Saudi Arabia is positioning itself as a leader in the mining sector, attracting investors and unlocking its vast mineral resources.

Aligned with the goal, the kingdom is rolling out the red carpet for mining investors with a new incentive package worth nearly $182 million. 

The Ministry of Industry and Mineral Resources launched the program to support exploration activities, foster investment in the kingdom’s mineral wealth, and reduce risks for companies during the initial exploration stages, ultimately attracting more funding to the sector.

The program offers financial facilitation of up to $2 million for companies holding exploration licenses under five years old. Additionally, companies can qualify for support for up to 15 licenses, subject to program terms. Interested parties can access details and apply through the ministry’s online platform, taadeen.sa.

The incentive package comes amidst a surge in demand for mining licenses following the implementation of a new mining investment law in 2021. This law streamlined the licensing process, making it easier for domestic and international investors to enter the market.

Since the law’s introduction, the number of exploration licenses has more than doubled, jumping from 8 in 2021 to 19 in 2023. Similarly, building material quarry licenses saw a staggering 241% increase, from 158 to 538 in the same period.

This surge reflects Saudi Arabia’s strategic push to make mining a significant contributor to the national economy. The kingdom is estimated to hold a treasure trove of mineral wealth valued at $2.5 trillion, and this program aims to unlock its full potential.

The Ministry of Industry and Mineral Resources points to the Accelerated Exploration Program and reduced approval times as key drivers behind the license increase. Previously, obtaining permits could take months, but the new system has significantly streamlined the process.

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