By : Marwa Mahmoud
On Tuesday, the Saudi Cabinet approved a new mining investment law aimed at revolutionizing the mining and metals industry in the Kingdom and increasing local and foreign investment in the sector.
Minister of Industry and Mineral Resources Bandar Alkhorayef defined the law as a strategic initiative that will increase the participation of the mining sector to gross national income by more than SR240 billion ($64 billion), reduce imports by SR37 billion and create 200,000 direct and indirect jobs by 2030.
The proposed law would promote the creation of a mining fund to provide sustainable funding for the industry, as well as financing the geological surveys and exploration programmers.
Growth of the mining and metals industry depends on good transparency and management as these factors improve investor trust. Alkhorayef said
Alkhorayef said that areas near mining projects would also potentially gain the benefits of the new legislation.
The law, composed of 63 articles, will help to optimize mineral resources in the Kingdom, which, according to experts, are valued at SR5 trillion.
“the new law would help other major sectors and build work opportunities for Saudi youth”, NIDLP CEO Sulaiman Al-Mazroua said .
He added that “The approval is expected to promote the growth of the sector and to improve its crucial position in boosting the competitiveness of the industry, creating quality employment, attracting lucrative investment and enabling more downstream industries,”.
Al-Mazroua announced that the new law is detailed and covers all aspects of the mining and metals industry.
It should help to convert the sector into the third major pillar of the national economy, he added.