Saudi Arabia Sees Mining Growth As Firms Eye $2.5 Trillion Mineral Wealth

Saudi Arabia Sees Mining Growth As Firms Eye $2.5 Trillion Mineral Wealth

Saudi Arabia is offering incentives and additional licences as mining firms look to exploit an estimated $2.5 trillion of mineral resources.

The Ministry of Industry and Mineral Resources reported a notable increase in the demand for mining licences following the implementation, in January 2021, of the new Mining Investment Law, which aims to promote investment in the sector, spur its development, and increase the Kingdom’s mineral production.

According to the ministry, the number of exploitation licences has risen from eight before the law was passed to 19 in 2023, representing a growth rate of 138 percent.

This surge is attributed to the Kingdom’s plan to make the mining sector a key component of the national industry, thus positioning the country as a reliable global destination for mining activities.

Furthermore, the Kingdom aims to maximise the exploitation of its estimated SR9.4 trillion ($2.5 trillion) worth of mineral wealth.

According to the ministry, the Mining Investment Law has significantly streamlined the process of obtaining mining licences, attracting both local and international investors.

As a result, the number of building material quarry licences increased 241 percent, to 538 in 2023 from 158 before the law was enacted, and of exploration licences rose to 259 in 2023, compared to 58