Saudi Arabia attracts $32bn in mining investments amid sector reforms
Khalid Al-Mudaifer, vice minister of industry and mineral resources, told financial news outlet Asharq Business that the figure represents nearly one-third of the $100 billion the Kingdom aims to attract in the sector by 2030.
This comes as the country's mining sector is projected to increase its contribution to gross domestic product from $17 billion in 2024 to $75 billion by 2030. The industry generated $400 million in revenue in 2023 and is now supported by a $100 billion investment roadmap targeting critical minerals by 2035.
'Saudi Arabia has attracted approximately $32 billion in investments in mining projects in iron, phosphate, aluminum, and copper, which are already under construction. This represents nearly a third of the $100 billion targeted for investment by 2030,' Al-Mudaifer said.
The vice minister added that mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent.
He said the number of exploration firms in Saudi Arabia has grown from just six in 2019 to 138 today, with 60 percent of them being small and medium-sized enterprises.
Foreign companies currently represent approximately 70 percent of all firms operating in the Kingdom's mining sector, Al-Mudaifer said.
Saudi Arabia is estimated to hold SR9.37 trillion ($2.5 trillion) in mineral reserves, and the Kingdom aims to establish mining as the third pillar of its economy, after oil and petrochemicals.
In January, at the Future Minerals Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef announced upcoming exploration opportunities across 5,000 sq. km of mineralized belts in 2025, as the Kingdom continues its push to expand the sector.
In March, Saudi Arabia launched a new incentive package to attract foreign direct investment into its mining industry.
As part of this initiative, the Ministry of Investment is collaborating with the Ministry of Industry and Mineral Resources through an exploration enablement program designed to simplify investment procedures in the sector, according to the Saudi Press Agency.
The program is part of broader efforts to enhance mineral exploration and foster an attractive environment for both local and international mining companies.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ArabGT
3 hours ago
- ArabGT
Saudi Arabia's Electric Vehicle Market: What's Next?
What was once seen as a foreign trend has now become a tangible reality in Saudi Arabia—electric vehicles (EVs) are no longer on the sidelines. Over the past few years, government-backed initiatives and strategic investments have laid the groundwork for a more sustainable and fuel-independent transportation system. Market indicators show a notable surge in EV adoption, fueled by concrete infrastructure plans and a growing range of vehicle choices tailored to local needs. Among the more ambitious milestones is Riyadh's target: converting 30% of its vehicle fleet to electric by 2030. While this target comes with its fair share of hurdles, execution is already underway. With market projections estimating a value of $1.86 billion by 2030, the Kingdom is positioning itself to make electric mobility a mainstream mode of transport in the years ahead. What's Powering the Momentum? Much of the sector's growth can be traced to the top: Vision 2030. This national strategy isn't just about setting environmental benchmarks—it's backing them up with serious capital. Approximately $39 billion has been committed to developing the electric mobility ecosystem, with $18 billion earmarked for domestic manufacturing. Notable projects include Lucid Motors' facility in King Abdullah Economic City and Hyundai's joint venture with the Public Investment Fund—both pivotal in establishing a local EV production base. Infrastructure development is also in full swing. The government aims to roll out more than 5,000 fast-charging stations across the country by 2030. While urban centers like Riyadh and Jeddah are nearing saturation, the focus is shifting toward secondary cities to widen accessibility. Battery innovation is accelerating this transition. Facilities such as EV Metals Arabia in Jubail and the Hithium plant are not only cutting costs but also boosting self-reliance. In parallel, regulatory mandates are pushing logistics and delivery companies toward electrified fleets, further driving market uptake. Roadblocks to Overcome Despite the momentum, challenges remain. One key issue is the lack of sufficient charging infrastructure outside major metropolitan areas, making EV ownership less practical in remote regions. Saudi Arabia's extreme heat is another concern. Summer temperatures regularly exceed 50°C, impacting battery performance and longevity. Although manufacturers are introducing advanced thermal management systems, these often increase vehicle costs. Additionally, subsidized fuel prices diminish the cost advantage of EVs for individual buyers. A shortage of skilled EV technicians further complicates maintenance and support, particularly in less urbanized areas. Who's Leading the Charge? Private vehicles dominate the market with a 77.5% share, but commercial EVs are catching up fast, driven by lower operating costs and regulatory support for fleet electrification. High-performance and luxury SUVs in the 100–200 kW category are especially popular among wealthier consumers. Battery electric vehicles (BEVs) hold a 53% market share, owing to better infrastructure support and incentives. Fuel cell electric vehicles (FCEVs), however, are gaining momentum, projected to grow by 37.8%—thanks in part to large-scale hydrogen projects like NEOM's initiative. When it comes to driving range, vehicles offering between 200–400 km are currently the most preferred. Yet, demand for models exceeding 400 km is growing rapidly, reflecting the needs of users who travel longer distances across the Kingdom's expansive terrain. Regionally, Riyadh is the frontrunner with 35.9% of all EV sales, bolstered by policy support and infrastructure density. The Eastern Province is emerging as a manufacturing and export hub, while Mecca is uniquely suited for pilot projects in clean urban transport, especially during high-demand seasons like Hajj and Umrah. An Intensifying Competitive Field Saudi Arabia's EV market is heating up. Nissan's early market entry gave it a strong foothold, while Tesla is preparing to enter aggressively with its own charging network. Lucid benefits from both government support and local manufacturing, providing a logistical and financial edge. Meanwhile, Hyundai and SIR Motors are expanding their presence, with SIR producing locally using BMW-licensed technology. Recent developments include Hyundai breaking ground on a major production facility, Aramco forging tech partnerships with global players like BYD, and Tesla officially announcing its upcoming launch in the Kingdom. The message is clear: Saudi Arabia is not just following the global EV wave—it's preparing to lead it in the region.
