RIYADH: Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef on Monday said transparency is the key to attracting investments in the Kingdom’s mining sector.
Speaking at a post-budget forum in Riyadh, Alkhorayef said Saudi Arabia is committed to environmental, social, and governance concepts in all sectors — including mining.
He said mining is the third pillar of Saudi Arabia’s development plan, and in January, the Kingdom moved to capitalize on the vast wealth hidden below ground with the establishment of a mining fund and support for geological surveys and exploration program activities.
Studies have estimated $1.3 trillion in reserves of phosphates, gold, copper, zinc, nickel, rare earth metals, and other minerals.
The mining sector managed to achieve the highest revenues in its history in 2021, exceeding SR727 million, an increase of more than 27 percent on the year before.
The minister said the Kingdom has launched several initiatives to boost the sector and to streamline it to attract more investments.
The number of mining complexes in Saudi Arabia has reached 360, according to recent official data.
Some 506 new licenses have been issued, including 133 exploration licences for minerals.
The Kingdom has already attracted major international investors, including US firm Alcoa Corp., which has a 25.1 percent stake in Ma’aden Bauxite and Alumina Co., and Ma’aden Aluminium Co., as part of $10.8 billion joint venture with Saudi miner Ma’aden, located in Ras Al-Khair Industrial City in the Eastern Province.
Reflecting on 2021, Al-Khorayef indicated that the industrial sector attracted investments worth more than SR77 billion, while about 667 factories started operations. In 2020, the number of new factories was 515.
He said the Saudi Industrial Development Fund approved loans worth approximately SR11 billion for the establishment and expansion of the industrial, mining, energy and logistics sectors, while the amount disbursed by the fund during this year reached SR10 billion.
