Saudi Arabia poised to become global mining hub: Kearney

Igor Hock, Partner at Kearney Middle East

Saudi Arabia has strong potential to become a global mining hub as demand for critical and strategic minerals rises, said Igor Hulak, Partner at Kearney Middle East.

Speaking to Argaam at the Future Minerals Forum, he highlighted the Kingdom’s untapped resources of phosphate, gold, and copper, along with investment opportunities in zinc and lead.

The sector still relies on conventional exploration methods, which can take up to 16 years. Hulak stressed the need for AI and geospatial data analytics to speed up exploration and improve success rates.

He also pointed to Saudi Arabia’s satellite technology ambitions, which could drive future mining innovations.

With countries covering 80% of global gross domestic product (GDP) securing critical minerals, identifying opportunities is crucial. The Kingdom has its own list, including uranium and rare earth elements.

Annual reports show strong prospects for rare earth elements—key for magnets and electric vehicles—as well as lithium. Hulak noted Maaden and Aramco’s collaboration to tap lithium resources.

Saudi Arabia’s location between Europe, Asia, and Africa strengthens its position as a mining hub. The Kingdom also offers reliable, low-cost energy for processing both local and imported minerals.

On foreign investment, Hulak said Saudi Arabia’s 2021 mining law simplified licensing, attracting over 70 firms in recent rounds and improving the sector’s investment climate.

The 2023 Global Risk Report ranked Saudi Arabia as the world’s most improved mining investment destination.

Hulak concluded that Vision 2030 has created a growing economy, making the Kingdom an attractive investment hub. The strategy’s focus on 12 industrial sectors, many dependent on mining, reinforces this commitment.