Saudi Arabia offers investment opportunities in developing mining sector

The Ministry of Industry and Mineral Resources (MIMR) was established in 2019 to oversee mining and industrial development, with Saudi Arabia aiming to build a globally competitive mining sector by establishing a modern and transparent legal framework, attracting foreign investment, offering financial incentives, developing infrastructure, and promoting sustainability and community engagement.

Saudi Arabia has been known long for its gold and copper potential, with the Arabian Shield in western Saudi Arabia, formed from ancient Neoproterozoic rocks, rich in mineral deposits. The estimated value of unexploited mineral resources has risen to US$2.5 trillion.

The Saudi Arabian Mining Company (Ma’and) was founded in 1997 to lead the development of the mining sector, growing to become one of the world’s top ten mining companies with a market capitalisation of approximately US$49.3 billion.

The Mining Investment Law, introduced in 2020, modernised the legal framework to attract foreign investment and Saudi Arabia has launched multiple exploration licensing rounds, including partnerships with global mining firms like Barrick, Vale, and Ivanhoe Electric.

This law and other implemented regulations govern all mining activities in the Kingdom, which offers financial support of up to 7 million Saudi Arabian Riyal (SAR) (approx. US$1.85m) per license for the first five licenses, and up to 75% co-funding of capital and subsidiaries for advanced exploration.

Before investing, it is important to understand the classification of minerals and how to obtain a license.

To do so, investors must prove they possess the qualifications and financial capability to ensure the carrying out of the mining operation, that the company must not have filed for bankruptcy or had a license revoked in the past three years and its CEO must not have a recent criminal record.

Investors can submit their proposal through Ta’adeen, a platform for digital bidding provided by MIMR.

The license bid is required to include technical and commercial plans and environmental and social impact strategies. Winning bids are often selected based on transparency and alignment with the goals of Vision 2030. Additionally, license holders must always maintain proper documentation for mineral transport and sales and submit regular reports to the MIMR, while adhering to environmental and social impact plans. Investors should always engage with the local community and contribute to its development, supporting Vision 2030’s localisation goal and strengthening investor-community relations.

The licensing round forms part of a broader strategy to accelerate greenfield exploration and development in the Kingdom’s mining and minerals sector, unlock its mineral resources valued at US$2.5 trillion, and strengthen value-added mineral supply chains. It also supports the Ministry’s wider plan to open more than 50,000 km² of prospective mining sites for exploration licensing throughout 2025.

Investors can access relevant geological and technical data on the Ta’adeen portal to ensure equal opportunities among all the competitors. This step is expected to enhance transparency and efficiency in exploration processes, increase exploration expenditure in the Kingdom, enrich the National Geological Database with additional technical information, create new job opportunities and promote sustainable economic growth. These efforts align with Saudi Arabia’s commitment to developing the mining sector to meet global standards, with a strong focus on environmental sustainability and social responsibility.

The Ministry of Investment (MISA), in collaboration with MIMR, launched the second phase of the mining exploration enablement program in January. The program, which provides financial support of up to SAR7.5 million per project for companies holding valid exploration licenses for less than five years, aims to support mineral exploration in Saudi Arabia, mitigate risks for exploration companies in their early stages, and encourage investment in the sector.

This is in addition to the incentives stipulated in the Mining Investment Law, which allows for 100% foreign-owned companies and provides funding of up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF).

The Mining Investment Law classifies minerals into three classes:

• Class A: metallic minerals and precious stones, such as gold and copper;
• Class B: industrial and non-metallic minerals, such as phosphate; and
• Class C: construction materials, such as limestone and sand.

Saudi Arabia inviting further investment in the mining sector is aimed at boosting its economy, increasing the development of local communities, strengthening its position as a global mining hub and securing critical minerals for energy transition.

The mining sector has been transformed into a cornerstone of Vision 2030. With a modern legal framework, vast untapped mineral resources and strong government support, Saudi Arabia offers a highly attractive environment for both local and international investors, while the Mining Investment Law ensures transparency, investor protection and sustainability.

By investing in mining, stakeholders not only gain access to a high-potential market but also contribute to national goals such as job creation, local community development and the global energy transition, as Saudi Arabia positions itself as a global mining hub.