Ashraf AboArafe
The Kingdom has recorded significant progress in the global assessment of investment risks in the mining sector issued by MineHutte in cooperation with Mining Journal, achieving the fastest global growth in the development of the regulatory and basic environment attractive to investments during the past five years (2018-2023), since the launch of the transformation program in the sector, starting with the development of… The legislative structure and regulations of the sector, so that the Kingdom has become a “preferred destination” for investment in the mining sector.
The classifications contained in the evaluation included an improvement in the Kingdom’s evaluation in the mining licensing index, as it was ranked as the second best country in the licensing environment in the world, in addition to a significant development in the Kingdom’s evaluation in the financial policies index, which made it one of the top 10 countries in this index in the world.
The Kingdom has made significant progress in the index of legislative structure and regulatory regulations. To become one of the best mining countries in the world in terms of legislative and regulatory frameworks, and thus the Kingdom is a role model in improving the investment environment and developing the mining sector in neighboring countries.
The global assessment of investment risks in the mining sector highlighted the Kingdom’s efforts to develop the mining sector, starting with the launch of the comprehensive strategy for mining and mineral industries in 2018. To maximize the value achieved from natural resources, supported by the development of the mining investment system, which forms the legislative and regulatory structure of the sector, and provides a clear, transparent and facilitating environment for investors in the mining sector, in addition to comprehensive reforms and incentives for investors in the sector.
His Excellency the Deputy Minister of Industry and Mineral Resources for Mining Affairs, Engineer Khaled bin Saleh Al-Mudaifer, confirmed that this classification is the highest in the world; It comes as a result of the efforts made to develop the mining sector during the past five years, as the Kingdom, since the launch of the Kingdom’s Vision 2030 under the leadership of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister – may God protect him – has begun to take serious steps to diversify the sources of its economy, in addition to… Oil and gas, and on this basis, programs and initiatives were developed within the transformation plan to develop the mining sector. To become the third pillar of national industry.
His Excellency pointed out that in light of this transformation, the new mining investment system and its executive regulations were issued, the launch of the geological survey project for the Arabian Shield region, the largest of its kind in the world, the accelerated exploration initiative, and dozens of initiatives aimed at developing and transforming the sector, adding that these results motivate investors to invest in opportunities in the Kingdom. It has become a leader in the global mining and metals industry.
In turn, MineHutte’s Chief Operating Officer and Research Director, Emma Beatty, praised in the report; With the great and positive transformation that the Kingdom has witnessed, she said: “The transformation in the mining sector in the Kingdom is the most prominent at the regional and international levels during the past five years, and that the reforms that the sector has witnessed at the regulatory, legislative and infrastructure levels are the main reason behind its significant progress in the international classification of the report and its leadership in Risk classification in the report, and it is impressive and motivating that these major transformations contribute to attracting foreign investments and achieving the economic vision that the Kingdom has set for its mining sector.”
The risk analysis report, issued by MineHutte in cooperation with Mining Journal, is a reliable source for mining companies and investors around the world to determine investment destinations based on five criteria: (legislative framework, governance, infrastructure, investment incentives, and social standards).
The Kingdom seeks to attract foreign investments to the mineral sector, benefiting from the economic growth of its mineral resources, the value of which has recently doubled to reach more than 9.3 trillion riyals, as a result of the development of infrastructure and legislation, continuous exploration operations, local demand and its strategic location, as well as work to advance mining industries, including: The Kingdom’s mineral wealth includes gold, phosphate, copper, zinc and rare earth elements.
The mining investment system constitutes the regulatory infrastructure of the sector, achieves sector governance and provides incentives to investors, which contributes to enhancing transparency and sustainability principles, and increasing investor confidence in the sector, in addition to working on the digital transformation of the sector by launching a mining platform to grant mining licenses, and developing the national geological database. Which includes the outcome of 80 years of geological data and exploration information for the Kingdom, especially the Arabian Shield region.
The Ministry of Industry and Mineral Resources, in cooperation with the Ministry of Investment, also announced an incentive package that includes financial facilities for companies and investors wishing to invest in mineral resource exploration activities in the Kingdom. With the aim of supporting companies holding exploration licenses valid for less than 5 years, with a value of up to a maximum of 7.5 million riyals for each license, the Saudi Industrial Development Fund also provides up to 75% of the costs of eligible exploration and mining projects.
It is noteworthy that the Ministry of Industry and Mineral Resources organizes the International Mining Conference, which in its previous three editions witnessed the participation of more than 75 countries in the international ministerial meeting, and 14,000 participants and visitors from senior international speakers to discuss the future of the mining and metals industry, and attract investments to the major mining region extending from Africa to… West and Central Asia, and transforming the outcomes of the dialogue into applicable actions on the ground, in addition to contributing to solving a set of challenges facing the mining and metals sector, especially in light of the increasing demand for strategic minerals necessary to achieve the transition towards clean energy and meet the goals of neutrality.
