Saudi Mining Sector Reports SAR1.05 Billion In Exploration Spending For 2024 Amid Growing Investor Confidence

Saudi Arabia's Ministry of Industry and Mineral Resources (MIM) reported a significant rise in exploration spending, which increased fivefold over four years. By 2024, the expenditure reached SAR1.05 billion ($280.5 million), up from SAR501 million ($133.5 million) in 2023 and SAR205 million ($55 million) in 2020. This surge is attributed to private-sector investment, expanded geological surveys, and regulatory reforms.

The Kingdom's mining sector has seen rapid growth, aligning with Saudi Vision 2030 goals that position mining as a key economic pillar. In 2024, private-sector spending on exploration licenses soared by 164%, reaching SAR770 million ($205 million) compared to SAR155 million ($41.3 million) in 2020. Government spending on geological programs also rose significantly from SAR11 million ($2.9 million) in 2020 to SAR180 million ($48 million) in 2024.

Saudi Arabia's mining sector is gaining global attention, with the number of active exploration companies rising from six in 2020 to 226 in 2024. This increase reflects growing investor confidence and the involvement of top-tier local and international firms. "Saudi Arabia’s mining sector is entering a new phase of accelerated growth and maturity," stated Eng. Khalid Al-Mudaifer, Vice Minister for Mining Affairs.

Exploration spending per square kilometer grew from SAR105 ($28) in 2020 to SAR539 ($143.7) in 2024, elevating the Kingdom's global ranking from 20th to 12th place. This represents a compound annual growth rate of 50%, one of the highest worldwide. Over 70% of total exploration spending focused on grassroots projects in new areas.

The Kingdom attracted strong interest from global mining companies, with foreign investors making up 66% of total mining investment. Committed exploration spending across eight tender rounds reached SAR1.2 billion ($320 million), with two-thirds of participants being foreign or consortium bidders from countries like Australia, Canada, China, India, Indonesia, and the UK.

The number of auctioned sites increased from one site during the first auction round in 2022 to 29 sites this year. The Kingdom's mineral resource base includes 933 exploration locations at various stages of development, comprising gold and associated minerals as well as base metals like zinc and copper.

Sector Achievements and Future Prospects

Preliminary estimates suggest mineral potential amounts to approximately 67 million ounces of gold, along with significant quantities of copper and zinc. These figures highlight the richness of Saudi Arabia’s mineral sector and its potential role in global supply chains for clean energy industries.

The Fraser Institute's report for 2024 noted Saudi Arabia's leap in investment attractiveness, advancing from 104th to 23rd place globally over the past decade. The Kingdom ranked first globally for improvement pace in its investment environment (2018–2023), second worldwide for mineral licensing policy perception index, and entered the top ten countries for mining fiscal policy.

This progress reflects international confidence in Saudi Arabia’s investment environment as it emerges as a rising power in the global mining sector.

With inputs from SPA