Saudi Arabia launches incentives package to attract FDI in mining sector 

In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion. Shutterstock
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Updated 25 March 2025
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Saudi Arabia launches incentives package to attract FDI in mining sector 

RIYADH: Saudi Arabia has launched a new incentive package to attract foreign direct investments into the nation’s mining sector as the Kingdom steadily continues its economic diversification efforts. 

According to a Saudi Press Agency report, the Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry. 

This initiative is also part of the Kingdom’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies.

Speaking at the Future Minerals Forum in Riyadh in January, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said that the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the country’s broader plans to establish mining as the third pillar of its industrial economy. 

During the same event, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that the Kingdom is projected to invest SR120 million ($32 million) in 2025 as mining incentives aimed at supporting companies with the right technical expertise. 

Attracting international investments in the mining sector also aligns with Saudi Arabia’s ambitious goal to secure $100 billion a year in FDI by the end of this decade. 

The latest collaboration between both ministries follows the granting of exploration licenses for multi-mineral sites in Jabal Sayid and Al-Hajjlah.

The licenses cover a total area of 4,788 sq. km. and companies are expected to spend approximately SR366 million ($97.6 million) on exploration over the next three years.

In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion. 

In January, the Saudi Cabinet also authorized the Kingdom’s Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to implement a project aimed at securing critical minerals for development.

In the same month, Saudi Arabia also allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the Kingdom’s strategy to attract quality investments, enhance transparency, and support local communities.


Oman inflation at 1.6%, latest figures show

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Oman inflation at 1.6%, latest figures show

RIYADH: Oman’s consumer price index rose by 1.6 percent in December compared with the same month a year earlier, reflecting moderate inflationary pressures at year’s end.

Average inflation for the January–December 2025 period increased by 1 percent, according to official data.

Figures released by the National Center for Statistics and Information showed that miscellaneous personal goods and services recorded the sharpest price increase, rising by 10 percent year on year. 

This was followed by transport at 2.8 percent, restaurants and hotels at 2.6 percent, and furniture, household equipment and routine maintenance at 2.4 percent, as well as education at 2.2 percent. 

Food and non-alcoholic beverages prices increased by 1.1 percent, while clothing and footwear rose by 0.2 percent and health by 0.1 percent. In contrast, prices in the culture and recreation group declined by 0.1 percent. 

Housing, water, electricity, gas and other fuels, as well as tobacco and communications, remained unchanged over the period. 

Within the food and non-alcoholic beverages category, December prices compared with the same month of 2024 showed notable increases in fish and seafood at 6 percent and fruits at 4 percent. 

Sugar, jam, honey and confectionery rose by 3.5 percent, milk, cheese and eggs by 2.1 percent, and non-alcoholic beverages by 0.9 percent.

Meat prices increased by 0.8 percent, bread and cereals, oils and fats by 0.7 percent, and other unclassified food products by 0.4 percent, while vegetable prices fell by 5.8 percent. 

Regionally, Al Dhahirah governorate recorded the highest inflation rate at 2.5 percent by the end of December compared with a year earlier. 

Inflation also rose by 2.1 percent in Al Dakhiliyah, 1.7 percent in Muscat and Al Buraimi, and 1.5 percent in South Al Batinah. 

South Al Sharqiyah and Musandam each posted increases of 1.1 percent, while North Al Sharqiyah and North Al Batinah rose by 0.9 percent. Al Wusta and Dhofar recorded inflation of 0.8 percent. 

The report highlights the relative importance of expenditure groups within the consumer price index basket, underscoring why movements in certain categories have a greater impact on overall inflation.

Housing, water, electricity, gas and other fuels carry the largest weight at 31.7, followed by food and non-alcoholic beverages at 20.6 and transport at 14.5.

Together, these three groups account for more than two-thirds of the CPI basket, meaning price stability in housing and utilities can significantly moderate headline inflation even when sharper increases are recorded in smaller-weight categories such as miscellaneous goods and services. 

The analysis also notes that around 56,640 individual price quotations were collected from 3,907 sources across the Sultanate during the reference period. 

In addition, rental data were gathered from a dedicated sample of 1,509 rented housing units, providing a detailed and representative measure of housing costs, which remain the most heavily weighted component of the inflation basket.