SAR29 Billion Projects Inaugurated in Wa’ad Al Shamal Mining City

Governor of the Northern Borders Region Prince Faisal bin Khalid bin Sultan bin Abdulaziz inaugurated development and investment projects worth SAR29 billion in Wa’ad Al Shamal Mining City on February 17, 2025. The ceremony was attended by Minister of Industry and Mineral Resources Bandar Alkhorayef, Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer, and several public and private sector officials, highlighting the Kingdom’s commitment to advancing its mining sector under Vision 2030.

Context and Background

Wa’ad Al Shamal Mining City, located in the Northern Borders Region, is a strategic industrial hub designed to integrate mining operations, logistics, and residential communities. The investment surge aligns with Saudi Arabia’s goal to triple the mining sector’s contribution to GDP by 2030, as outlined in the Kingdom’s Vision 2030. The projects inaugurated reflect a coordinated effort between government agencies and private enterprises to unlock the region’s mineral wealth.

Key Details

Prince Faisal launched construction works for Ma’aden’s Phosphate 3 project, with investments of SAR28 billion, supported by the Shareek Program. This project aims to increase Saudi Arabia’s phosphate production capacity to 9 million tons annually, adding 3 million tons from Phosphate 3 to the existing 6 million tons from Phosphate 1 and 2. The expansion will strengthen industrial supply chains and create investment and employment opportunities. Additionally, the governor inaugurated industrial, logistical, and service projects led by the Saudi Authority for Industrial Cities and Technology Zones (MODON), with investments exceeding SAR550 million. These include developing industrial infrastructure across 4.3 million square meters, constructing 32 ready-built units (20 factories and 12 support units) totaling 45,000 square meters, a 132kV power substation with 200MVA capacity, and a 7-kilometer international road link bridge. The expansion of Ma’aden’s residential complex in Wa’ad Al Shamal was also inaugurated, adding 96 residential units.

Implications and Impact

The projects are expected to significantly boost the Northern Borders Region’s economy by attracting local and international investors. Enhanced logistics and energy reliability will support transformative industries linked to phosphate production, while the residential expansion improves quality of life for workers. The initiatives also align with regional development goals, positioning Wa’ad Al Shamal as a model for integrated industrial cities.

Vision 2030 Alignment

These investments directly support Vision 2030’s objectives of diversifying the economy, increasing non-oil GDP, and creating jobs. By developing the mining sector and establishing integrated industrial zones, Saudi Arabia is building a sustainable economic future that leverages its natural resources for long-term growth.

20 Questions

Q1. Who inaugurated the investment projects in Wa’ad Al Shamal Mining City?

A1. Governor of the Northern Borders Region Prince Faisal bin Khalid bin Sultan bin Abdulaziz inaugurated the projects on February 17, 2025.

Q2. What is the total value of the investment projects inaugurated?

A2. The total investment value of the projects is SAR29 billion.

Q3. Which major project was launched as part of the inauguration?

A3. Ma’aden’s Phosphate 3 project, with investments of SAR28 billion, was launched.

Q4. What is the goal of the Phosphate 3 project?

A4. The project aims to increase Saudi Arabia’s phosphate production capacity to 9 million tons annually.

Q5. How does the Shareek Program support these projects?

A5. The Shareek Program, a government initiative, provides support to large projects to enhance private sector participation and economic growth.

Q6. Which Saudi authority led the industrial and logistical projects?

A6. The Saudi Authority for Industrial Cities and Technology Zones (MODON) led those projects.

Q7. What is the total investment in MODON-led projects?

A7. The MODON-led projects have investments exceeding SAR550 million.

Q8. How much industrial infrastructure area is being developed?

A8. Industrial infrastructure is being developed across 4.3 million square meters.

Q9. How many ready-built units are being constructed?

A9. A total of 32 ready-built units are being constructed, including 20 factories and 12 support units.

Q10. What is the capacity of the new power substation?

A10. The new power substation has a capacity of 132kV and 200MVA.

Q11. What infrastructure is being built to improve road connectivity?

A11. A 7-kilometer international road link bridge is being constructed.

Q12. How many residential units are being added to Ma’aden’s complex?

A12. The expansion adds 96 residential units across three buildings.

Q13. What is Wa’ad Al Shamal Mining City known for?

A13. It is an integrated industrial city combining major industries, logistics, and residential communities.

Q14. How does this inauguration support Vision 2030?

A14. It advances mining sector development, economic diversification, and job creation under Vision 2030.

Q15. Who is the Minister of Industry and Mineral Resources?

A15. Bandar Alkhorayef is the Minister of Industry and Mineral Resources.

Q16. What is the role of the Northern Borders Region in these projects?

A16. The region is the host and focal point for mining and industrial development.

Q17. How do these projects benefit local communities?

A17. They create employment, improve infrastructure, and enhance quality of life through residential and service developments.

Q18. What is the significance of the phosphate production increase?

A18. It strengthens Saudi Arabia’s position as a global phosphate producer and supports downstream industries.

Q19. Are there any environmental considerations in these projects?

A19. The projects follow Saudi environmental standards and aim for sustainable industrial development.

Q20. What is the long-term vision for Wa’ad Al Shamal Mining City?

A20. The city is envisioned as a world-class industrial hub that attracts investment and drives regional economic growth.

---