RIYADH: Saudi Arabia’s mining sector is emerging as a global standout, supported by regulatory reforms, major investment, and a strong pipeline of domestic projects, a new analysis said.
In a report titled “Saudi Arabia Doubles Down on Mining,” S&P Global Ratings said the sector is poised for rapid expansion, with its contribution to gross domestic product expected to surge from $17 billion in 2024 to $75 billion by 2030, under the government’s Vision 2030 strategy.
Saudi Arabia’s mining ambitions are anchored in its substantial natural endowments and reinforced by robust government support. The country holds an estimated SR9.37 trillion ($2.5 trillion) in mineral reserves — a 90 percent increase on a 2016 forecast — thanks to new discoveries of rare earth elements, base metals, and expanded phosphate and gold deposits.
Hina Shoeb, credit analyst at S&P Global Ratings, said: “Saudi Arabia's proactive measures and substantial resources may help offset continued cost pressures and support the resilience of metals and mining companies’ credit profiles.”
The agency noted that unlike many global peers, Saudi Arabia’s metals and mining companies benefit from strong government support, a modern regulatory framework — including the Mining Investment Law — and substantial state-led investment in mega projects and infrastructure.
The number of exploitation licenses has increased by 138 percent since 2021, and exploration permits rose from 58 to 259, driven by the law’s transparency and investor-friendly policies.
Flagship state-owned enterprise Ma’aden reported SR32 billion in 2024 revenues, with a diversified portfolio spanning gold, phosphate, aluminum, and base metals. Its gold output alone reached 450,000 ounces, while phosphate production surpassed 6.5 million tonnes.
The number of exploration firms has grown from just six in 2020 to 133 in 2023. “As budgets continue to increase, the likelihood of discovering additional resources and expanding existing operations supports our view of sustainable, long-term growth of Saudi Arabia’s metals and mining industry,” the report said.
The Vision 2030 framework has driven a shift away from oil dependency, focusing instead on sectors like mining, tourism, and manufacturing.
The mining sector alone contributed about $400 million in revenues as of 2023 and is now backed by a $100 billion investment plan targeting critical minerals by 2035.
Government funding also includes a SR29 billion commitment to the Wa’ad Al-Shamal phosphate project.
Saudi Arabia’s geography offers logistical advantages with access to European, Asian, and African markets, while mega projects such as NEOM and Qiddiya are expected to drive up local demand for construction materials and high-value metals.
These projects, the report stated, “which benefit from funding and infrastructure investments, aim to reduce the country’s import costs for metals, including iron, steel, precious and semi-stones, by creating a solid domestic market for metals and minerals.”
However, the report also notes infrastructure and labor as potential bottlenecks. Many deposits are in remote desert regions lacking adequate transportation and water infrastructure.
Additionally, the sector’s expansion will require substantial investments in workforce training to avoid high labor costs from foreign recruitment.
S&P states that Saudi Arabia’s commitment to financial discipline, low debt levels in the sector, and targeted policy support position the Kingdom’s mining industry to grow sustainably — even amid volatile commodity markets.
“We expect these initiatives will spur domestic demand for metals, reduce import dependency, and over time improve the sector's operational efficiency,” S&P added.
