Saudi Arabia has unveiled a new incentive package worth nearly SR685 million ($182 million) aimed at attracting investors to the kingdom’s burgeoning mining sector.
The Ministry of Industry and Mineral Resources introduced the initiative to support mining exploration activities within the country, aligning with the objectives outlined in Vision 2030, the Saudi Press Agency reported.
Developed in collaboration with the Ministry of Investment, the incentive package is designed to mitigate risks for exploration companies, particularly during the initial stages, and encourage investment in this vital sector.
The comprehensive financial support package aims to provide assistance to companies and investors interested in exploring mineral resources in Saudi Arabia. These measures represent a significant opportunity for growth in the mining industry.
The government reiterated its commitment to prioritising investors who demonstrate a commitment to nurturing local talent and expertise, thus contributing to sustainable development within the sector.
Under the new measures, companies holding exploration licenses valid for less than five years are eligible for support of up to SR7.5 million per license, with each company able to qualify for support for up to 15 licenses, subject to program terms and conditions. Interested parties can access this opportunity through the mining platform, taadeen.sa.
The collaborative launch of this program with the Ministry of Investment is expected to expedite greenfield exploration efforts and attract investment in Saudi Arabia’s mineral sector.
According to the Ministry of Industry’s website, exploration efforts should focus on critical minerals such as copper, lithium, and rare earth elements (REE). These activities should target underexplored areas or underrepresented critical minerals, with participating investors required to possess relevant expertise and a track record in greenfield exploration. Additionally, they should commit to using local providers for services and contracts.
Saudi Arabia’s mining sector is anticipated to emerge as a key pillar of the kingdom’s industrial landscape alongside oil, gas, and petrochemicals, contributing significantly to the nation’s economic diversification efforts.