Saudi Arabia’s Mining Sector Reforms Recognized as Fastest-Growing Globally
In a new report by MineHutte, an independent research and consultancy firm based in England, Saudi Arabia’s mining sector reforms have been hailed as the fastest-growing regulatory and investment-friendly environment globally over the past five years.
Kingdom Ranked Second-Best Country for Licensing Environment
The report also ranked the Kingdom as the second-best country globally for its licensing environment, following a 138 percent increase in exploitation license issuance since the implementation of the new Mining Investment Law in 2021. The Ministry of Industry and Mineral Resources has worked to boost mineral production and investment, issuing permits that rose from eight to 19 last year.
Strategic Shift Towards Mining as Foundational Industrial Pillar
Saudi Arabia aims to make mining a foundational industrial pillar, with the Kingdom’s mineral wealth valued at an estimated SR9.4 trillion ($2.4 trillion). Emma Beatty, COO and research director at MineHutte, praised the significant transformation in the Kingdom’s mining sector, highlighting the reforms in regulatory, legislative, and infrastructural frameworks as reasons behind its substantial progress.
Global Recognition for Financial Policies Index
The report emphasized significant progress in the financial policies index, placing Saudi Arabia among the top 10 countries in this category. The Kingdom has also advanced in the legislative and regulatory framework metric, emerging as one of the world’s top mining jurisdictions.
Efforts to Develop Mining Sector
Saudi Arabia’s efforts to develop the mining sector include the launch of a comprehensive mining strategy and mineral industries in 2018. The development of the mining investment law aims to provide a clear, transparent, and investor-friendly environment for the sector.
Revision of Estimates for Untapped Mineral Resources
Saudi Arabia revised its estimates for untapped mineral resources, including phosphate, gold, and rare earths, upwards to $2.5 trillion from a 2016 forecast of $1.3 trillion. This increase is attributed to existing resources such as phosphate, newly discovered resources like rare earths, and a reassessment of commodity pricing.
Mining’s Crucial Role in Economic Diversification
Mining plays a crucial role in Riyadh’s endeavors to develop an economy less reliant on oil, with a focus on exploiting extensive reserves of phosphate, gold, copper, and bauxite. Saudi Arabia has taken steps to diversify its economy beyond oil and gas, establishing programs and initiatives within Vision 2030 to develop the mining sector as the third pillar of the national industry.
Trusted Risk Analysis Report for Industry Players and Investors
The risk analysis report by MineHutte, in collaboration with Mining Journal, is trusted by industry players and investors globally to choose investment locations based on laws, governance, infrastructure, incentives, and social standards.