The National Minerals Programme: Saudi Arabia's New Bet

In a determined effort to diversify its economy beyond oil, Saudi Arabia has launched the "National Minerals Programme", an ambitious project under the jurisdiction of the Ministry of Industry and Mineral Resources. The initiative was approved at a recent session of the Council of Ministers, chaired by Crown Prince Mohammed bin Salman. 

This programme aims to meet growing local and international demands for minerals, strengthen local capabilities and contribute significantly to exploration operations. Industry Minister Bandar Al-Khorayef stressed that this initiative will mark a qualitative shift in supporting supply chains in the industrial and mining sectors, elevating Saudi Arabia as a regional and global hub in the field of mining and minerals. 

As reported by Al Arab, the National Minerals Programme seeks to ensure the quality and sufficiency of current and future mineral supply chains. In addition, it will focus on developing and managing strategic mineral reserves, identifying and securing the country's mineral needs, and providing industrial supplies of mineral raw materials, ensuring their continuity. 

In an effort to attract foreign investment, the Saudi authorities have created a comprehensive digital platform that facilitates access to all necessary services for mining investors. In addition, significant incentives are offered, such as co-financing of up to 75% of any new investment and discounts of up to 90% on sales of local manufacturing projects. 

The mining sector, ranked as the third pillar of industry alongside oil, gas and petrochemicals, has experienced accelerated growth over the past five years. According to the Global Investment Risk Assessment for the sector, Saudi Arabia has recorded the fastest growth in the world over this period. In June, the Ministry of Industry announced that six companies won the country's largest mineral exploration competition, covering a total area of up to 1,000 square kilometres.

In addition, Saudi Geological Survey is collaborating with technologically advanced countries such as China, Finland, South Africa and France to carry out geological survey operations that will increase efficiency and reliability, thereby attracting more investors. 

Moreover, in January, Saudi Arabia raised its estimate of untapped mineral wealth potential from 1.3 trillion dollars to 2.5 trillion dollars, an increase of 90%. This increase is attributed to recent surveys that revealed additional quantities of phosphate, gold, zinc and copper, as well as the discovery of critical minerals for various industries. 

Phosphate constitutes a quarter of the country's mineral resources, making Saudi Arabia the world's fifth largest producer of phosphate fertilisers and second in phosphate industry expertise. By the end of the current decade, the government aims to increase the mining sector's contribution to GDP to 80 billion dollars, up from the previously estimated 64 billion dollars. 

The kingdom, whose economy has historically relied on oil, is investing billions of dollars in transforming itself into a hub for electric vehicles and other non-oil based industries. Maaden, the Gulf region's largest mining company, is at the forefront of these efforts, extracting lithium from seawater, a process that requires advanced technologies and considerable investment. 

With these initiatives, Saudi Arabia is not only seeking to diversify its economy, but also to establish itself as a global leader in the mining sector, attracting investment and developing local capabilities.