Saudi Minister Discusses Food, Auto, Mining with Canadian Firms

Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef held a series of bilateral meetings with leading Canadian companies in Riyadh on October 3, 2024, to explore knowledge transfer and innovation opportunities in the food, automotive, and mining sectors. The meetings, attended by leaders from the industry and mineral resources sector, focused on promising fields that contribute to the development of the national industry strategy, including attracting quality investments to the Saudi mining sector.

Context and Background

The meetings come as part of Saudi Arabia’s ambitious efforts to develop its mining sector and achieve the goals of Vision 2030, aiming to make mining the third pillar of the Kingdom’s industry after oil and petrochemicals. The Kingdom possesses mineral wealth estimated at around US$2.5 trillion, and has taken significant steps to attract foreign investment, including revamping its mining investment law in 2019 to align with global standards.

Minister Alkhorayef highlighted the key elements of the investment climate in the Kingdom, which attracts mining companies with a stable legislative environment applying the highest standards of transparency and governance, and a strict mining investment law and its executive regulations. He also shed light on the package of potentials and incentives provided by the Kingdom to investors, facilitating their business operations in the mining sector.

Key Details

During the meetings, Minister Alkhorayef held discussions with Allied Gold Corporation, a prominent player in mineral exploration; Hatch Ltd, specializing in technical consulting and mining services; and Agnico Eagle Mines, a global leader in mining and the world’s third-largest gold producer. He also met with officials from Kinross Gold mining company as well as the asset management team at the Bank of Montreal (BMO) to discuss opportunities for attracting Canadian companies to invest in the Saudi mining sector.

The talks with Canadian mining companies focused on investment opportunities in exploration, exploitation, and mineral processing in the Kingdom, as well as the localization of the latest responsible and sustainable mining technologies. The minister reviewed the objectives of the comprehensive mining strategy and the national mineral program.

On the food industry front, Alkhorayef met with Max Koeune, the chief executive of McCain Foods Ltd, a globally leading frozen food company. They discussed the transfer and localization of the latest food manufacturing technologies and opportunities to establish a research and development center in Saudi Arabia to enhance the quality of local production. The food sector is one of the top 12 promising industrial sectors in the national industry strategy, with the aim of enhancing food security. The Kingdom has achieved important milestones in supporting its food self-sufficiency, with 100% self-sufficiency in dairy products, 68% in poultry, and 52% in fish. Saudi Arabia possesses a strong industrial base comprising 1,500 food factories with investments exceeding 88 billion Saudi riyals.

In the automotive sector, Alkhorayef met with the chief sales and marketing officer of Magna International, a prominent player in the automotive technology sector, to discuss opportunities for localizing the latest car technologies, electric-vehicle (EV) solutions in the Kingdom, smart safety technologies, and fuel efficiency improvements. They discussed effective partnership with the Saudi National Automotive and Vehicles Academy (NAVA). The Kingdom is dedicated to advancing the automotive industry by fostering the transfer of knowledge, innovative solutions, and advanced technologies necessary for its growth and development. The Saudi market holds a significant position within the automotive industry in the region, accounting for 40% of total sales in the Middle East and North Africa. Last year saw the licensing of the inaugural Saudi EV brand, “Ceer,” and the inauguration of the Kingdom’s first EV manufacturing facility, “Lucid,” with plans to achieve an annual production capacity exceeding 300,000 vehicles by 2030.

Implications and Impact

The meetings with major Canadian mining and manufacturing companies are part of Alkhorayef’s official visit to Canada alongside industry and mining leaders. The visit aims to enhance industrial and mining cooperation between both countries, explore mutual opportunities in these two sectors, and attract foreign investments to the Kingdom. The Kingdom significantly improved its ranking in terms of mitigating mining investment risks from 2018 to 2023, becoming one of the top 10 countries with the lowest legal and financial risks, according to a report by the Global Mining Journal in 2023. Moreover, the new mining investment law offers various competitive incentives, including 75% joint financing for capital expenditure, tax exemptions for five years, and 100% foreign ownership. In April 2024, the Ministry of Industry and Mineral Resources announced the Exploration Empowerment Program (EEP) allocating US$182 million to reduce investment risks in exploration, accelerate innovative exploration, and achieve key objectives in the mining sector in the Kingdom.

