Saudi Arabia's mining sector is experiencing unprecedented growth, with the estimated value of untapped mineral resources reaching $2.5 trillion, a 90% increase since 2016.
This article explores the recent developments in Saudi Arabia's mining industry, highlighting the opportunities for mining specialists and supporting businesses, and examining the sector's alignment with Vision 2030 objectives.
With over 2,400 mining licenses issued by the end of 2024 and significant foreign investments, including a $97.5 million commitment from international firms, the Kingdom is rapidly becoming a global mining hub.
Understanding these developments can help businesses identify strategic entry points into Saudi Arabia's evolving mining landscape, ensuring alignment with national goals and tapping into emerging markets.
Saudi Arabia's mining sector has experienced an unprecedented surge in licenses and investments, reinforcing its central role in diversifying the national economy under Vision 2030. By the close of 2024, the Kingdom had issued 2,401 mining licenses, a figure that underscores the government's commitment to unlocking the sector's full potential. This marks a 60% increase over the previous five years, driven by proactive policy reforms, digitalisation of licensing processes, and targeted international roadshows promoting Saudi Arabia as a prime mining destination.
These licences span a wide range of activities including exploration, mining, and building mining infrastructure, reflecting the Kingdom's holistic approach to sectoral development. Notably, over 40% of the new licences have been granted to foreign companies, evidencing growing international confidence in Saudi Arabia's mining regulatory framework.
Major global players have entered the market: India's Vedanta Resources secured a significant exploration licence, while China's Zijin Mining Group committed to projects that will see over $97.6 million invested over the next three years. These investments are not isolated events; they are part of a larger $32 billion government strategy aimed at making mining the "third pillar" of the Saudi economy alongside oil and petrochemicals.
Adding to the momentum, the Ministry of Industry and Mineral Resources launched several initiatives, such as the Mining Investment Law (2021) and the Accelerated Exploration Program (AEP), further lowering barriers to entry. Combined with incentives like tax exemptions and royalty reductions for early-stage investments, the sector has never been more attractive for new entrants.
Strategic mineral discoveries are supercharging Saudi Arabia's mining renaissance, laying the groundwork for downstream industries vital to future global economies, including renewables and electric vehicles.
Among the most headline-grabbing developments are the recent discoveries of substantial gold and copper deposits in Wadi al Jaww and Jabl Shayban. Geological surveys estimate that these sites alone could yield millions of tonnes of ore, propelling Saudi Arabia into a more prominent position in global precious metals markets.
However, the discoveries extend well beyond gold and copper. Lithium extraction from oilfield brine, a project pioneered by Saudi Aramco and Ma'aden, represents a potential game-changer. As demand for lithium skyrockets with the global shift towards electric vehicles, Saudi Arabia is strategically positioning itself as a future hub for battery metals. Estimates suggest that if fully developed, Saudi lithium resources could supply a significant portion of global demand by 2035.
Equally exciting are reports of phosphate and rare earth element deposits in the northern regions. These minerals are critical for manufacturing semiconductors, wind turbines, and high-tech defence applications. Their domestic availability strengthens Saudi Arabia’s strategic autonomy and opens opportunities for the Kingdom to build integrated value chains entirely within its borders.
These mineral discoveries are not isolated finds but the result of a systematic national strategy. The Saudi Geological Survey’s intensified mapping efforts, supported by a $1.2 billion exploration initiative, have uncovered previously untapped regions with rich mineral potential.
Collectively, these discoveries are not only expanding Saudi Arabia's resource base but are catalysing industrial diversification, attracting foreign technology partnerships, and creating thousands of new employment opportunities across the mining and supply chain ecosystems.
The mining sector's expansion aligns with Vision 2030's goal to increase the industry's GDP contribution from $17 billion in 2024 to $75 billion by 2030. This growth is expected to create thousands of jobs, with over 44,000 new positions anticipated from industrial licenses issued in 2024 alone.
The mining boom presents vast opportunities for ancillary industries, including logistics, equipment manufacturing, and environmental services. As the sector grows, the demand for supporting infrastructure and services will rise, offering lucrative prospects for businesses ready to engage with the Saudi market.
Establishing a business in Saudi Arabia requires understanding the regulatory landscape. The Kingdom has made strides in facilitating foreign investment, offering incentives like full ownership rights and streamlined licensing processes. However, navigating these procedures necessitates local expertise to ensure compliance and efficiency.
Saudi Arabia's mining sector is not just about resource extraction; it's about building an ecosystem that supports sustainable growth and diversification. For businesses looking to be part of this transformation, the time to act is now.
Ready to explore opportunities in Saudi Arabia's mining industry? Contact Peninsula for a free consultation and discover how we can assist in your business setup and expansion strategies.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
