The Kingdom has made significant progress in the global assessment of investment risks in mining sector published by MineHutte in collaboration with Mining Journal, achieving the fastest global growth in the development of a regulatory and infrastructure environment attractive to investment over the past five years (2018–2023), since the launch of the sector’s transformation program, beginning with the development of the sector’s legislative framework and regulatory framework, until the Kingdom became a “preferred destination” for investment in the mining sector.
The rankings included in the assessment an improvement in the Kingdom’s ranking on the Mining Licensing Index, where it ranked as the second-best country in the world for its licensing environment, in addition to significant progress in the Kingdom’s ranking on the Fiscal Policy Index, placing it among the top 10 countries globally on this index.
The Kingdom has made significant progress in the Legislative and Regulatory Framework Index, placing it among the world’s top mining nations in terms of legislative and regulatory frameworks, making the Kingdom a role model for improving the investment environment and developing the mining sector in neighboring countries.
The Global Mining Investment Risk Assessment highlighted the Kingdom’s efforts to develop the mining sector, starting with the launch of the Comprehensive Strategy for Mining andthe metals industry in 2018 to maximize the value derived from natural resources, supported by the development of the mining investment system, which forms the legislative and regulatory framework for the sector and provides a clear, transparent, and conducive environment for investors in the mining sector, in addition to comprehensive reforms and incentives for investors in the sector.
His Excellency the Deputy Minister of Industry and Mineral Resources for Mining Affairs, Engineer Khalid bin Saleh Al-Mudayfer, affirmed that this top global ranking is the result of efforts made to develop the mining sector over the past five years, Since the launch of Saudi Vision 2030 under the leadership of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister—may God protect him—the Kingdom has taken serious steps to diversify its economic sources beyond oil and gas, and on this basis, has established programs and initiatives as part of the transformation plan to develop the mining sector, making it the third pillar of the national industry.
His Excellency noted that, in light of this transformation, the new Mining Investment Law and its implementing regulations were issued, the geological survey project for the Arabian Shield—the largest of its kind globally—was launched, and the Accelerated Exploration Initiative was introduced, and dozens of other initiatives aimed at developing and transforming the sector. He added that these results are encouraging investors to capitalize on opportunities in the Kingdom, which has become a global leader in the mining and minerals industry.
For her part, Emma Beatty, Chief Operating Officer and Director of Research at MineHutte, praised the significant and positive transformation the Kingdom has undergone in the report, stating: “The transformation in the Kingdom’s mining sector has been the most notable at both the regional and international levels over the past five years, and the reforms the sector has undergone at the regulatory, legislative, and infrastructure levels are the main reason behind its significant advancement in the report’s international ranking and its leading position in the report’s risk classification. and that it is both impressive and encouraging that these major transformations are contributing to attracting foreign investment and realizing the economic vision the Kingdom has set for its mining sector.”
The Risk Analysis Report, published by MineHutte in collaboration with Mining Journal, is a trusted resource for mining companies and investors worldwide to identify investment destinations based on five criteria: (regulatory framework, governance, infrastructure, investment incentives, and social standards).
The Kingdom seeks to attract foreign investment to its mining sector, capitalizing on the growth of its mineral wealth, the value of which has recently doubled to more than 9.3 trillion riyals, as a result of infrastructure and legislative developments, ongoing exploration, domestic demand, and its strategic location, as well as efforts to advance the mining industries. The Kingdom’s mineral resources include gold, phosphate, copper, zinc, and rare earth elements.
The mining investment system forms the regulatory framework for the sector, ensuring its governance and providing incentives to investors, thereby contributing to enhanced transparency and sustainability principles, and increasing investor confidence in the sector, in addition to driving the sector’s digital transformation through the launch of the "Taden" platform for granting mining licenses and the development of the National Geological Database, which contains 80 years" worth of geological data and exploration information specific to the Kingdom, particularly the Arabian Shield region.
It was also announced that Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, announced a package of incentives that includes financial facilities for companies and investors wishing to invest in mineral resource exploration activities in the Kingdom; with the aim of supporting companies holding valid exploration licenses for less than five years, with a maximum value of 7.5 million riyals per license. Additionally, the Saudi Industrial Development Fund provides up to 75% toward the costs of eligible exploration and mining projects.
It is worth noting that the Ministry of Industry and Mineral Resources organizes the International Mining Conference, which in its previous three editions saw the participation of more than 75 countries in the international ministerial meeting, and 14,000 participants and visitors, including leading international speakers, to discuss the future of the mining and minerals industry, attracting investments to the major mining region stretching from Africa to West and Central Asia, and translating the outcomes of the dialogue into practical, on-the-ground actions, in addition to contributing to solving a range of challenges facing the mining and minerals sector, especially in light of the growing demand for strategic minerals needed to achieve the transition to clean energy and meet carbon neutrality targets.
