Saudi Arabia has attracted $32 billion in mining investments across key metals such as iron, phosphate, aluminum, and copper, as part of its sweeping efforts to reform and modernize the sector, according to Vice Minister of Industry and Mineral Resources Khalid Al-Mudaifer.
Speaking to Asharq Business, Al-Mudaifer noted that the inflow represents nearly one-third of the $100 billion in total mining investment the Kingdom aims to attract by 2030 under its long-term economic vision.
The mining sector is poised for substantial growth, with its contribution to GDP expected to rise from $17 billion in 2024 to $75 billion by 2030. In 2023, the industry generated $400 million in revenue and now benefits from a robust $100 billion investment roadmap focused on unlocking critical mineral resources by 2035.
“These projects are already under construction,” Al-Mudaifer said, adding that mineral exploration activity has intensified significantly. Since 2018, exploration spending has quadrupled, reaching $100 per square kilometer, with an annual growth rate of 32%, well above the global average of 6–8%.
The number of exploration companies operating in Saudi Arabia has surged from just six in 2019 to 132 today, with 60% of them being small and medium-sized enterprises (SMEs). Foreign investors now make up around 70% of all active mining firms in the country, according to the Saudi Press Agency.
Saudi Arabia is estimated to hold SR9.37 trillion ($2.5 trillion) in untapped mineral reserves. The Kingdom has made it clear that mining will become the third pillar of its economy, alongside oil and petrochemicals.
At the Future Minerals Forum in Riyadh this January, Minister of Industry and Mineral Resources Bandar Alkhorayef announced plans to open 5,000 square kilometers of mineral-rich land for exploration in 2025.
In March, the Kingdom unveiled a new incentive package aimed at boosting foreign direct investment in mining. As part of this initiative, the Ministry of Investment and the Ministry of Industry and Mineral Resources are collaborating on an Exploration Enablement Program, designed to streamline investment procedures and create a more attractive business environment for domestic and international players.
These efforts form part of Saudi Arabia’s broader strategy to transform the mining sector into a global player and a cornerstone of its post-oil economy.
Source: Arab News
