Saudi Arabia's Mining Sector Attracts $32bn in Investments Amid Reforms
Reforms and incentives are driving growth in the sector, with global players increasingly eyeing opportunities in Saudi minerals.
Riyadh: Saudi Arabia's mining reforms have successfully attracted $32 billion in investments for projects focused on iron, phosphate, aluminum, and copper.
According to Khalid Al-Mudaifer, vice minister of industry and mineral resources, this sum represents nearly one-third of the $100 billion target that the Kingdom aims to achieve in mining sector investment by 2030.
The country's mining sector is expected to significantly increase its contribution to the gross domestic product (GDP), rising from $17 billion in 2024 to an estimated $75 billion by 2030.
In 2023, the industry generated revenues totaling $400 million and is supported by a comprehensive investment roadmap aiming at critical minerals by 2035.
Significant growth has been observed in mineral exploration spending within Saudi Arabia since 2018, which now stands at $100 per square kilometer with an annual growth rate of 32%, outpacing the global average of 6 to 8%.
The number of exploration firms operating in the Kingdom has surged from six in 2019 to 132 today, with a notable proportion (60%) consisting of small and medium-sized enterprises.
Foreign companies comprise approximately 70% of all entities functioning within Saudi Arabia's mining sector.
Saudi Arabia is believed to possess substantial mineral reserves valued at SR9.37 trillion ($2.5 trillion), reflecting the nation's ambitions to elevate mining to the third economic pillar alongside oil and petrochemicals.
In January, the Future Minerals Forum in Riyadh revealed plans for exploration opportunities across 5,000 square kilometers of mineralized belts in 2025, underscoring Saudi Arabia's commitment to expanding its mining industry.
In March, further steps were taken with the introduction of a new incentive package designed to lure foreign direct investment into the sector.
This initiative, spearheaded by the Ministry of Investment in collaboration with the Ministry of Industry and Mineral Resources, encompasses an exploration enablement program aimed at streamlining investment procedures for entities seeking opportunities within Saudi Arabia's mining landscape.
Overall, these developments highlight Saudi Arabia’s efforts to transform its mining sector through strategic reforms, aiming to create a favorable business environment that appeals to both domestic and international mining companies.
According to Khalid Al-Mudaifer, vice minister of industry and mineral resources, this sum represents nearly one-third of the $100 billion target that the Kingdom aims to achieve in mining sector investment by 2030.
The country's mining sector is expected to significantly increase its contribution to the gross domestic product (GDP), rising from $17 billion in 2024 to an estimated $75 billion by 2030.
In 2023, the industry generated revenues totaling $400 million and is supported by a comprehensive investment roadmap aiming at critical minerals by 2035.
Significant growth has been observed in mineral exploration spending within Saudi Arabia since 2018, which now stands at $100 per square kilometer with an annual growth rate of 32%, outpacing the global average of 6 to 8%.
The number of exploration firms operating in the Kingdom has surged from six in 2019 to 132 today, with a notable proportion (60%) consisting of small and medium-sized enterprises.
Foreign companies comprise approximately 70% of all entities functioning within Saudi Arabia's mining sector.
Saudi Arabia is believed to possess substantial mineral reserves valued at SR9.37 trillion ($2.5 trillion), reflecting the nation's ambitions to elevate mining to the third economic pillar alongside oil and petrochemicals.
In January, the Future Minerals Forum in Riyadh revealed plans for exploration opportunities across 5,000 square kilometers of mineralized belts in 2025, underscoring Saudi Arabia's commitment to expanding its mining industry.
In March, further steps were taken with the introduction of a new incentive package designed to lure foreign direct investment into the sector.
This initiative, spearheaded by the Ministry of Investment in collaboration with the Ministry of Industry and Mineral Resources, encompasses an exploration enablement program aimed at streamlining investment procedures for entities seeking opportunities within Saudi Arabia's mining landscape.
Overall, these developments highlight Saudi Arabia’s efforts to transform its mining sector through strategic reforms, aiming to create a favorable business environment that appeals to both domestic and international mining companies.
