by Mr. Swapnil SUJAL•Published on December 1, 2025

Introduction

In 2016, Crown Prince Mohammed bin Salman launched Saudi Vision 2030 to diversify the economy and reduce dependencies on oil sector. As part of the ongoing programs, Saudi Arabia is focusing heavily on localization of industries and utilise its geography to become a major manufacturing, tourism, and trade hub. Saudi Arabia has a huge untapped mineral reserve worth $25 trillion which was largely ignored. The Vision 2030 strives to utilise these resources and shift the traditionally industries which were largely crumpled into three cities of Riyadh, Jeddah, and Damman. This has led to a heavy state and international investments in the mining sectors, changing of mining related laws, creating of new ministry, mining industrial cities and multiple initiatives and program to attract researchers, collaboration and internal investments. Through these programs the Kingdom seeks to create more than 200,000 jobs.

The Third Pillar of Saudi Industrialisation

There are 42 identified minerals with the total mineral wealth of the Kingdom estimated around $2.5 trillion. Saudi Arabia seeks to utilise its reserves in golds, phosphates, rare earth metals, lithium, etc. to become a major leader in mineral export. The projects are part of Saudi efforts to achieve localization of products by utilising its domestic resources, geography and talents through public-private partnerships, inviting investments from both international and reginal companies. In 2020, Saudi Arabia passes the New Mining Law which replaced the old mining law that was in place since 2025. The new law reduces the tax rates from 45% to 20% and allowed foreign and regional companies with more efficient process to get license.[1]

The mining sector generated a $400 million in 2023 while the following year in 2024 it contributed towards $7 billion. Under Saudi Vision 2030, the Kingdom is aiming to generate $75 billion contribution in GDP from the mining sector. Saudi Arabia ranks among top 10 countries from mining policy. The average time period to secure license is 90 days making it the second most efficient licence issuer globally. The Kingdom also recorded the highest mining growth investment in the Mining Journal.[2]

In 2019, King Salman issued a royal degree creating and appointing multiple ministries, commissions, and ministers. Saudi Arabia established a new Ministry for Industry and Mineral Resource which was to focus on mining sector and mineral industrial cities, while the Former Ministry of Energy, Industry and Mineral Resources was renamed the Ministry of Energy. [3]

In 2021, Saudi geological survey launched the national geological database to provide researchers with regional geological information, geophysical survey data and geological maps of the Kingdom.[4]

To further assists the researchers the Kingdom announced a mining exploration incubator program in 2023, “Nuthree”. The initiative provides aspiring students, professionals, researchers led startups and medium and small-scale companies with training workshops, seminars, courses, dialogues with professionals, experts and specialist in the mining industries. The program also helps in gathering and analysing geological data as well as assisting them in obtaining exploration licenses.[5]

The National Industrial Development and Logistics Program aims to make mining sector the third pillar of Saudi Industrialisation drive. In line with the aims, the Saudi geological survey inked multiple contracts in 2020 with international organisations worth $530 million, making it one of the biggest geological surveys in the world. The contracts were part of geological survey general program which aimed to create geological maps of the region, conduct atmospheric geophysical and multicomponent geochemical surveys. The program is exceptional in its volume as it seeks to survey 600,000 square kilometres of Arabian Shield. The geochemical survey is being conducted by China geological survey includes surveying nearly 110,000 samples while the Aerial geophysical survey is being conducted by Sander geophysics in sector 1 and Xcalibur Airborne Geophysics in sector 2 and 3 of the Arabian shield respectively.[6]

In the first quarter of 2025, Saudi Arabia launched new initiatives to attract foreign direct investments to achieve its goal of getting $100 billion investments in the mining sector by 2030. Five new sites were allocated in Aseer and Makkah provinces to develop mining complexes. The Ministry of Industry and Mineral Resources has collaborated with Ministry of Investments to grant license for mining sites at Jabal Sayid and Al-Hajjlah. The multi – mineral site covers an area of 4,788 square kilometres and targets an investment of $97.6 million in exploration of the site over the next 3 years.[7]

In October, Saudi Arabia conducted GEOMIN Symposium, the largest ever mining summit in the Middle East. The event which lasted three days saw 324 specialist, professionals and experts in the field of geoscience and mining sector from over 34 countries.[8]

Eastern Province – Ras Al Khair Industrial City

Ras Al Khair located in the Eastern Province of Saudi Arabia is one of the most important industrial areas. The site is crucial for its mineral resources of phosphate and sea access.