Argaam
7 hours ago
- Argaam
ADES performance seen to accelerate in H2 2025: CEO
Mohamed Farouk, CEO of ADES Holding Co., said the group expects its performance to accelerate in the coming months as all contracted rigs become fully operational by the end of Q4 2025. Speaking to Argaam, Farouk reaffirmed the company's guidance for 2025, targeting EBITDA between SAR 3.28 billion and SAR 3.39 billion, which reflects an annual growth rate of 8% to 12%. This growth is supported by expansion in both existing and new markets, improved utilization of recently commissioned rigs, and strengthened regional presence. He highlighted that the company benefits from its flexible operating model, diversified geographical footprint, and financial agility — all of which support its ability to sustain growth in the coming period. Commenting on the financial results, Farouk explained that despite revenue growth, the drop in profits was mainly due to higher depreciation and interest expenses relative to revenue, driven by the expanded rig fleet and the commissioning of several rigs during the period. He noted that the results were in line with market expectations for Q2. The top executive added that during H1 2025, the company fully commissioned six rigs, while another six underwent preparations at various times, including two newly built rigs. These rigs fall under the six-rig contract awarded to the company in 2024. Of these, five were gradually brought online during Q2, while the sixth — which had already started operations earlier in Q2 — is currently undergoing final preparations and is expected to restart in Q3 2025. Operations in Kuwait are expected to reach full capacity by the end of Q3 2025, with 12 rigs in operation. On a geographical basis, Farouk said the company posted revenue of approximately SAR 3.05 billion in H1 2025, largely unchanged from the same period last year. Saudi Arabia led with SAR 1.82 billion in revenue, followed by Egypt with SAR 294 million, and Southeast Asia with SAR 279 million. Revenue by Geographic Region (SAR mln) Region H1 2025 H1 2024 Change Saudi Arabia 1,817.0 2,170.0 -16.3% Egypt 294.1 224.7 +30.9% Southeast Asia 279.2 6.8 +4032% Kuwait 257.8 319.0 -19.2% Qatar 174.7 152.1 +14.9% India 119.6 98.8 +21.0% Algeria & Tunisia 99.9 86.0 +16.2% Nigeria 6.6 - - Total 3,048.9 3,057.4 -0.3% Farouk pointed out that the total number of active rigs reached 73 by the end of H1 2025, compared to 77 during the same period last year. The company continued implementing its rig reactivation plans across multiple markets, including Saudi Arabia, Nigeria, Qatar, Thailand, and Egypt, while also preparing to expand operations in Thailand, Brazil, Nigeria, and Cameroon. The global oil sector continues to experience long-term balance between supply and demand, which supports demand for ADES's high-efficiency fleet amid growing tender activity across strategic regions in Southeast Asia, the Middle East, and West Africa. 'With the continued ramp-up of rig operations, we expect stronger performance in H2, in line with our reaffirmed 2025 financial guidance," the CEO said. He added that the company's financial flexibility enables it to continue capturing promising growth opportunities, enhance shareholders' equity, and advance its global expansion strategy. 'I am confident that the group's operations are ideally positioned to maintain this upward trajectory moving forward,' Farouk added.
Arab News
8 hours ago
- Arab News
SDB partners with Italian institute to train Asir craftsmen
The Social Development Bank hosted an event to train and empower local craftsmen and jewelry designers in the Asir region, in association with the Italian Institute of Contemporary Art, one of the world's leading institutes specializing in contemporary craft design and artistic jewelry making. The event, 'Asir: Craftsmanship Celebration,' offered specialized training in creating handicrafts using copper and gold leaf, reflecting the artists' national identity while aligning with contemporary artistic trends. It drew inspiration from local cultural heritage, particularly Asir's Al-Qatt art form, to reimagine traditional techniques in a modern context, capturing the spirit and cultural uniqueness of the region. This agreement is part of the bank's efforts to expand its international partnerships and transfer global expertise to the local market by offering specialized training programs. This initiative enhanced participants' technical and production skills in metal forming and professional techniques, ensuring they can produce high-quality pieces that meet market demands. Additionally, the aim is to transform these skills into sustainable economic opportunities by enabling participants to design and implement marketable models for the hospitality, hotel, and luxury gift sectors. The event witnessed the signing of a strategic cooperation agreement between the SDB and the IICA. This agreement is part of the bank's efforts to expand its international partnerships and transfer global expertise to the local market by offering specialized training programs in several regions of the Kingdom, supporting the empowerment of productive groups, and enhancing their competitiveness. The event also hosted a session titled 'Asir's Most Splendid Diwaniya,' which featured a group of entrepreneurs, investors, and local experts. It addressed strategic themes related to the integration of the crafts and tourism sectors, the role of freelance work in enhancing project readiness and reducing costs for seasonal establishments, and ways to invest in local resources and develop culturally relevant products. Participants spotlighted the significance of raising the economic value of national crafts and linking them to tourism and hospitality. The 'Asir: Craftsmanship Celebration' event reflects the SDB's commitment to empowering craft and creative project owners by transforming skills into economic opportunities. Since launching its specialized training program in 2023, the bank has trained more than 300 beneficiaries, created 250 quality products, and qualified 30 percent of participants for financing, enabling more than 150 productive families to expand their businesses. Over the last two years, the initiative has conducted more than 15 training programs, with 40 percent of participants receiving funding, resulting in a 40 percent increase in sales for existing projects. The program also organized seven dialogue forums to foster collaboration with supporting entities. The event serves as a key interactive track within this training program, linking productive families and self-employed individuals with investors, and enhancing the integration of crafts and tourism in the Asir region. It highlights the crucial role of handicrafts in the tourism experience and the importance of self-employment in the local hospitality sector.
