Industry Minister Engages With Canadian Firms To Explore Investment Opportunities In Food And Mining Sectors

Minister of Industry and Mineral Resources, Bandar bin Ibrahim Alkhorayef, recently engaged in discussions with Canadian companies to explore opportunities for knowledge transfer and innovation. These meetings focused on sectors like food and automotive industries, aiming to attract quality investments into Saudi Arabia's mining sector. The discussions are part of the Kingdom's broader strategy to develop its national industry.

The minister's talks with Canadian mining firms centred on investment prospects in exploration, exploitation, and mineral processing within Saudi Arabia. The Kingdom is estimated to have mineral wealth worth around US$2.5 trillion. Discussions also included localising sustainable mining technologies and reviewing the objectives of the comprehensive mining strategy and national mineral program.

Alkhorayef highlighted Saudi Arabia's stable legislative environment that attracts mining companies by applying high standards of transparency and governance. The Kingdom offers a strict mining investment law alongside executive regulations. Additionally, a range of incentives is provided to facilitate business operations in the mining sector.

Meetings were held with key players such as Allied Gold Corporation, Hatch Ltd, Agnico Eagle Mines, Kinross Gold, and the Bank of Montreal (BMO). These discussions aimed at attracting Canadian investments into Saudi Arabia's mining sector. This initiative aligns with Vision 2030, which seeks to make mining the third pillar of the Kingdom's industry after oil and petrochemicals.

Saudi Arabia's geological wealth significantly attracts investors, especially in minerals. The Kingdom offers 80 years' worth of geological data through a digital platform to assist investors in making informed decisions. In 2019, Saudi Arabia revamped its mining investment law globally, improving its ranking among countries with low legal and financial risks.

The new law provides competitive incentives such as 75% joint financing for capital expenditure, five-year tax exemptions, and 100% foreign ownership. In April 2024, the Ministry announced the Exploration Empowerment Program (EEP), allocating US$182 million to reduce exploration investment risks.

Food Manufacturing Technologies

In another meeting, Alkhorayef discussed food manufacturing technologies with Max Koeune from McCain Foods Ltd. They explored transferring these technologies to Saudi Arabia and establishing a research centre to enhance local production quality. The food sector is one of the top promising industrial sectors in the national strategy aimed at enhancing food security.

Saudi Arabia has achieved significant milestones in food self-sufficiency: 100% in dairy products, 68% in poultry, and 52% in fish. The country boasts a strong industrial base with over 1,500 food factories investing more than 88 billion Saudi riyals.

Automotive Industry Advancements

The minister also met with Magna International's chief sales officer to discuss localising car technologies and electric vehicle solutions in Saudi Arabia. They explored partnerships with the Saudi National Automotive and Vehicles Academy (NAVA) for smart safety technologies and fuel efficiency improvements.

The Saudi market holds a significant position within the regional automotive industry, accounting for 40% of total sales in MENA. Last year marked the licensing of "Ceer," Saudi Arabia’s first EV brand, alongside "Lucid," an EV manufacturing facility aiming for an annual production capacity exceeding 300,000 vehicles by 2030.

The meetings are part of Alkhorayef’s official visit to Canada alongside industry leaders from both countries. This visit aims to enhance cooperation between Saudi Arabia and Canada in industrial and mining sectors while exploring mutual opportunities for foreign investments.

With inputs from SPA