The next giant: Will Saudi Arabia transform the mining sector into a "new Aramco"?
From the heart of a desert that has woven one of the greatest oil stories in modern history, Saudi Arabia begins writing a whole new chapter in the world of underground riches. Today, the bet is no longer on "black gold" alone, but rather the economic engine is moving towards the "third pillar" of the national industry: the mining sector.
Saudi Arabia is basing this historic transformation on a land that is geologically classified as one of the regions in the world richest in untapped minerals, specifically the Arabian Shield, which extends over an area of half a million square kilometers, carrying in its bowels mineral wealth estimated at more than 2.5 trillion dollars (9.377 trillion Saudi riyals).
Key Competitive Advantages of the Saudi Mining Sector
Diversification of Strategic Resources: The sector is not limited to gold, copper, and iron, but extends to include future-proof and critical minerals for modern industries such as lithium, phosphates, and rare earth elements.
Infrastructure and Logistics: Efficient connectivity through modern rail networks, ports on the Red Sea and the Arabian Gulf, and direct energy supply at competitive prices.
A Stimulating Investment Environment: The new mining investment law ensures transparency, expedited licensing, and access to financing of up to 75% of project costs through the Saudi Industrial Development Fund.
Localization and Manufacturing Strategy: The Kingdom is moving beyond simply exporting raw materials and is transitioning towards local manufacturing and complete supply chains (from mines to the final product).
The Kingdom of Saudi Arabia is undergoing a strategic transformation aimed at diversifying sources of national income and achieving the goals of Saudi Vision 2030. In this context, the mining sector constitutes the "third pillar" of the national industry, alongside oil and petrochemicals. In this approach, the Kingdom relies on huge geological potential and untapped mineral resources estimated at approximately $2.5 trillion (9.377 trillion Saudi riyals).
Geographical Distribution and Mineral Resources Map
The Kingdom's strategic mineral resources are distributed according to the nature of its geological formations as follows:
The Arabian Shield Belt (West and Southwest):
Area: Approximately 630,000 square kilometers.
Major minerals: Gold, silver, copper, zinc, and rare earth elements.
Key sites: Gold mines (Mansoura and Masarra, Al-Duwaihi, Mahd Adh-Dhahab), and the Jabal Sayid copper and zinc mine.
The Northern Region (Tarif and Hazm Al-Jalamid):
Major mineral: Phosphate ore.
Importance: Hosting the Waad Al-Shamal gas and mining complex, which places the Kingdom among the world's largest producers and exporters of phosphate fertilizer.
The Central and North-Central Region (Hail and Qassim):
Major minerals: Bauxite (aluminum ore) and magnesite.
Key sites: Al-Zubairah bauxite mine and extraction sites in Al-Ghazalah Governorate.
Competitive features of the sector
• New mining investment system: Providing a relaxed legislative environment that ensures transparency and accelerates the issuance of exploration and exploitation licenses.
• Financing support: Providing financing of up to 75% of mining project costs through the Saudi Industrial Development Fund.
• Infrastructure and logistics network: Connecting mines to processing areas and ports via the SAR (SAR) train network and designated ports on the Red Sea and the Arabian Gulf (such as Ras El Kheir Port).
• Value-added chains: Focus on local processing and manufacturing of raw materials rather than exporting them as raw materials, which enhances local content and raises added value.
The Saudi mining sector has sufficient capabilities to build a success story parallel to the oil sector, supported by the presence of Maaden as a leading executive arm, and increasing global partnerships, so that the sector becomes a major driver of economic growth and the localization of advanced industries in the coming decades.
