Saudi Arabia’s Expanding Mining Industry

Saudi Arabia continues to expand its mining sector with the opening of a new metals and mining facility in Jeddah by Bureau Veritas, a leading global testing and certification company. This marks a significant step in tapping into the kingdom’s estimated $2.5 trillion worth of mineral resources.

Government Support and Incentives

To support this initiative, the Saudi ministries of industry and investment have introduced a mineral exploration incentives package worth $182 million. This package aims to attract investors and increase exploration activities in the region.

Rise in Exploration Permits and Licenses

The number of exploration permits has surged to 259 in 2023, a significant increase from 58 in 2021. Additionally, licenses for building material quarries have tripled to 538, further reflecting the growing demand for mining resources in the kingdom.

Jeddah as a Metals Trading Hub

The recent designation of Jeddah Islamic Port as a storage location for copper and zinc by the London Metal Exchange positions Saudi Arabia as a key player in the global metals market. Jeddah is now the second location in the Middle East, after Dubai, to be part of this strategic trading network.

Saudi Arabia’s Vision for the Mining Sector

Saudi Arabia is on track to establish itself as the Middle East’s logistics hub and a leading player in the global mining industry. This effort is spearheaded by Maaden, the kingdom’s largest mining company, which plays a crucial role in advancing the sector.

Valuation of Saudi Arabia’s Mining Industry

With an annual value of $36.3 billion, Saudi Arabia boasts the seventh-largest mining industry in the world. The country is keen to capitalize on this wealth by promoting new projects and partnerships in the sector.

Related Articles

E-Payment Mandate: Navigating Guidelines For Saudi Public Benefit Markets