Since the launch of Vision 2030 in 2016, Saudi Arabia has seen significant development, transforming the business environment and creating new sectors. The government has launched mega projects such as NEOM and Red Sea in line with its commitment to diversify the Kingdom’s economy away from its dependence on the oil sector. Saudi Arabia’s non-oil sector accounted for more than 50% of GDP for the first time in 2023, growing from 47.4% in 2015 to 51.7% that year.
Saudi Arabia’s mining sector is expected to expand significantly in the coming years and play a critical role in the Kingdom’s efforts to diversify its economy. According to the National Industrial and Mining Information Center, the country’s mineral reserves are estimated at US$2.5 trillion as of April 2024. Some of the recent discoveries that will drive investment in the mining sector in the coming years include significant gold reserves in a 100-km stretch south of the existing Mansoura-Massara gold mine in the Al-Hurma governorate of Makkah. The Saudi Arabian Mining Company (Ma’aden), which announced the find in December 2023, plans to begin drilling in the Mansoura-Massara area this year. According to Ma’aden, as of the end of 2023, the gold reserves in Mansoura and Massara were estimated at 7,000,000 ounces, with an annual production capacity of 250,000 ounces.
The government is focused on accelerating exploration and mining activities and reducing the Kingdom’s dependence on oil revenues. In line with these efforts, in January 2024, Saudi Arabia’s Ministry of Industry and Mineral Resources signed memorandums of understanding (MOUs) with four countries – Egypt, Morocco, the Democratic Republic of Congo, and Russia. These agreements will enable joint initiatives and knowledge transfer. The ministry also announced $182 million in incentives, in collaboration with the Ministry of Investment, to support mineral exploration in the Kingdom and reduce the risks faced by early-stage exploration companies.
The Ministry of Industry and Mineral Resources issued 118 new industrial licenses in February 2024, bringing the total number of industrial licenses issued year-to-date to 270. By the end of February 2024, the Kingdom had 11,757 factories operating or under construction, with 93 factories starting production during the month.
In early April 2024, the Ministry of Industry and Mineral Resources announced six new investment opportunities in the mining sector for local and international investors. The ministry issued tenders for new exploration licenses for gold, copper, zinc, lead and silver ores across the Kingdom, covering a total area of over 940 km2. The investment opportunities include exploration licenses for Makman Hijab in Riyadh, Al Mihah in Makkah, An Nima and Al Hajira in Asir, and others.