Dr. Mohammed Makni, an economic analyst, told “Al Arabiya.net” that Saudi Arabia’s recent approval of the National Mining Program in a cabinet session demonstrates its commitment to developing the sector.
This includes launching specialized mining programs and initiatives, leveraging the country’s valuable mineral resources to strengthen its position as a regional and global hub.
Government Commitment, Strategic Vision
In his speech, Makni says, “Saudi Vision 2030 embodies a strategy to utilize the country’s abundant natural resources optimally, aiming to transition from a traditional economy to a modern one.”
He also indicated that the mining sector is capable of generating a significant number of important and high-quality investments that will positively impact the national economy.
Moreover, the value of mineral wealth in Saudi Arabia has multiplied to more than 9.3 trillion Saudi Riyals, due to the development of infrastructure and legislation, continuous exploration operations, local demand, its strategic location, and the advancement of mining industries. Moreover, the Kingdom’s mineral wealth includes gold, phosphates, copper, zinc, and rare earth elements.
The mining investment system regulates the sector, ensures governance, and incentivizes investors, enhancing transparency and sustainability. It also includes launching a mining platform for licenses and developing a national geological database with 80 years of data.
Investment Opportunities, Economic Impact
The Ministry of Industry and Mineral Resources, with the Ministry of Investment, announced incentives for companies and investors in mineral resource exploration in the Kingdom. They aim to support companies with valid exploration licenses under 5 years. This will also provide up to 7.5 million Saudi Riyals per license. Furthermore, the Saudi Industrial Development Fund also offers up to 75% coverage of eligible project costs for exploration and mining.
The Minister of Industry and Mineral Resources of Saudi Arabia, Bandar Alkhorayef, revealed that Saudi Arabia has raised the target for the mining sector’s contribution to its GDP to between 70 and 80 billion dollars by 2030. Additionally, previous estimates had indicated that the mining sector’s contribution to Saudi Arabia’s GDP would reach 64 billion dollars by 2030.
Economic Transformation
In conclusion, the Kingdom has shown rapid progress in global mining investment risk assessments by MineHutte and Mining Journal. It achieved the fastest growth in regulatory and infrastructure development globally from 2018 to 2023. Starting with a sector transformation program focused on legislative, the Kingdom has become a top choice for mining investment.
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