\n\tJEDDAH: Saudi Arabia\u2019s mineral resources are becoming a key driver of industrial diversification under Vision 2030, as policymakers aim to shift the sector from raw extraction toward downstream manufacturing, technology transfer, and strategic supply chain development.<\/p>\n
\n\tWith an estimated $2.5 trillion in untapped mineral resources, the Kingdom is advancing what officials have described as a third pillar of the economy, complementing oil and petrochemicals.\u00a0<\/p>\n
\n\tThe shift reflects both domestic diversification priorities and global demand for critical minerals essential to clean energy, advanced manufacturing, and defense industries.<\/p>\n
\n\tMinerals spark investment, partnerships<\/p>\n
\n\tIn 2025, Saudi Arabia\u2019s mining sector recorded a sharp increase in new mining exploitation licenses, with 61 permits issued compared with 19 the previous year. Total investment in newly licensed projects exceeded SR44 billion, covering strategic ores such as gold and phosphate.<\/p>\n
\n\tForeign companies accounted for about two-thirds of all participants, highlighting strong international confidence, with the sector\u2019s contribution to GDP doubling to SR136 billion ($36.7 billion) in 2024, demonstrating the practical impact of regulatory reforms and Vision 2030 initiatives.<\/p>\n
\n\tFrom minerals to industrial and global influence<\/p>\n
\n\tSpeaking to Arab News, Saurabh Priyadarshi, a geologist and adviser for mining and metals at Geoxplorers Consulting Services, said Saudi Arabia is moving \u201cfrom a resource-rich nation to a global minerals sovereign, supported by the latest 2023\u20132026 data.\u201d<\/p>\n
\n\tHe noted that the mining sector\u2019s contribution to gross domestic product reached SR64 billion in 2023, with a target of SR97 billion by 2030, adding that annual gold output now exceeds 500,000 ounces, while aluminum production has surpassed 900,000 metric tonnes.<\/p>\n
\n\t\u201cSaudi Arabia is transforming its $2.5 trillion mineral endowment into a cornerstone of industrial sovereignty,\u201d he said.<\/p>\n
\n\tBeyond precious and base metals, he added, Saudi Arabia has leveraged large phosphate reserves at Ras Al-Khair to become a major fertilizer exporter, reinforcing its role in global food security supply chains.<\/p>\n
\n\tYaseen Ghulam, an associate professor of economics and director of research at Al-Yamamah University in Riyadh, said the estimated $2.5 trillion in undeveloped mineral resources \u201cis being used as a strategic tool to increase the Kingdom\u2019s geopolitical clout and further integrate into international supply chains and industry.\u201d<\/p>\n
\n\tHe noted that by integrating mineral extraction with manufacturing, processing, and strategic international trade partnerships, Saudi Arabia is transforming its mineral wealth into a source of industrial power \u2014 driven by value-chain development, foreign investment, technology transfer, and collaborative ventures with nations and global business conglomerates.<\/p>\n
\n\tCommenting on the markets likely to face the most disruption, Ghulam told Arab News they are tied to innovative materials, clean technology, and defense supply chains.<\/p>\n
\n\t\u201cThese industries and sectors require minerals such as rare earth elements, copper, lithium, and nickel and the Kingdom is prioritizing and investing heavily in these minerals under the Vision 2030 plan,\u201d he added.<\/p>\n
\n\tThe global importance of such minerals has been highlighted by the International Energy Agency, which has warned that supply chain concentration poses risks to the energy transition. As countries seek diversified and secure sources of supply, Saudi Arabia is positioning itself as a reliable alternative hub. Central to that strategy is the development of integrated industrial clusters.<\/p>\n
\n\tIndustrial clusters and midstream competitiveness<\/p>\n
\n\tPriyadarshi pointed to the \u201cCluster Strategy\u201d at Ras Al-Khair and Wa\u2019ad Al-Shamal that has redefined industrial synergy, attracting SR250 billion in planned investments and yielding over 1,300 new industrial licenses.<\/p>\n
