Investors wishing to enter Saudi Arabia's mining sector can have an investment permit of up to 60 years under a new mining investment law to be issued in early 2021.

Details of the law published in the Saudi daily Almadina showed companies seeking to invest in the lucrative sector must have a minimum capital of 100,000 Saudi riyals ($26,666) and must present documents proving they have sufficient experience in the industry.

"The new law offers a licence to major investors in the mining sector of a maximum period of 60 years and 40 years to investors in small mines," the paper said.

"The new law also makes it compulsory for the investing companies to produce documents proving they have sufficient relevant experience and financial resources."

Officials said last month the new mining investment law, approved by the cabinet in mid-2019, would be enforced at the start of 2021, and aims to open up the Gulf kingdom's 5 trillion riyals ($1.3 trillion) mining and metals industry to private sector investments.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020