RIYADH: Saudi Arabia has attracted $32 billion in investments for mining projects across iron, phosphate, aluminium, and copper, driven by ongoing sector reforms aimed at transforming the Kingdom into a global mining hub, the Vice Minister of Industry and Mineral Resources said.
This comes as the country’s mining sector is expected to increase its contribution to gross domestic product from $17 billion in 2024 to $75 billion by 2030.
The industry generated $400 million in revenue in 2023 and is now backed by a $100 billion investment roadmap aimed at critical minerals by 2035, Arab News reported.
“Saudi Arabia has attracted approximately $32 billion in investments in mining projects in iron, phosphate, aluminium, and copper, which are already under construction. This represents nearly a third of the $100 billion targeted for investment by 2030,” Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources, said as quoted by Arab News on Wednesday.
The vice minister added that mineral exploration spending in Saudi Arabia has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent, Arab News reported.
According to the Saudi Press Agency, the number of exploration companies operating in Saudi Arabia has risen sharply from just six in 2019 to 132 today, with around 60 percent classified as small and medium-sized enterprises.
Foreign firms now account for approximately 70 percent of all companies active in the Kingdom’s mining sector, said Al-Mudaifer.
Saudi Arabia is estimated to possess mineral reserves worth SR9.37 trillion ($2.5 trillion) and aims to position mining as the third pillar of its economy, alongside oil and petrochemicals.
In January, during the Future Minerals Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef announced new exploration opportunities covering 5,000 sq. km of mineral-rich belts set for 2025, as part of the Kingdom’s ongoing efforts to grow its mining sector.
In March, Saudi Arabia introduced a new incentive package aimed at attracting increased foreign direct investment into the industry.
As part of this initiative, the Ministry of Investment is collaborating with the Ministry of Industry and Mineral Resources through an exploration enablement program designed to simplify investment procedures in the sector, according to the Saudi Press Agency.
The project is part of broader efforts to boost mineral exploration and create an attractive environment for both local and international mining companies.
