Saudi Arabia’s mining sector restructuring has set the Kingdom as the fastest-growing regulatory and Investment-friendly environment in the world over the last five years, according to a report by MineHutte, a research & consultancy firm. With these measures in place, the Kingdom has risen to become the second ranked country globally in terms of friendly licensing environment.
After the adoption of the new Mining Investment Law in Saudi Arabia in 2021, permits for exploitation licenses soared 138 percent last year growing from eight to 19. This change is in line with an overall plan by the Ministry of Industry and Mineral Resources to boost mineral production and attract investment given that mineral deposits are estimated to be worth SR 9. 4 trillion in Saudi Arabia, which is about $2. 4 trillion.
Emma Beatty, the COO and research director at MineHutte, pointed out the Kingdom’s transformation of its business environment, and progress at both the regional and global levels. These improvements have been due to changes in regulatory, legislative, and infrastructural environments.
Measures of financial policy and regulatory developments The MineHutte report also discussed Saudi Arabia’s advancement in financial policies, ranking in the top 10 countries in this category. The Kingdom has enhanced the legal and institutional environment for investors making it among the best nations in the world for mining investment. This includes the comprehensive mining strategy introduced in 2018 to unlock the full potential of the country’s natural resources with policy certainty to ensure clarity, openness, and attractiveness to investors.
Citing global ranking, Khalid Al-Mudaifer, the deputy minister of industry and mineral resources for mining affairs pointed to the efforts made in the development of the sector in the last five years. The Kingdom has lately upgraded its anticipated reserves of more phosphate, gold and rare earths to $2. 5 trillion, up from $1.3 trillion (about $4,000 per person in the US) in 2016.
