Saudi Arabia’s prosperity is rooted primarily in the production and export of oil and gas. However, the decline in global oil prices in 2014–15 and the acceleration of the green transition have put pressure on the King­dom to diversify its economic model. In 2016, Saudi Arabia responded to that pres­sure by launching “Vision 2030”, which pro­vides for significant investments in tourism, renewable energy and large-scale construction projects such as the NEOM megacity. At the same time, it is ambitiously expanding its mining industry, with the focus not only on tapping its mineral resource reserves but, more important, on boosting local process­ing capacity. Also, Saudi Arabia is aiming to increase industrial value added through battery and hydrogen production as well as the manufacture of electric vehicles (EVs). To achieve these goals, the Kingdom is actively seeking partners and expertise from both the West and China (the latter’s strategic approach to the resources sector closely resembles Saudi Arabia’s current strategy). It is the financial strength of the PIF that largely underpins the Saudi efforts across various stages of the supply chain – from resource extraction to EV production – raising questions about the market viability of those projects and the potential risks for partnerships.

Until now, mining has played a minor role in the Saudi economy, contributing less than 1 per cent to GDP. The main focus has been on gold, while phosphate, bauxite, copper, zinc, feldspar and silver are mined, too. Those minerals the EU considers stra­tegic, copper and feldspar, account for just 0.3 per cent and 1.6 per cent of global pro­duction, respectively. However, Saudi Ara­bia has repeatedly pledged to invest heavily in domestic mining: it recently set the tar­get of investing some US$46 billion by 2030. For its part, the consortium Ajlan & Bros, in partnership with the British firm Moxico Resources, plans investments of around US$14 billion by 2030.

Internationally, Saudi Arabia is seeking to establish a favourable image on the global resource market. Since 2022 it has hosted the annual Future Minerals Forum (FMF), in a bid to position itself as a hub for international resource diplomacy. At the last FMF, which took place in January 2024, the Kingdom released a new estimate of the value of its mineral resource reserves, in­clud­ing untapped deposits such as rare earth elements: approximately US$2.5 tril­lion. Currently, the state-owned Saudi Ara­bian Mining Company (Ma’aden) operates 17 local mines and sites. Because geological data are lacking, Saudi Arabia launched a US$530 million geological survey pro­gramme in 2020 in cooperation with the Chinese Geological Survey. The Kingdom, which relies on foreign expertise and in­vestment for exploration and new mining projects, has been actively seeking to attract international companies. In 2021, new legis­lation that aims to facilitate foreign access to mining licences went into effect. By the end of 2023, the number of mining licences had increased from eight to 19 and exploration licences from 58 to 259.

Currently, foreign investors have to ob­tain a licence from the Saudi Ministry of Investment to operate in the country. Start­ing in February 2025, a legislative amendment will streamline this process: instead of the licence requirement, applicant will have to complete a simplified registration process and foreign investors will receive equal treatment with Saudi companies. Other regulations for mining companies, including licences for extraction projects, are drawn up by the Ministry of Industry and Mineral Resources, which in January 2024 launched a US$182 million exploration funding programme aimed at reducing financial risks for companies. Despite all these measures, it will take years for Saudi Arabia’s mining sector to significantly in­crease production, as both the planning and construction of new mines are time-intensive.