City Cement integrated them directly into production, procurement, and investment decisions. From alternative fuels and low-carbon feedstock to digital tools, sustainability is treated as core to the company’s competitiveness.
In a market still learning to value low-carbon performance, credible data is essential. Verified product declarations, transparent reporting, and open benchmarking help City Cement give customers and other stakeholders confidence.
When existing infrastructure could not meet the demands of low-carbon cement, City Cement built its own. It invested in calcined clay production, launched a mining company to secure alternative feedstocks, and partnered to scale refuse-derived fuel. These moves expanded access to critical inputs and gave the company more control over its decarbonization path.
Through its leadership in the Future Cement Initiative and close collaboration with key ministries, City Cement is helping to define the standards, incentives, and policy frameworks needed to scale low-carbon cement across the Kingdom. By showing what’s possible and earning trust, the company is helping to turn early action into systemic change.
What City Cement is building goes beyond one company. If it can prove that decarbonization is possible and profitable in one of the world’s toughest markets, it will not only unlock growth for itself.
For Al-Osailan, the next chapter is about scale, credibility, and coordination. The technical building blocks are in place. Now the challenge is turning early wins into system-wide impact.
City Cement is expanding its investment in alternative fuels, working with Saudi Investment Recycling Company to bring a large-scale RDF facility online in Riyadh. The goal is to process municipal waste into fuel that can be used not only by City Cement but also by other industrial players across the Kingdom. “It’s not just about decarbonizing our own footprint,” says Al-Osailan. “It’s about proving that waste can become an asset for the whole ecosystem.”
In parallel, the company is preparing to scale production of calcined clay. Its joint venture with Next Generation SCM and CemGreen will add modular units to produce low-carbon substitutes for clinker, using locally sourced materials. This move is designed to serve rising demand from giga-projects and reduce dependency on imported or carbon-intensive feedstock.
Grid connection and renewable energy are another focus. By shifting away from captive power and toward cleaner electricity, City Cement expects to reduce Scope 2 emissions significantly. The company is also investing in digital energy management systems to bring electricity consumption below 111.5 kWh per ton. These efforts align with its broader commitment to cost-efficiency and competitiveness as sustainability regulations tighten.
An important focus of Al-Osailan is to continue shaping the rules of the game. Through his leadership role in the Future Cement Initiative, he is working with the Ministry of Industry, the Public Investment Fund, KAUST, and others to define standards and roadmaps for green cement. “We need to make it easier for others to follow,” he says. “That means setting baselines, creating demand signals, and building the verification tools that make progress real.”
What City Cement is building goes beyond one company. If it can prove that decarbonization is possible and profitable in one of the world’s toughest markets, it will not only unlock growth for itself. It will set a new standard for Saudi Arabia’s cement industry, turning national ambition into a lasting impact.
This case series was developed as part of a research project supported by Capgemini Invent.
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