What's Happening?
Saudi Arabia's mining sector is experiencing significant growth, with the number of licensed mining companies increasing from six in 2019 to over 150. The country's mineral potential is estimated at US$2.5 trillion, and exploration expenditure reached
SAR$1.33 billion between 2019 and 2023. The Future Minerals Forum, held in Riyadh, highlights the country's efforts to drive mineral resilience and responsible supply. Additionally, Saudi Arabia ranks first globally for political stability and fifth for socio-economic agreements according to the Fraser Institute’s 2024 Annual Survey of Mining Companies. The country also ranks seventh for environmental regulation and 23rd on the Investment Attractiveness Index.
Why It's Important?
The rapid expansion of Saudi Arabia's mining sector is crucial for diversifying the country's economy, traditionally reliant on oil. By attracting international investment and increasing local mining activities, Saudi Arabia aims to become a global mining hub. This growth could lead to job creation, technological advancements, and increased foreign direct investment, contributing to the Kingdom's Vision 2030 goals. The sector's development also positions Saudi Arabia as a key player in the global supply chain for critical minerals, essential for various industries, including technology and renewable energy.
What's Next?
Saudi Arabia is likely to continue its efforts to attract more international mining companies and investors. The government may introduce further incentives and regulatory reforms to enhance the sector's attractiveness. The Future Minerals Forum will continue to serve as a platform for collaboration and innovation in the mining industry. As the sector grows, there may be increased focus on sustainable mining practices and environmental regulations to ensure long-term viability and global competitiveness.
