Saudi Arabia Awards Exploration Licenses for First Mineralized Belts

The Ministry of Industry and Mineral Resources announced that several local and international companies have been awarded exploration licenses for the Kingdom’s first mineralized belts at the Jabal Sayid and Al-Hajjar sites, covering a total area of 4,788 square kilometers. The announcement, made on March 19, 2025, in Riyadh, marks a significant step in Saudi Arabia’s efforts to accelerate the exploration and utilization of its mineral resources, which are estimated at SAR 9.3 trillion.

Context and Background

This initiative is part of the Ministry of Industry and Mineral Resources’ broader plan to develop the mining sector as a third pillar of the national economy alongside oil and petrochemicals. In collaboration with the Ministry of Investment, the ministry launched the second phase of the “Mining Exploration Enablement” program, designed to support exploration activities and reduce risks for companies in their early stages. The Kingdom offers various incentives under the Mining Investment Law, including allowing 100% foreign ownership of companies and providing financing of up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF). These measures are intended to create an attractive investment environment for both local and international mining companies.

Key Details

The exploration licenses cover the Jabal Sayid and Al-Hajjar sites, which are among the first mineralized belts to be offered. The Ministry announced during the fourth edition of the Future Minerals Forum in January 2025 the offering of 50,000 square kilometers of mineralized belts containing gold, copper, and zinc. Applications for these opportunities can be submitted through the “Ta’adeen” platform, which streamlines the licensing process. The awarded licenses are part of the ministry’s efforts to achieve the objectives of the overall strategy for the mining and mineral industries sector, in line with Saudi Vision 2030. The strategy aims to maximize the utilization of mineral resources and strengthen the mining sector as a key pillar of the national economy.

Implications and Impact

The awarding of these licenses is expected to boost exploration activities in the Kingdom, attracting further investment and fostering technological innovation in the mining sector. It also underscores Saudi Arabia’s commitment to diversifying its economy and reducing dependence on oil revenues. The involvement of international companies signals growing global confidence in the Kingdom’s mining potential and its regulatory framework. Moreover, the development of the mining sector is projected to create thousands of job opportunities for Saudi nationals and contribute to the growth of related industries such as logistics, manufacturing, and services. The initiative also aligns with the Kingdom’s efforts to position itself as a global hub for mining and mineral processing.

Vision 2030 Alignment

This development is a direct reflection of Saudi Vision 2030’s goal to transform the Kingdom’s economy by unlocking the value of its mineral wealth. By leveraging its vast resources and implementing investor-friendly policies, Saudi Arabia is paving the way for a sustainable and diversified future. The mining sector is set to play a pivotal role in achieving the Vision’s objectives, driving economic growth, and enhancing the Kingdom’s global competitiveness.

20 Questions

Q1. What did the Ministry of Industry and Mineral Resources announce?

A1. The Ministry announced that local and international companies have won exploration licenses for the first mineralized belts at Jabal Sayid and Al-Hajjar, covering 4,788 square kilometers.

Q2. What is the estimated value of Saudi Arabia’s mineral resources?

A2. The Kingdom’s mineral resources are estimated at SAR 9.3 trillion, highlighting the vast potential for economic diversification.

Q3. What is the “Mining Exploration Enablement” program?

A3. It is a program launched by the Ministry of Industry and Mineral Resources in collaboration with the Ministry of Investment to support exploration activities and reduce risks for companies in early stages.

Q4. What incentives does the Mining Investment Law offer?

A4. The law allows 100% foreign ownership of companies and provides financing of up to 75% of capital costs through the Saudi Industrial Development Fund (SIDF).

Q5. How many square kilometers were offered during the Future Minerals Forum?

A5. During the fourth edition of the Future Minerals Forum in January 2025, 50,000 square kilometers of mineralized belts containing gold, copper, and zinc were offered.

Q6. What is the “Ta’adeen” platform?

A6. Ta’adeen is an online platform through which companies can submit applications for exploration opportunities in the Kingdom.

Q7. Which minerals are found in the mineralized belts?

A7. The belts contain gold, copper, and zinc, which are essential for various industries and technologies.

Q8. How does this initiative align with Saudi Vision 2030?

A8. The initiative supports Vision 2030 by aiming to maximize the utilization of mineral resources and strengthen the mining sector as a key pillar of the national economy.

Q9. What is the role of the Ministry of Investment in this program?

A9. The Ministry of Investment collaborates with the Ministry of Industry and Mineral Resources to launch and support the Mining Exploration Enablement program.

Q10. How will the local economy benefit from these licenses?

A10. The licenses are expected to boost exploration activities, attract investment, create jobs, and stimulate growth in related industries such as logistics and manufacturing.

Q11. What is the significance of the Jabal Sayid and Al-Hajjar sites?

A11. These sites are among the first mineralized belts to be offered for exploration, representing a new frontier in the Kingdom’s mining sector.

Q12. How can companies apply for exploration licenses?

A12. Companies can apply through the “Ta’adeen” platform, which facilitates the application process for mining opportunities.

Q13. What is the Saudi Industrial Development Fund (SIDF)?

A13. SIDF is a government fund that provides financing for industrial projects, including up to 75% of capital costs for mining exploration companies.

Q14. What are the goals of the overall strategy for the mining and mineral industries sector?

A14. The strategy aims to maximize the utilization of mineral resources, diversify the economy, and establish mining as a key pillar of the national economy.

Q15. How does this announcement affect international mining companies?

A15. It opens opportunities for international companies to invest in Saudi Arabia’s mining sector, with incentives such as full foreign ownership and financial support.

Q16. What is the expected timeline for exploration activities?

A16. The timeline depends on the companies’ plans, but the licenses allow for immediate commencement of exploration activities in the designated areas.

Q17. What is the Future Minerals Forum?

A17. The Future Minerals Forum is an annual event hosted by Saudi Arabia that brings together global leaders in mining to discuss industry trends and opportunities.

Q18. How does mining contribute to Saudi Arabia’s economic diversification?

A18. Mining reduces reliance on oil by creating new revenue streams, generating employment, and fostering innovation in related sectors.

Q19. What environmental considerations are in place for mining exploration?

A19. The Ministry ensures that exploration activities comply with environmental regulations and sustainable practices to minimize ecological impact.

Q20. What is the next step after awarding these exploration licenses?

A20. Companies will begin exploration work, and the Ministry will continue to offer more mineralized belts to further develop the sector.

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