RIYADH: Saudi Arabia is rapidly advancing its mining sector as part of its ambitious Vision 2030 economic transformation plan, which underscores the importance of critical minerals and rare earths. The Kingdom’s mineral wealth is estimated at $2.5 trillion, positioning mining as a crucial third pillar of its economy alongside hydrocarbons.
The mining industry is expected to enhance Saudi Arabia’s position in transition minerals and supply chains by increasing extraction, processing, and logistics capabilities to deliver materials to market. This potential has been emphasized by economists and industry specialists, particularly given that the country is home to over 45 identified minerals, including gold, copper, and uranium.
Recent government measures aimed at streamlining investment have catalyzed growth in the sector. Updated regulations, digital licensing platforms, specialized mining services, and new transport links to mining regions are making the industry more accessible. Vision 2030 seeks to elevate mining’s contribution to gross domestic product (GDP) to SR240 billion ($63 billion) by 2030, create 200,000 direct and indirect jobs, and attract $27 billion in new investments.
Signs of progress are evident with an uptick in exploration activities, licensing, and new mineral discoveries. “The mining strategy shows it’s working very well, evidenced by the rapid rise in exploration and industrial licenses, and major new mineral discoveries,” noted Talat Hafiz, an economist and financial analyst.
Saudi Arabia is undertaking the world’s largest geological survey, covering approximately 700,000 square kilometers of the Arabian Shield for a budget of $1.5 billion. Official data indicates that mining licenses issued have surpassed 2,000, with the Kingdom’s mineral wealth having increased by 90% since Vision 2030 was launched in 2016.
A significant milestone was the introduction of a new mining investment law, which reduced the tax rate from 45% to 20%, aimed at attracting investment and aligning the sector with global standards. This strategic move positions Saudi Arabia as a critical supplier of raw materials essential for energy transition, as clean-energy technologies demand considerable volumes of mined materials.
Copper is vital for electrification and power networks, while battery supply chains rely on minerals such as nickel and lithium. The Kingdom’s Jabal Sayid site, located northeast of Jeddah, ranks among the top four resources for rare earth elements. Khalid Al-Mudaifer, vice minister of industry and mineral resources for mining affairs, emphasized that this site will support both domestic needs for minerals used in electric vehicles and global supply, including the U.S. market.
Investment in mining can stimulate the Kingdom’s economy by broadening supply-chain employment and boosting non-oil exports. Mines, processing plants, and supporting infrastructure require substantial upfront capital, creating a wide range of job opportunities across construction, equipment, utilities, and logistics sectors.
“When a mining sector scales, the economic footprint extends well beyond extraction,” stated Turki Al-Nahari, vice president of global mining at Ecolab. He added that growth typically spans engineering services, industrial water management, logistics, laboratory testing, equipment reliability, environmental services, and digital performance systems, thereby generating demand for skilled engineers, technicians, and data analysts.
In 2025, Saudi Arabia’s mining exploration budget saw a dramatic increase of 600%, rising to $146 million from $21 million in 2022. Analysts attribute this growth to ongoing geological surveys, technological advancements, and enhanced budgets for resource exploitation, which signal stability and opportunities for foreign investment.
Investors seek clear feasibility assessments, competitive costs, and stable regulations when financing mining projects. Abdullah Al-Harbi, an economist familiar with the sector, remarked that solid feasibility work and credible project timelines are essential for profitability, particularly in the face of fluctuating commodity prices. Currently, Saudi Arabia’s pipeline comprises 24 exploration-stage projects and 17 more advanced developments.
The Kingdom’s proactive approach to geological surveys and resource assessment is revealing significant potential across gold, copper, phosphate, and bauxite. Large-scale projects are likely to foster employment across a broader industrial supply chain, benefiting contractors, maintenance services, laboratories, and transport sectors.
To support employment and enhance workforce skills, Saudi Arabia has initiated a framework to standardize job roles within the mining industry. Launched in January at the Global Labor Market Conference, this framework details over 500 job roles, specifying the necessary skills and responsibilities.
Exports from the mining sector are already rising, supported by investments aimed at developing the industry and creating jobs. In 2024, Saudi Arabia exported 5.7 million tonnes of phosphate fertilizer, reflecting a 6% increase from 2023. As the energy transition accelerates, the Kingdom’s strengths may lie beyond mere extraction.
“Saudi Arabia’s most realistic advantage in the accelerating energy transition lies in combining selective mining with strong processing and refining capabilities,” Hafiz said. He noted that the Kingdom’s geographic position between Africa, Europe, and Asia enhances its attractiveness as a logistics and supply-chain hub.
Prioritizing minerals aligned with emerging industries such as electric vehicles and clean energy, Saudi Arabia aims to support local manufacturing and infrastructure development while strengthening export capacity. As the global race toward electrification and decarbonization intensifies, the Kingdom is effectively positioning itself beyond its oil legacy through its strategic commitment to the minerals sector, which will be pivotal in powering the future.
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