Vision 2030 Alignment

These developments are closely aligned with Saudi Arabia’s Vision 2030, which seeks to diversify the economy and reduce dependence on oil. By attracting foreign investment and localizing advanced technologies in mining, food, and automotive sectors, the Kingdom is building a sustainable and innovative industrial base that will create jobs, enhance food security, and position Saudi Arabia as a global leader in these strategic industries. The meetings with Canadian companies underscore the Kingdom’s commitment to international collaboration and its determination to achieve the ambitious goals of Vision 2030.

20 Questions

Q1. What was the purpose of Minister Alkhorayef’s meetings with Canadian companies?

A1. The meetings aimed to explore knowledge transfer and innovation opportunities in the food, automotive, and mining sectors, and to attract quality investments to Saudi Arabia’s mining sector.

Q2. Which Canadian mining companies did Minister Alkhorayef meet with?

A2. He met with Allied Gold Corporation, Hatch Ltd, Agnico Eagle Mines, Kinross Gold, and the Bank of Montreal (BMO) asset management team.

Q3. What is the estimated value of Saudi Arabia’s mineral wealth?

A3. Saudi Arabia’s mineral wealth is estimated at around US$2.5 trillion, according to official sources.

Q4. What incentives does Saudi Arabia offer to mining investors?

A4. Incentives include 75% joint financing for capital expenditure, tax exemptions for five years, and 100% foreign ownership under the new mining investment law.

Q5. What is the Exploration Empowerment Program (EEP)?

A5. The EEP is a program allocating US$182 million to reduce investment risks in exploration, accelerate innovative exploration, and achieve key objectives in the mining sector.

Q6. How did Saudi Arabia’s mining investment risk ranking improve?

A6. Saudi Arabia improved its ranking from 2018 to 2023, becoming one of the top 10 countries with the lowest legal and financial risks, according to the Global Mining Journal.

Q7. What food company did Minister Alkhorayef meet with?

A7. He met with Max Koeune, chief executive of McCain Foods Ltd, a globally leading frozen food company.

Q8. What was discussed regarding the food industry?

A8. They discussed transfer and localization of latest food manufacturing technologies and establishing a research and development center in Saudi Arabia to enhance local production quality.

Q9. What are Saudi Arabia’s self-sufficiency rates in food products?

A9. The Kingdom has achieved 100% self-sufficiency in dairy products, 68% in poultry, and 52% in fish.

Q10. How many food factories exist in Saudi Arabia?

A10. Saudi Arabia has 1,500 food factories with investments exceeding 88 billion Saudi riyals.

Q11. Which automotive company did Minister Alkhorayef meet with?

A11. He met with the chief sales and marketing officer of Magna International, a prominent player in automotive technology.

Q12. What automotive topics were discussed?

A12. They discussed localizing latest car technologies, electric-vehicle solutions, smart safety technologies, fuel efficiency improvements, and partnership with the Saudi National Automotive and Vehicles Academy (NAVA).

Q13. What is Saudi Arabia’s share of automotive sales in the MENA region?

A13. Saudi Arabia accounts for 40% of total automotive sales in the Middle East and North Africa.

Q14. What recent developments occurred in Saudi Arabia’s EV industry?

A14. Last year saw the licensing of the inaugural Saudi EV brand, “Ceer,” and the inauguration of the Kingdom’s first EV manufacturing facility, “Lucid.”

Q15. What is Saudi Arabia’s planned annual EV production capacity by 2030?

A15. The Kingdom plans to achieve an annual production capacity exceeding 300,000 vehicles by 2030.

Q16. What is the national industry strategy’s goal for the mining sector?

A16. The strategy aims to make mining the third pillar of Saudi Arabia’s industry after oil and petrochemicals, contributing to economic diversification.

Q17. How does Saudi Arabia support investors with geological data?

A17. The Kingdom provides 80 years of geological data accessible through a digital platform to help investors make informed decisions.

Q18. What was the outcome of Minister Alkhorayef’s visit to Canada?

A18. The visit aimed to enhance industrial and mining cooperation, explore mutual opportunities, and attract foreign investments to Saudi Arabia.

Q19. How do these meetings align with Vision 2030?

A19. They support Vision 2030’s goals of economic diversification, technology localization, job creation, and positioning Saudi Arabia as a global leader in strategic industries.

Q20. What role does the food sector play in Saudi Arabia’s national industry strategy?

A20. The food sector is one of the top 12 promising industrial sectors, aimed at enhancing food security and local production capabilities.

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