en.Wedoany.com Report on Mar 21st, Saudi Arabia is driving economic diversification through a mining transformation to reduce its reliance on hydrocarbons. According to the "Vision 2030" plan, the country aims to increase the mining sector's contribution to GDP to $63 billion, create 200,000 jobs, and attract $27 billion in new investments. Saudi Arabia possesses mineral reserves worth $2.5 trillion, encompassing over 45 resources including gold, copper, and rare earth elements.
Economist Talat Hafiz noted: "Saudi Arabia's geographical location enables it to integrate advantages in mining, processing, and logistics." Situated between Africa, Europe, and Asia, the Kingdom leverages existing infrastructure to reduce development costs and supports energy-intensive processing through its renewable energy potential.
Regulatory reforms have enhanced investment attractiveness. The corporate income tax rate has been reduced from 45% to 20%, and a digital licensing platform has streamlined the approval process. From 2022 to 2025, the mining exploration budget increased by 600%, from $21 million to $146 million, with over 2,000 licenses issued.
Progress has been made in developing key minerals. Phosphate fertilizer exports reached 5.7 million tons in 2024, a 6% increase compared to 2023. Khalid Al-Mudaifer, Deputy Minister for Mining Affairs in the Ministry of Industry and Mineral Resources, stated: "The Jabal Sayid site northeast of Jeddah is one of the world's top four rare earth element resources." Copper and battery mineral exploration also shows potential.
The mining transformation is generating broader economic impact. Turki Al-Nahari, Global Mining Vice President at Ecolab, explained: "When the mining sector expands, growth extends to areas like engineering, logistics, and environmental services." The Kingdom has standardized over 500 job roles to support workforce development.
Saudi Arabia's mining development pipeline includes 24 exploration projects and 17 advanced development projects. Manraj Lamba, Mining Economics Analyst at S&P Global, noted in a research report: "Ongoing geological surveys and higher development budgets are attracting foreign investment." Early performance indicators suggest the mining strategy is achieving its economic diversification goals.
