Introduction

Saudi Arabia, traditionally known for its vast oil reserves, is positioning itself as a key player in the global mining sector. With the world’s economies in a race to secure critical mineral resources, the Kingdom is accelerating its efforts to explore and mine key minerals within its borders and extend its reach globally. This strategic shift could transform Saudi Arabia into a central mineral supply chain figure, essential for the green transition and technological advancements worldwide.

Strategic Investments and Global Aspirations

In a significant move, Saudi Arabia’s Public Investment Fund and the state mining company Ma’aden have launched Manara Minerals, a venture to acquire global mining assets. This initiative is part of a broader strategy to capitalise on the Kingdom’s mineral wealth and become an international hub for green minerals processing. Such ambitions place Saudi Arabia on the map as a significant player in the mining industry, with potential impacts far beyond its borders.

Vision 2030: A New Era for Mining in Saudi Arabia

At the heart of Saudi Arabia’s mining expansion is the Vision 2030 reform agenda, which aims to diversify the nation’s economy and reduce its oil dependence. The agenda elevates the mining sector as a critical economic pillar, aligning with the National Industrial Development and Logistics Program. This focus is driven by the understanding that minerals are crucial for industries essential to achieving Vision 2030’s objectives, including the green transition, digitisation of the economy, and enhancement of technological connectivity.

Officials in the Kingdom are setting ambitious targets, aiming to boost the mining sector’s contribution to the GDP from $17 billion to $75 billion by 2030. This growth is expected to generate thousands of high-value jobs, significantly reduce mineral imports, and enhance the competitiveness of Saudi industries that rely on these minerals.

Mining Investment Law in Saudi Arabia

The Saudi Mining Investment Law, introduced as a cornerstone of the Kingdom’s efforts to attract international investment and diversify its economy away from oil, represents a significant reform of the mining regulatory framework. This law is designed to streamline the licensing process, offering greater transparency and efficiency to investors looking to tap into Saudi Arabia’s vast mineral resources. It provides a more attractive and competitive investment environment by offering incentives such as reduced royalty rates for certain minerals, extended license durations, and assurances on the security of tenure. The law also emphasises environmental sustainability and social responsibility in mining operations, aligning with global best practices and Saudi Arabia’s Vision 2030 goals. By creating a more investor-friendly landscape, the Saudi Mining Investment Law aims to unlock the Kingdom’s mineral wealth potential, positioning Saudi Arabia as a leading player in the global mining industry and paving the way for significant economic contributions from this sector.

Saudi Arabia’s Rich Mineral Reserves

Saudi Arabia’s mineral wealth is tremendous, with over 48 minerals identified, including significant reserves of marble, granite, gold, copper, iron, aluminum, and steel. The Kingdom boasts gold reserves exceeding 100 million ounces and an estimated total mineral wealth of $2.5 trillion. With plans to attract nearly $200 billion in mining sector investments by 2030, Saudi Arabia is positioning itself as an increasingly important global metals hub. Jeddah, in particular, with its high metal consumption, efficient transport network, and operational standards, is becoming a focal point for new mining warehouses and operations.

Incentives for Investors in the Mining Sector

In collaboration with the Ministry of Investment, the Saudi Ministry of Industry and Mineral Resources has introduced an incentive package worth approximately $182 million to attract investment in mining exploration. This package aims to reduce risks for exploration companies in their initial stages and foster investment in the sector. The government’s commitment to supporting companies prioritising local talent and expertise underscores its dedication to sustainable development within the mining industry. Investors can benefit from comprehensive financial support for mineral resource exploration, with each exploration license eligible for up to SR7.5 million in support. Furthermore, companies may qualify for support for up to 15 licenses, subject to program terms and conditions.

Obtain Your Mining License in Saudi Arabia

Saudi Arabia embarks on an ambitious journey to become a mining powerhouse. Its strategic investments, rich mineral reserves, and investor-friendly policies signal a new era of economic diversification and international influence. The Kingdom’s mining sector is set to play a crucial role in the global supply chain of critical minerals, underpinning technological and green transitions worldwide. Saudi Arabia is rapidly becoming a land of opportunity for investors and companies in the mining industry, promising growth, innovation, and sustainable development.

Securing a mining license in Saudi Arabia is critical for investors looking to tap into the Kingdom’s vast mineral resources. Al Taasis is here to guide you through the licensing process, ensuring you can capitalise on the opportunities presented by Saudi Arabia’s flourishing mining sector.

Contact us to know more about the prerequisites of your business journey.