Vision 2030 of Saudi Arabia has launched a comprehensive plan to diversify its economy away from fossil fuels and support by focusing on the mining sector in Saudi Arabia (apart from other industries such as tourism and technology), targeting to increase the GDP mining contribution from $17 billion in 2019 to $ 75 billion in 2035.
Saudi Arabia, an oil-rich country, is making a quantum jump in the global mining sector, taking steps to attract foreign investment and diversifying its economy. The Kingdom is accelerating its efforts to explore and mine key minerals in the country to emerge as a key player in the global mining sector.
The Kingdom wants to leverage an estimated $1.3tn worth of vastly underexplored metals and minerals to support its sustainable development goals and the clean energy transition. The mining industry involves discovering and extracting naturally occurring minerals from the earth.
Saudi Arabia Mining Sector key aspects
Saudi Arabia’s Vision 2030 views the mining sector as an essential pillar to support its economic transformation in line with the National Industrial Development and Logistics Program. Significant steps mentioned below have been taken in the mining sector to encourage foreign investment.
Legislation: In 2021, Saudi Arabia passed new legislation to make it easier for foreign investors to access Saudi Arabia mining licenses. In February 2025, a legislative amendment will simplify the process, giving foreign investors equal treatment with Saudi companies.
Exploration funding: In January 2024, the Ministry of Industry and Mineral Resources launched a $182 million exploration funding program to reduce financial risks for companies.
Licensing & Permitting: Saudi Arabia has streamlined and modernized its licensing and permitting processes. Investors can apply for licenses directly through the Ministry on a first-come, first-serve basis.
Economic Diversification: Saudi Arabia aims to make mining a key economic development and diversification driver. The country prioritizes mining to exploit its vast domestic mineral reserves, including transition minerals like lithium, cobalt and nickel.
Strategic Position: Saudi Arabia’s geographic location in the Middle East, West Asia and Africa regions gives it a strategic position. The country has access to essential markets in Europe, Asia and Africa.
Jeddah: This city is becoming a central point for new mining operations and warehouses due to its efficient transport network, high metal consumption, and operational standards.
Resources: Saudi Arabia has a large reserve of natural mineral resources. They include, in addition to natural gas and Petroleum, Gold, Silver, Copper, Iron ore, Aluminium, Lead, Gypsum, Basalt, Salt, magnesium, Uranium, and Sulphur. The country has an estimated 5300 mining sites.
Production: In 2021, Saudi Arabia earned about SAR4.9 billion from mining. In 2025, the mining sector is projected to produce 611 900 metric tonnes with an annual growth rate of 1.03 %.
Mining activities: Mining activities can be done by companies on state-owned, privately owned, partially state-owned, and partially privately owned lands and maritime areas.
GDP Contribution: Saudi Arabia’s goal is to increase the mining industry’s contribution to the GDP to SAR 240 Billion.
Government Initiatives for the mining industry in Saudi Arabia
The Saudi government has launched several initiatives to support the mining sector. These include the following:
Accelerated exploration: This initiative aims to attract investment, speed up exploration and develop the country’s resource base.
Mining Investment Law: This law aims to reduce the random exploitation of mineral deposits, protect the environment and ensure fair investment conditions. The law is designed to streamline the mining licensing process, offering greater transparency and efficiency to investors planning to take advantage of the vast mineral resources of Saudi Arabia. The law also emphasizes environmental sustainability and social responsibility in mining operations. By creating an investor-friendly business atmosphere, the investment law aims to unlock business opportunities by tapping into the Kingdom’s mineral wealth.
Mining and Exploration Enablement Program: This program encourages mineral exploration companies to invest in Saudi Arabia and identify new areas with high mineral potential.
- Saudi Arabia has announced five new mining exploration opportunities to diversify its economy away from hydrocarbons.
Incentives for Investors in the Mining Sector
- The Saudi Ministry of Industry and Mineral Resources has introduced an incentive package worth approximately $ 182 million to attract investment in mining exploration.
- The government is committed to supporting the company’s prioritizing local talent and expertise, underscoring its dedication to sustainable development in the mining industry.
- Investors can benefit from financial support for mineral resource exploration, with each exploration license eligible for up to SAR 7.5 million in support.
In summary, Saudi Arabia invests heavily in mining, creating many business opportunities for foreigners and locals.
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