Al-Falih: The mining sector in Saudi Arabia is a pillar of economic diversification
Minister of Investment Khalid Al-Falih affirmed that the mining sector in Saudi Arabia represents a highly profitable investment opportunity, citing the strong financial performance and high profitability achieved by leading national companies in this field. Al-Falih's remarks highlighted the major transformations underway in the Saudi economy under the Kingdom's Vision 2030.
Mining as a third pillar of national industry
Al-Falih explained that the mining sector is no longer merely a traditional extractive activity, but has become a pivotal pillar in the structure of the Saudi economy. The Kingdom aims to transform it into the third pillar of national industry, alongside oil, gas, and petrochemicals. He pointed out that the strategic objective extends beyond extraction to building an integrated manufacturing sector based on mineral resources, creating added value, positively impacting other economic sectors, and contributing to the creation of quality job opportunities.
Addressing challenges with investment incentives
Speaking about attracting capital, the Minister of Investment acknowledged that mining investment faces global challenges, most notably the risks associated with exploration and environmental hazards. However, he emphasized that the Kingdom has successfully addressed the disparity between these risks and expected returns by developing a comprehensive national strategy and enacting a modern and competitive mining investment system. He added that the sector urgently needs to intensify exploration efforts to extract the resources hidden within the Arabian Shield, affirming the availability of a range of government incentives and support mechanisms to encourage investors to take part in this phase.
Geopolitical importance and critical minerals
Al-Falih addressed the international dimension, noting that a strong mining sector has become an urgent necessity given current geopolitical realities. He explained that the world is witnessing major transformations that necessitate diversifying economic resources and building high resilience in global supply chains. The minister linked the importance of mining to the modern technological revolution, explaining that the energy transition and the rapid growth of artificial intelligence technologies have created an enormous and unprecedented demand for rare metals and critical materials—resources that the Kingdom seeks to secure in order to be a key player in ensuring the future of clean and technological industries globally.
Official estimates indicate that the Kingdom’s untapped mineral wealth is estimated at about $1.3 trillion (equivalent to 5 trillion riyals), including gold, copper, phosphate and other minerals, which enhances the Kingdom’s attractiveness as a global investment destination in this vital sector.
