Saudi Arabia has introduced a new incentive package aimed at attracting foreign direct investments (FDI) into its mining sector, which is part of the Kingdom’s ongoing efforts to diversify its economy. This initiative reflects the nation’s commitment to enhance its investment environment and foster growth within the mineral exploration industry.

The Ministry of Investment is working in close collaboration with the Ministry of Industry and Mineral Resources through a program designed to simplify investments in mineral exploration. This program is intended to stimulate exploration and create a more appealing investment landscape for both local and international mining companies.

At the Future Minerals Forum held in Riyadh in January, Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, stated that the Kingdom aims to promote exploration opportunities across 5,000 square kilometers of mineralized belts by 2025. This effort is aligned with Saudi Arabia’s broader strategy to establish mining as the third pillar of its industrial economy.

Additionally, Abdulrahman Al-Belushi, the deputy minister for mining development at the Ministry of Industry and Mineral Resources, announced that the Kingdom is projected to invest SR120 million (approximately $32 million) in 2025 as incentives for mining companies that possess the necessary technical expertise. This investment is part of a larger goal to attract international investments, with an aim to secure $100 billion annually in FDI by the end of this decade.

The recent collaboration between the two ministries follows the issuance of exploration licenses for multi-mineral sites located in Jabal Sayid and Al-Hajjlah. These licenses encompass a total area of 4,788 square kilometers, with companies expected to spend around SR366 million (about $97.6 million) on exploration activities over the next three years.

In 2023, Saudi Arabia revised its estimates of untapped mineral resources, increasing the figure to $2.5 trillion from a previous forecast of $1.3 trillion made in 2016. Furthermore, in January, the Saudi Cabinet authorized the Ministry of Industry and Mineral Resources to enter into a cooperation agreement with the World Economic Forum to implement a project focused on securing critical minerals for development.

As part of its strategy to attract quality investments, Saudi Arabia also designated five sites for the establishment of mining complexes in the Makkah and Asir regions, aiming to enhance transparency and support local communities.