With its ambitious mining objectives Saudi Arabia faces both domestic and international constraints that officials must solve to maximize industry potential.
Domestically, the country still requires specialized infrastructure tailored to support large-scale mining operations, particularly in remote desert regions. Additionally, the kingdom must invest in education and training programs to develop a workforce skilled in advanced mining techniques and technologies.
Water scarcity in the desert areas poses a significant challenge, as limited water resources complicate mining operations and increase costs. To address these issues, Saudi Arabia needs to explore innovative water management solutions such as desalination and water recycling, specifically designed for mining activities. Furthermore, given the potential environmental impact of mining—such as land degradation, water contamination, and biodiversity loss, the country should implement and enforce rigorous environmental standards to ensure sustainable and responsible mining practices.
The mining industry in Saudi Arabia offers a large array of opportunities. There is great potential for economic expansion in the kingdom because of its substantial transition mineral reserves, which include unexplored amounts of phosphate, copper and rare earth elements. Because of its advantageous position, Saudi Arabia is able to access to important markets in Europe, Asia, and Africa, which serves as a competitive advantage. The government’s dedication to establishing a favorable investment climate, via the implementation of transparent regulations and incentives, is attracting investors from other countries and supporting growth inside the country. However, it is imperative that Saudi Arabia places a high priority on openness in international contracts in order to foster confidence, further benefit producer countries and entice global investment.
Internationally, Saudi Arabia faces challenges linked to geopolitical dynamics and competition in the mining industry, requiring strategic diplomacy to secure lasting partnerships in a shifting global economy. As Saudi investments, particularly in Africa and other lower- and middle-income countries, expand, the kingdom must ensure these ventures are mutually beneficial. This means developing long-term relationships that provide tangible benefits to host governments and communities, such as fair revenue-sharing, infrastructure investment, and skills transfer. By committing to transparent and equitable partnerships, Saudi Arabia can strengthen its role as a responsible global actor, ensuring its investments align with its mining objectives while also promoting sustainable growth in host countries.
