Saudi Arabia to invest $32m in mining incentives to drive industry expansion

Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that financial support for the sector will continue to increase.
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Updated 16 January 2025
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Saudi Arabia to invest $32m in mining incentives to drive industry expansion

RIYADH: Saudi Arabia is poised to invest SR120 million ($32 million) this year in mining incentives aimed at supporting companies with the right technical expertise, the country’s deputy minister announced.

On the third and final day of the Future Minerals Forum, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that financial support for the sector will continue to increase.

“Last year, we injected about SR70 million via the exploration enablement program for six companies, and this year we’re working on launching SR120 million worth of incentives to be distributed to companies that have the right technical expertise,” he said during a panel discussion.

This initiative is part of Saudi Arabia’s broader strategy to develop its mining sector and accelerate project timelines. “Our focus today is to accelerate the duration from the start of exploration all the way to the production of a mine,” Al-Belushi added.

He also emphasized the government’s commitment to providing essential resources for mining companies. “We’ve been busy listening to explorers and miners in the Kingdom and around the world. We gathered three components or three critical elements that are important to their success. They always want lands, they want data, and they want financing.”

To further strengthen the industry, Saudi Arabia has been heavily investing in geological research and exploration. “We’ve been working on the regional geosciences program, and that is nearing completion, and we will start off with the detailed mapping program that should be completed by 2030,” Al-Belushi explained.

He also highlighted the value of private sector contributions: “The private sector data is much more valuable, and now we’re trying to add the private sector data to the national geological database.”

Over the past five years, SR1.3 billion has been invested in exploration, generating a wealth of geological knowledge. “That’s a wealth of geological knowledge that should be in our geological database,” he added.

The Saudi government is also preparing to allocate significant land areas for future mining projects.

“We’ve been working actively on generating the data rules, availing 50,000 sq. km worth of lands for tendering in 2025 — this is the size of a small country,” Al-Belushi said.

Industry leaders expressed strong confidence in the future of the mining sector. “My confidence in the mining sector is 10 out of 10,” said Suliman Al-Othaim, chairman of Saudi Gold Refinery.

He described Saudi Arabia’s mining potential as unparalleled.

“We do have the minerals, which is a golden opportunity. We are in a world of paradise in Saudi Arabia because we have the minerals, we have the infrastructure, we have the electricity, we have the support of the government,” he said, predicting, “We will see tremendous growth within the coming five years.”

Darryl Clark, executive vice president of exploration at Ma’aden, highlighted Saudi Arabia’s unique geological features. “What I observe, and what I see here in Saudi Arabia that gets me very excited are a couple of unique geological features,” he said.

He elaborated, noting, “Saudi Arabia, geologically speaking, is broken up into two big chunks. On the western side, we have the shield, and on the eastern side, we have the platform rocks.”

Public support and sustainability were also central topics during the forum. Geoffrey McDonald Day, CEO of AMAK, stressed the importance of societal backing for the mining industry’s long-term success.

“I think how we maintain societal support for the mining industry is going to be a key thing for the sustainable success of the mining industry,” he said. He also underscored the importance of innovation, stating, “I think the ability to transform and value-add from technology is limited by our own imagination.”

Abdulaziz Al-Hamwah, vice chairman and CEO of Modern Industrial Investment Holding Group, linked the transformation of the mining sector to Saudi Vision 2030. “The mining sector today is in a better position. Why? Because of Vision 2030,” he said.

Al-Hamwah also pointed out that Saudi Arabia’s global leadership in oil, gas, and petrochemicals serves as a blueprint for its mining ambitions.

“Saudi Arabia’s transformation, as one of the global leaders in oil and gas and petrochemicals, profiles a compelling blueprint for the mining sector,” he noted.


Saudi Arabia surpasses $1bn sukuk milestone with May issuance

Updated 20 May 2025
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Saudi Arabia surpasses $1bn sukuk milestone with May issuance

RIYADH: Saudi Arabia’s National Debt Management Center has surpassed the $1 billion threshold in its latest sukuk issuance, raising SR4.08 billion ($1.08 billion) in May through riyal-denominated offerings.

This marks a 9.09 percent increase from April and reflects a significant 54.5 percent rise compared to March, when SR2.64 billion was raised.

The May issuance continues the Kingdom’s strong momentum in the domestic debt market, following SR3.72 billion raised in January and SR3.07 billion in February. The consistent monthly issuances highlight growing investor interest in Shariah-compliant fixed-income instruments, as global financial markets adjust to a higher interest rate environment.

Sukuk, the Islamic equivalent of bonds, are structured to comply with Shariah principles, which prohibit interest-based transactions.

Instead, investors receive returns derived from partial ownership in tangible assets or investment activities, aligning with Islamic finance ethics.

According to the NDMC, the May offering was divided into four tranches. The first tranche amounted to SR489 million and is set to mature in 2029. The second was valued at SR1.004 billion and will mature in 2032. The third tranche, totaling SR1.28 billion, is due in 2036, while the largest portion of the issuance, worth SR1.3 billion, will mature in 2039.

Saudi Arabia’s debt market has seen rapid growth in recent years, as domestic and international investors seek diversification and stable returns. A report released in April by the Kuwait Financial Center, also known as Markaz, noted that Saudi Arabia led the Gulf Cooperation Council’s debt market in the first quarter of 2025. The Kingdom accounted for 60.2 percent of all primary debt issuances in the region, raising $31.01 billion across 41 offerings.

In a broader outlook, S&P Global highlighted Saudi Arabia’s expanding non-oil economy and robust sukuk activity as key drivers of growth for the global Islamic finance sector.