\n\t\u201cBy co-locating extraction, refining, and manufacturing, the Kingdom has achieved double-digit percentage reductions in logistics costs. This integrated model serves as a global blueprint for productivity, aligning supply chains and technology flows to enhance the Kingdom\u2019s midstream competitiveness,\u201d he said.<\/p>\n
\n\tGhulam said Saudi Arabia is advancing integrated downstream industrial clusters through strategic site development, including Oxagon and Ras Al-Khair, legislative reforms such as the Mining Investment Law, international partnerships connecting Asian, European, and African markets, and major infrastructure investments.<\/p>\n
\n\t\u201cThe Kingdom can improve its efficiency, competitiveness, and long-term industrial resilience by taking note of the achievements and subtleties of other resource-rich economies, particularly in striking a balance between upstream dominance and downstream processing, innovation ecosystems, and sustainable practices,\u201d he said.<\/p>\n
\n\tHe added that successful examples include Indonesia with nickel and EV battery materials, Morocco with processing and supply chain hub, and Australia which has critical minerals and innovation clusters, which the Kingdom can study to inform its own strategy.<\/p>\n
\n\tTechnology, skills, and innovation<\/p>\n
\n\tGhulam highlighted the progress and remaining challenges in Saudi Arabia\u2019s mineral sector, saying that with the help of workforce frameworks, regulatory reforms, and strategic collaborations with companies such as MP Materials, Barrick Gold, and Alcoa, the Saudi mineral industry is spearheading innovative investments, technology transfer, and skill development.<\/p>\n
\n\tWhile infrastructure and investment are advancing, developing local skills and technology capabilities remains critical for long-term competitiveness. Priyadarshi highlighted the Mining Skills Framework launched in 2026, which standardizes sector-wide competencies.<\/p>\n
\n\t\u201cDeployment of autonomous hauling, digital mining, and AI-driven exploration is being balanced with a focus on ESG standards. While gaps in high-end R&D remain, the focus has shifted toward environmental stewardship and digital integration to meet \u2018green\u2019 mineral production benchmarks,\u201d he said.<\/p>\n
\n\tAt the same time, Ghulam noted that deficiencies remain in local innovation ecosystems \u2014 including a relative scarcity of research labs, innovation incubators, and industry-academia collaboration platforms \u2014 as well as in specialized high-tech skills and deep research and development capabilities.<\/p>\n
\n\t\u201cIn order to accept worldwide best-in-class standards and contribute its own technologies and processes to the future of the mining and advanced materials industries, the Kingdom must overcome these obstacles over shorter and longer periods as benchmarks are moving fast,\u201d Ghulam said.<\/p>\n
\n\tGlobal positioning and sustainable growth<\/p>\n
\n\tPriyadarshi and Ghulam highlighted that Saudi Arabia\u2019s mineral sector is not only a driver of economic diversification but also a key instrument for integrating the Kingdom into global value chains.<\/p>\n
\n\tGhulam said realizing this potential requires addressing challenges such as remote locations, fragmented supply chains, skills and technology gaps, geopolitical uncertainties, and environmental pressures including water scarcity, land degradation, and pollution.<\/p>\n
\n\tIn line with Vision 2030\u2019s sustainability and competitiveness objectives, he emphasized, Saudi Arabia can position its mining sector as both globally responsible and economically transformative by integrating green practices, robust logistics, diverse alliances, and strong governance mechanisms.<\/p>\n
\n\tFor his part, Priyadarshi noted that spanning 45 identified minerals, the Arabian Shield provides a vital hedge against supply chain concentration, adding that the Kingdom \u2014 strategically positioned between the Red Sea and the Gulf \u2014 offers de-risked access to Asian, African, and European markets.<\/p>\n
\n\tHe further said that by developing domestic capacity in rare earths and battery metals, the Kingdom is positioning itself as \u201ca credible alternative to existing monopolies, anchoring regional manufacturing hubs and strengthening global supply chain resilience.\u201d<\/p>\n
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