Saudi Arabia has rapidly ascended global mining hotspot rankings as reforms, higher exploration spending and government-led infrastructure support reshape the Kingdom’s mining sector, according to a senior government official.

The Kingdom vaulted from 104th place in 2013 to 23rd in 2024 in the Mining Investment Attractiveness Index of Fraser Institute’s Annual Survey of Mining Companies 2024, Khalid Al-Mudaifer, Vice Minister of Industry and Mineral Resources for Mining Affairs said at the Future Minerals Forum in Riyadh.

He noted the rising demand for base metals essential to the energy transition, such as aluminium, copper and iron, and for critical minerals including rare earths, lithium, tungsten and tin is increasing pressure on global supply chains.

These minerals, he noted, are increasingly used in advanced industries such as engines, aircraft, computers, artificial intelligence and digital technologies, making them more strategically important than ever.

He added that price volatility and the relatively small size of some critical mineral markets increase investment risk for private companies, underscoring the need for government intervention through infrastructure provision and innovative financing tools.

Saudi Arabia has more than doubled mining exploration spending over the past five years, Al-Mudaifer said, rising from less than 28 Saudi riyals per square kilometre (sq.km) in 2020 to SAR 105/sq.km in 2024, to SAR 144/sq.km in 2025.

The Kingdom’s mining strategy, launched in 2018, aims to move beyond extraction to build an integrated mining ecosystem encompassing exploration, processing, innovation, recycling and workforce development, he said.

Al-Mudaifer said Saudi Arabia has successfully replicated its oil and petrochemicals partnership model in mining, positioning the Kingdom to become a global hub for mining innovation, technologies and venture capital.

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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