Saudi Arabia eyes economic diversification with $2.5 trillion mining sector wealth

The mining sector in Saudi Arabia is undergoing a significant transformation, poised to become a key pillar for the nation’s economic diversification efforts outlined in Vision 2030.

The Kingdom’s abundant mineral wealth, estimated at SAR9.4 trillion ($2.5 trillion), presents a crucial opportunity to expand nonoil revenue streams alongside the oil and petrochemical industries.

To accelerate exploration and development, the Kingdom has increased its estimated mineral wealth and invested SAR682.5 million ($182 million) in exploration incentives by the end of 2023. This commitment was reinforced by the issuance of 152 new industrial licenses by the Ministry of Industry and Mineral Resources in January 2024 alone. The licenses include 20 for non-metallic mineral products and 19 for activities related to manufacturing formed metal products, excluding machinery and equipment.

According to a report by the National Industrial and Mining Information Center, the 152 industrial licenses issued since the beginning of 2023 contributed to bringing the total number of operating and under-construction factories in the Kingdom by the end of January 2024 to 11,672. These factories represent a combined investment of SAR1,539 trillion.

Recent discoveries, including significant gold reserves along a 100 km stretch in the Mansoura and Masara mines, further emphasize the vast untapped potential of Saudi Arabia’s mineral wealth. These mines boast a projected annual production capacity of 250,000 ounces of gold.

The ongoing transformations in the mining sector reflect progress toward achieving the comprehensive strategy of the sector outlined in Vision 2030, which aims to unlock the full potential of the sector, driving economic and social growth, in line with the Kingdom’s ambitious goals for 2030.

Vice Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer elaborated on the government’s initiatives to propel the mining sector forward. These include implementing programs to create a business-friendly environment for mining development, enacting the Mining Investment Law to streamline the licensing process, minimising the environmental impact of mining operations, maximising benefits for local communities, and launching a comprehensive geological survey program to gather important data.