Saudi Arabia's mining sector: The Kingdom's ambitions for a new global leadership
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef, affirmed that the Kingdom seeks to play a pivotal role in the mining and minerals sector globally, commensurate with its historical role in stabilizing global energy markets. This affirmation came during his participation in the St. Petersburg International Economic Forum, where he noted that this direction represents a fundamental pillar of the Kingdom’s strategy to diversify its national economy and achieve the goals of Vision 2030.
These efforts come within the context of a comprehensive economic transformation underway in the Kingdom, where reliance on oil is no longer the only option. Since the launch of Vision 2030, the Saudi leadership has positioned the mining sector as the third pillar of national industry, alongside the oil and petrochemical sectors. This vision is based on the vast natural resources held within the Kingdom's lands, particularly in the mineral-rich Arabian Shield region. Intensive geological survey efforts have resulted in an increase in estimates of untapped mineral wealth from $1.3 trillion in 2018 to approximately $2.5 trillion currently, an increase of nearly 90%, opening up enormous investment opportunities.
Vision 2030: Transforming latent wealth into an economic engine
The view of mining is no longer limited to extracting raw materials; it now encompasses building an integrated system that supports the sector's growth and enhances its added value. Al-Khurayyif explained that developing the sector depends not only on an abundance of mineral resources but also requires advanced infrastructure, modern technologies, sustainable financing, and a qualified workforce. The Kingdom is working to develop all these elements simultaneously to ensure the sustainability and resilience of global supply chains. This includes developing downstream industries that contribute to increasing the value of extracted minerals and providing finished products that serve local and global markets, thus supporting the growth of non-oil exports, which have recently reached record levels.
Saudi Arabia's mining sector: A global platform for securing supply chains
With the global shift towards clean energy and digital transformation, the demand for rare and critical minerals used in the electric vehicle, battery, and solar panel industries is increasing dramatically. Recognizing this importance, Saudi Arabia launched the International Mining Conference as a global platform bringing together governments, major mining companies, financial institutions, and academic bodies. The Minister noted that the conference has established itself as one of the world's leading specialized platforms, with its latest edition witnessing participation from 100 countries, all aimed at strengthening international cooperation to address the sector's challenges. Al-Khorayef emphasized that the Africa, Middle East, and Central Asia region possesses approximately 33% of the world's mineral reserves but contributes only 6% of global supply, highlighting the enormous opportunity to boost investment and develop infrastructure to unlock this potential.
Strategic partnerships to enhance international cooperation
During a panel discussion titled “Rare Earth Elements and Strategic Resources: Sovereignty and International Cooperation,” Al-Khorayef emphasized the importance of the partnership between the Kingdom of Saudi Arabia and Russia in the mining and minerals sector. He affirmed the Kingdom’s aspiration to expand cooperation and joint investment in rare and critical minerals, thereby supporting the shared interests of both countries and contributing to more stable global supply chains. The St. Petersburg International Economic Forum is one of the world’s leading economic events, bringing together government leaders, senior officials, and investors to discuss international economic issues and explore opportunities for cooperation and investment in strategic sectors.
