Saudi Arabia Targets Mining Sector To Diversify Economy, Industry Minister Reveals

Saudi Arabia has established itself as a significant player in the global mining sector, according to Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef. During a roundtable on Tuesday organised by the Federation of Industries of the State of São Paulo, Alkhorayef emphasised the Kingdom's progress in developing its mining industry to diversify its national economy.

Alkhorayef stressed that mineral production is a global issue requiring international cooperation due to its role in advancing the energy transition worldwide. He noted that the Future Minerals Forum has become a key platform for discussing opportunities, challenges, and solutions within the mining sector. The minister invited Brazilian companies to join the forum's fourth edition in Riyadh in January 2025 to explore investment opportunities in Saudi Arabia's mining sector.

The minister elaborated on Saudi Arabia's National Industrial Strategy, which aims to diversify 12 key sectors and offer investment opportunities for over 800 projects worth 1 trillion Saudi Riyals. This strategy seeks to boost industrial exports and transform the Kingdom's industrial landscape towards a more prosperous future. Alkhorayef highlighted Saudi Arabia's advantages, including rich natural resources, skilled human capital, vast investment opportunities, modern infrastructure, and a business-friendly environment.

He also discussed plans to localise the pharmaceutical industry and attract top-tier investments in healthcare through various enablers and financial incentives. The goal is to enhance the healthcare sector and localise 80-90% of insulin production, positioning healthcare as a crucial pillar for economic diversification.

Alkhorayef addressed investment prospects for Brazilian companies in Saudi Arabia’s automotive sector. He described it as an emerging industry with promising potential needing comprehensive supply chains. He assured that Brazilian firms would find quality investment opportunities within this sector.

The minister expressed gratitude to the Federation of Industries of the State of São Paulo for organising the roundtable. He affirmed that discussions have reinforced confidence in potential partnerships between Saudi Arabia and Brazil. Leveraging both countries' strengths can develop robust supply chains, enhance technology exchange, and foster innovation.

Strengthening Bilateral Relations

Alkhorayef’s participation in the roundtable was part of his official economic visit to Brazil and Chile from July 22 to 30. The visit aims to enhance cooperation in industry and mining sectors between these nations. Saudi Exim Bank CEO Saad Alkhalb and several top officials from the industry and mineral wealth system also attended the event.

The minister underscored that such collaborations are vital for achieving sustainable development, establishing economic resilience, and creating opportunities for future generations. He reiterated that combining efforts from both Saudi Arabia and Brazil could significantly benefit both nations.

"The Future Minerals Forum has become the most prominent platform for discussing qualitative opportunities in the mining sector," said Alkhorayef. He invited Brazilian companies to participate in Riyadh’s forum in January 2025.

"Healthcare is an advanced pillar for economic diversification," Alkhorayef stated while highlighting efforts to localise insulin production significantly.

The minister concluded by affirming that leveraging both countries' strengths can lead to strong supply chains, technology exchange, and innovation encouragement.

With inputs from SPA