In 2019, the Royal commission for Jubail and Yanbu responsible for developing the Ras Al khair industrial city. The industrial city attracted investment worth over $26 billion. With this project Saudi Arabia is focusing on utilising the mineral resources of phosphate in the Eastern Province. Once completed the entire 179 square kilometre of zone is posed to create 91,000 jobs. The plan includes development of desalination plants, phosphate industrial complex, a maritime industrial complex which will consists of dry port, ship engine building platforms, ship report and maintenance zone, marine supply vessel area and others.[9]

In 2021, Ras Al Khair industrial city inked agreements to set up a 3 million square metres of complex to manufacture iron sheets for automative industries. The complex is to be built on a cost of $3.9 billion and will provide 24,000 direct and indirect jobs. [10]

While in 2022, South Korean company Doosan Heavy Industries and Construction started the constructing of metal casting and forging plant at King Salman Global Maritime industrial complex. The project worth around $834 million was schedule to be completed by 2025. The plant will be producing 60,000 tons annually.[11]

In 2025, Emirati company NMDC inaugurated its’ Fabrication Yard in the special economic zone. The project built at a cost of $54.4 million spread around an area of 40,000 square metres has an annual capacity of 40,000 tones and is equipped with automation and digital technology. Over the past five years, the company has been crucial part of development projects under Saudi Vision 2030 investing more than a billion dollars in total.[12]

Northern Province – Waad Al Shamal

Waad Al Shamal mineral industrial city forms one of the major sites dedicated for phosphate reserves. The Northern Province has mineral reserves worth $1.2 trillion. The region comprises of 5 phosphate ore site and 61 operating factories. The Kingdom has also issued licence for construction for 15 material quarries and 14 for mineral exploitation.[13]

In 2025, Saudi Arabia announced the 3^rd phosphate project, “Ma’aden” which has attracted investments worth $7.7 billion. Each the three projects will be producing 3 million tonnes annually increasing the regions phosphate production to 9 million tonnes annual. The Saudi Authority for Industrial Cities and Technology Zones (MODON) has also invested more than $130 million into multiple infrastructural projects which includes 32 ready factories and supporting unit, a 132 kilovolt, 200 megavolt-amperes power substation, overhead transmission lines, a 7-km bridge to connect industrial zone and international highway to create an efficient transportation system and increasing the residential building by creating 96 additional unit bringing the total residential at 579. Saudi Arabia has also established a $50 million Scientific Excellence School in Arar.[14]

Phosphate is an important component in the food and agriculture sector where it is heavily used as fertilizers. The kingdom is aiming to place itself as a potential player in the food sector by becoming one of the largest producers and exporters of phosphates.

Southern Arabia – Najran Industrial City

Najran is located in the south of the Kingdom along the border with Yemen holds industrial and mineral potential. The Najran industrial city developed by the Saudi authority for Industrial Cities and Technology Zones (MODON) covering 6.5 million sq. metres is home to nearly 90 factories with investment valued around $1.8 billion. The industrial loan in the region amounts to $238 million. As of 2024, Najran exported goods to nearly 25 countries. Mineral wise the region is rich in gold, silver, copper, zinc with a potential valuation around $38.6 billion making the region highly valued for mineral exploration. The region has 4 mineral mining sites for zinc and copper ores and 27 non-metallic mining sites for sand, granite and silica ores. These are Najran important sources in non-oil GDP for Saudi Arabia. Attacks against mines like done against oil facilities before can reduce the output and hurdle the mineral wealth for Saudi Arabia.[15]

In 2022, Najran municipality signed contracts with multiple companies worth nearly $7 million.[16]

In August 2023, Saudi Arabia in line with promoting industrialism investments setup state owned, Najran municipality investments corporation to direct investments in the states. The company was established to manage the municipal investment contracts, municipal service contracts and tourism development project.[17]

