Saudi Arabia

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Covering two million square km, the Kingdom of Saudi Arabia is the largest country by landmass in the Middle East and the 13th largest in the world. The Kingdom's geology gives it an abundance of natural resources and raw materials. Saudi Arabia was the third-largest crude oil and condensate producer after the United States and the Russian Federation in 2020 and the largest exporter (16 percent of global crude oil exports, in 2019). The Kingdom has identified 1,273 sites of precious metals and 1,171 sites of non-precious metals. As a part of the Kingdom's Vision 2030 program, Saudi Arabia is working to increase the mining sector's contribution to the Saudi economy to make the mining sector the third pillar of the Saudi industry, alongside the oil and gas and petrochemical sectors. Saudi Arabia announced on June 9, 2020, the issuance of a new Mining Law, which offers specific changes and incentives for investors not found in the previous Mining Law, such as a new fund to provide sustainable finance for the development of the mining sector as well as to support geological survey and exploration programs.

Quick Facts

Gold

Primary Mineral

Undisclosed

Estimated Reserves

No royalties +

Tax Benefits

10+

Active resource businesses

The Saudi economy has witnessed growth in many sectors, taking advantage of the natural resources in the Kingdom. This growth resulted in building a solid economic base, becoming one of the twenty largest global economies and an active member of the G20. Saudi Arabia is one of the leading players in the global economy and global oil markets. In April 2016, the Saudi Government announced a broad set of socio-economic reforms, known as Vision 2030. The Vision 2030 Has Worked to Enhance The Role Of Industrial Cities To Develop The Mining Sector, Including The Cities Of Ras Al-Khair And Waad Al-Shamal. The Sector Has Been Further Enabled By Launching A Mining Investment System And Improving The Infrastructure For Logistics Services And Investments. As a result, the mining sector is poised for significant growth in the next few years. The role of the private sector is also set to grow, whose participation is viewed by the government as an essential means of optimizing output and developing related downstream industries.

Foreign companies looking to invest in the Kingdom’s mining sector should feel buoyed by the recent changes in Saudi Arabia’s mining law. They have created favorable conditions allowing greater access to the sector. These changes allow companies to work either with Saudi’s parastatal ‘Saudi Arabian Mining Co (Ma’aden) or through joint ventures with local companies. The Saudi government is conveying considerable support to the mining and metals processing industry through multiple megaprojects. These include a 2,750 Km North-South railway connecting Al-Jalamid mine with processing facilities in Ras-al-Khair Industrial city (RIC), a ‘world-class metals and minerals city’ with integrated industrial complexes, ports, and an end-to-end ecosystem. Waa’d Al Shamaal City includes Maaden’s phosphate mining expansion and many other extensive world-class facilities, allowing for 16 Mt/ year production capacity. Additionally, more than SAR 90 billion (USD 25 billion) is being invested in new mining ventures and plants to process industrial ores

 

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