Saudi Arabia has invested more than $410 billion in the mining sector. According to the National Industrial and Mining Information Center, the total number of operating and under-construction factories in the kingdom has reached 11,672. The combined investment in these factories amounts to SAR1.539 trillion ($410.4 billion).
The country's mining sector is currently undergoing a significant transformation and is gearing up to become one of the key pillars of economic diversification efforts outlined in Vision 2030 strategic program.
As noted in the report of the National Center, the number of factories operating in the country saw a 10% increase in 2023. Moreover, Saudi Arabia issued 1,379 new industrial licenses and 1,058 new factories commenced production last year.
The kingdom's mineral resource reserves are estimated at $2.5 trillion. Recent discoveries, including substantial gold reserves in the Mansoura and Masara mines, highlight the immense potential of Saudi Arabia’s mineral resources. Hence, these mines boast a projected annual production capacity of 250,000 ounces of gold.
The government, for its part, develops and legislatively formalizes initiatives to create a conductive business environment for mining development. The Mining Investment Law was adopted in 2021, streamlining the licensing processes in Saudi Arabia. Thanks to this law, the number of mining licenses issued increased by 138%. In addition, the Saudi Industrial Development Fund provides financial support to promising projects of small and medium enterprises.
The government's comprehensive approach to economic transformation in the mining sector consists of three main stages - exploration, refining and smelting operations to produce basic materials, manufacturing of semi-finished products and finished products. Authorities expect that by 2030, the mining sector's contribution to the country's GDP will reach SAR176 billion ($47 billion).
Hélène Tarin for Rough&Polished