The commercial license registration grew by 56% in 2025 with the largest growth in the transport sector seeing a growth of 124% which was followed by the logistics sectors where the registration grew by 111%. More than 20 branches of Saudi Business centre have been established and the region has seen an investment of more than $2 billion.[18]

Conclusion

As of 2025, the program has completed 93% of the aerial survey of Arabian shield and collected over 88,000 samples from geological field survey. The Kingdom is exponentially rising the spending in mineral exploration. In 2018 the spending was only $20 per square kilometre which rose to $60 per square kilometres in 2023 crossing the Vision 2030 target of $53 per square kilometre. In 2025, Saudi Arabia further raised the spending by 100% up to $130 per square metres. The Kingdom has also largely jumped in the geological data ranking from 108^th position in 2017 to 23^rd in 2025.[19]

The Mining sector is posed to play an important role in localization and industrialisation goals of Saudi Arabia.

 

References

[1] Saudi Vision 2030. (2025). Strategy for the Mining Sector. https://www.vision2030.gov.sa/en/explore/strategies/strategy-for-the-mining-sector

[2] Al-Kinani, M. (2025, July 6). Saudi Arabia’s $2.5tn mineral reserves fuel industrial push. Arab News. https://www.arabnews.com/node/2607030/business-economy

[3] Arab News. (2019, August 30). King Salman issues royal decrees, including creation of industry and resources ministry. Arab News. https://www.arabnews.com/node/1547546/saudi-arabia

[4] SPA. (2021, December 10). Saudi Arabia launches National Geological Database. Arab News. https://www.arabnews.com/node/1984326/saudi-arabia

[5] SPA. (2023, March 10). Minister of Industry and Mineral Resources Launches ‘Nuthree’ Mining Exploration Incubator Initiative. Saudi Press Agency. https://www.spa.gov.sa/w1867566

[6] Arab News. (2020). Saudi geological survey signs contracts worth over $530 m. Arab News. https://www.arabnews.com/node/1750836/business-economy

[7] Narayanan, N. (2025, March 25). Saudi Arabia launches incentives package to attract FDI in mining sector. Arab News. https://www.arabnews.com/node/2594779/business-economy

[8] Fareed, S. (2025, October 12) Region’s largest mining summit opens in Jeddah. Arab News. https://www.arabnews.com/node/2618643/business-economy

[9] Hassan, N. (2025, April 5). Ras Al-Khair becoming Saudi Arabia’s industrial powerhouse. Arab News. https://www.arabnews.com/node/2596030/business-economy

[10] Arab News. (2021, December 17). Ras Al-Khair Industrial City to establish $4bn industrial complex. Arab News. https://www.arabnews.com/node/1988486/amp

[11] Arab News. (2022, February 14). South Korea’s Doosan to build $834m steel casting plant in Saudi Arabia. Arab News. https://www.arabnews.com/node/2024386/business-economy

[12] Al-Kinani, M. (2025, January 14). NMDC Energy opens advanced fabrication yard in Ras Al-Khair. Arab News. https://www.arabnews.com/node/2586371/business-economy

[13] Al-Kinani, M. (2025, February 16). Saudi Arabia’s Northern Borders region holds $1.22tn in mining resources. Arab News. https://www.arabnews.com/node/2590414/business-economy

[14] El-Shaeri, N. (2025, February 17). Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal. Arab News. https://www.arabnews.com/node/2590571/business-economy

[15] Najran exports products to over 25 countries, mines wealth worth

SAR145 billion. (n.d.). Gov.Sa. https://www.spa.gov.sa/en/N2158280

[16] Arab News. (2022a, September 20). Najran municipality signs $7m contracts for uplift projects. Arab News. https://www.arabnews.com/node/2166126/business-economy

[17] Arab News. (2023b, August 21). Saudi minister approves creation of investment firm for Najran region. Arab News. https://www.arabnews.com/node/2358756/business-economy

[18] Walid, R. (2025, June 26). Najran region’s business registrations jump 56% amid Saudi investment push. Arab News. https://www.arabnews.com/node/2605911/business-economy

[19] Hadchity, M. (2025, October 14). Saudi mineral exploration spending at double Vision 2030 goal. Arab News. https://www.arabnews.com/node/2618828/business-economy

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