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Mining Sector in Saudi Arabia

Mining is an up-and-coming sector in the Saudi economy and is becoming increasingly important, particularly as the country endeavors to reduce its dependence on oil and gas.

Construction Mining site
from Unsplash, ID -9jPJrfLTBi0 / by shane mclendon

Strategic expansion of infrastructure

The national strategy includes the expansion of infrastructure, including transport routes, ports and processing facilities, in order to make mining more efficient and competitive.

 

The National Industrial Development and Logistics Programme (NIDLP), launched in 2019, focuses primarily on changes in industrial regulation and legislation. This programme promotes investment from the private sector, expands infrastructure and develops new financing options. Of particular note is the Saudi Mining Investment Law, which creates new incentives for foreign investors by reducing the tax rate from 45% to 20%.

 

According to estimates, the country's mineral deposits are worth more than USD 1.3 trillion. By 2030, the mining sector is expected to account for 1.5% of GDP, a significant increase on

Mining and extraction of natural resources

Saudi Arabia has large deposits of gold, copper, bauxite, phosphate, zinc, nickel and titanium worth around USD 2.5 trillion, which have only been mined to a limited extent to date. Lithium and rare earths are also to be mined in the future. In this context, a partnership has been established between Saudi Aramco and Ma'aden, the country's largest mining company, to explore lithium extraction.

 

Construction Welding machine
Construction Welding machine
from Unsplash, ID 8KfCR12oeUM / by christopher burns

Mining Sector in brief: 

  • Market volume: $ 20 bn.
  • Growth projection: 1.03 % per annum
  • Lithium
  • Rare minerals
  • Carbon Capture and Storage
Construction vehicle
Construction vehicle
from Unsplash, ID -J9dJVxlr_gs / by guillermo-diaz

Potential for German companies

Saudi Arabia is rich in resources that are being tapped into for the development of value chains within the Kingdom. The mining industry is one of the key sectors in the diversification of the economy. The opportunities for German companies are plentiful. 

 

The expansion of the mining sector opens up a wide range of opportunities for German companies to position themselves on the Saudi Arabian market - be it with technologies such as carbon storage, innovative concepts for occupational safety, sustainable supply chains or specialized equipment. German expertise in mining and tunnel construction as well as in extraction infrastructure is also sought after. Partners for joint ventures with international mining companies are particularly sought after in order to minimize risks and benefit from their experience in the exploration and extraction of valuable mineral resources.

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