Saudi Arabia Climbs To 23rd Place Globally On Fraser Institute's Investment Attractiveness Index For Mining

Saudi Arabia's mining sector has experienced significant growth, climbing from 104th in 2013 to 23rd in 2024 on the Fraser Institute's Investment Attractiveness Index. This leap positions the Kingdom as a rapidly emerging force in global mining, surpassing many well-known regions in Asia and Latin America. The Kingdom's progress reflects its stable regulatory environment and growing international confidence.

The Policy Perception Index also saw Saudi Arabia rise from 82nd place globally in 2013 to 20th in 2024. This improvement highlights the country's efforts to create a favourable investment climate through clear regulations and accessible geological data. The Kingdom's extensive geological surveys of the Arabian Shield have played a crucial role in this achievement.

Vice Minister of Industry and Mineral Resources for Mining Affairs, Eng. Khalid Al-Mudaifer, stated, "This outstanding performance reflects the structural transformation and holistic efforts being driven across the mining and mineral sector under Vision 2030." The Kingdom aims to maximise economic value from its mineral resources while creating jobs and localising supply chains.

Saudi Arabia's Best Practices Mineral Potential Index improved significantly, moving from 58th place in 2013 to 24th in 2024. This change underscores the vast untapped mineral wealth within the country, supported by ongoing geological surveys and discoveries. The Kingdom's commitment to sustainable success is evident through its focus on industrial and economic growth.

The Fraser Institute noted that Saudi Arabia's success was driven by comprehensive regulatory transformations covering tenure security, taxation, environmental legislation, infrastructure, and community engagement. These changes helped the Kingdom enter the top quartile of the index for the first time. Investors praised the Mining Exploration Enablement Program for reducing risks and boosting confidence in early-stage projects.

The report highlighted exceptional improvements in key indicators between 2013 and 2024. Notably, there was a 305.8% improvement in mining administration clarity and effectiveness, ranking Saudi Arabia 11th globally. Additionally, land use clarity for mining activities improved by 82.2%, placing it at seventh globally.

Ambitious Reforms Align with Vision 2030

The quality of geological databases saw an increase of 81.8%, rising from 33% in 2013 to 60% in 2024. Labour regulations also improved by over double their previous score, reaching a remarkable level of clarity at 91%. These advancements align with Vision 2030’s goal of diversifying Saudi Arabia’s economy by developing strategic sectors like mining.

"Our focus remains on maximizing the economic value of our mineral resources, creating jobs for citizens, and localizing supply chains," Al-Mudaifer added. "Mining is no longer a traditional sector; rather, it has become a key driver of industrial and economic growth."

The Fraser Institute’s Annual Survey of Mining Companies is a trusted benchmark for evaluating mining investment environments worldwide. It is widely used by investors, governments, and financial institutions to assess potential opportunities within various regions.

With inputs from SPA