The credit rating agency forecast global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign-currency issuances potentially totaling up to $80 billion, assuming stable market conditions.

Furthermore, a December 2024 report by Kamco Invest projected that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, approximately $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s dominant position in the region’s debt landscape.


Closing Bell: Saudi main index closes in green at 11,438

Updated 20 May 2025
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Closing Bell: Saudi main index closes in green at 11,438

  • MSCI Tadawul Index increased by 0.40 points, to close at 1,460.79
  • Parallel market Nomu rose 28.91 points, to end at 27,528.56

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 32.90 points, or 0.29 percent, to close at 11,438.18.

The total trading turnover of the benchmark index was SR4.85 billion ($1.29 billion), as 132 of the listed stocks advanced, while only 106 retreated.

The MSCI Tadawul Index increased by 0.40 points, or 5.86 percent, to close at 1,460.79.

The Kingdom’s parallel market Nomu rose, gaining 28.91 points, or 0.11 percent, to end at 27,528.56. This comes as 31 of the listed stocks advanced, while 42 retreated.

The best-performing stock was MBC Group Co., with its share price surging by 6.01 percent to SR45.

Other top performers included National Gypsum Co., which saw its share price rise by 4.49 percent to SR21.42, and Zamil Industrial Investment Co., which saw a 4.19 percent increase to SR46.05.

The worst performer of the day was Etihad Atheeb Telecommunication Co., whose share price fell by 4.55 percent to SR100.80.

Saudia Dairy and Foodstuff Co. and CHUBB Arabia Cooperative Insurance Co. also saw declines, with their shares dropping by 2.66 percent and 2.53 percent to SR285 and SR36.60, respectively.

On the announcements front, Alinma Bank has confirmed the commencement of its offering of US dollar-denominated Sustainable Additional Tier 1 Capital Certificates under its Additional Tier 1 Capital Certificate Issuance Program. 

The offering, which began on May 20, is directed at eligible investors in the Kingdom and internationally, according to a Tadawul statement. The certificates, with a minimum subscription of $200,000, are perpetual and callable after 5.5 years, with terms and pricing subject to market conditions. 

The statement added that the certificates will be listed on the London Stock Exchange’s International Securities Market.

In today’s trading session, ALINMA’s share price traded 0.55 percent higher on the main market to reach SR27.55.

Moreover, Asas Makeen Real Estate Development and Investment Co. continued receiving subscription requests for 1 million ordinary shares, equivalent to 10 percent of its capital, at a price of SR80 per share. The offering, approved by the Capital Market Authority, runs from May 19 to 25 on the Nomu parallel market. The company aims to expand its investor base and attract capital to support sustainable growth, with its managed projects exceeding SR3.75 billion in value. 

Meanwhile, Al-Khozama Investment Co. is accepting subscription requests for 422,400 ordinary shares, which is equivalent to 10.71 percent of its shares on Nomu until May 22, priced between SR99 and SR107 per share. The offering targets qualified investors and supports the company’s long-term expansion in Saudi Arabia’s hospitality and food and beverage sector. 


Saudi Arabia’s EV push signals long-term investment strategy: Alkhorayef

Updated 20 May 2025
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Saudi Arabia’s EV push signals long-term investment strategy: Alkhorayef

  • Minister of Industry and Mineral Resources was speaking during a panel discussion at the Qatar Economic Forum
  • He highlighted mining as a strategic sector, saying the Kingdom has significantly reformed its regulatory framework

RIYADH: Saudi Arabia’s investment in electric vehicles reflects how the Kingdom is shaping its future through strategic, long-term bets, according to a senior minister.  

Speaking during a panel discussion at the Qatar Economic Forum in Doha, Minister of Industry and Mineral Resources Bandar Alkhorayef stated that Saudi Arabia’s push toward EV manufacturing demonstrates the Kingdom’s commitment to shaping a modern and sustainable economy. 

His comments come as Saudi Arabia ramps up efforts to position itself as a regional hub for automotive manufacturing, particularly in electric vehicles. Backed by the Public Investment Fund, the Kingdom has invested in ventures such as US-based Lucid Motors, which is building a production facility in King Abdullah Economic City.  

As part of its broader diversification drive, Saudi Arabia aims to produce over 300,000 vehicles annually by 2030. 

“Betting on EVs is also showing you how we think as a country. We are investing in the future,” he said.  

He added: “Automotive is a sector that we have been waiting to attract for many years, that our vision is a great enabler that brought the sector to Saudi. We are the largest country exporting cars with no local manufacturing, and I think it's the right move.”  

Alkhorayef emphasized that the Kingdom’s economic transformation under Vision 2030 centers on diversification, with mining and industrial development playing a key role in that shift.  

“In our vision — Saudi Vision 2030 — diversification of our economy is key, and definitely mining and industry are both areas where we can see great opportunities,” he said.  

Discussing the Kingdom’s execution capabilities, the minister said Saudi Arabia has mastered “the art of execution,” stressing that successful implementation of plans, not just strategy, is what builds investor confidence.  

He highlighted mining as a strategic sector, noting that the country has significantly reformed its regulatory framework.  

“We have been able to introduce, I would claim, one of the best — if not the best — mining investment laws globally… We have been able to reduce the licensing time from the global average of three to five years to six months,” Alkhorayef said.   

Touching on global mineral demand, he said: “We are actually in a race with time to ensure that we have the right quantities of minerals and metals to satisfy the global need in energy transition, in automation, in technology, and in defense.” 

The minister pointed to the Future Minerals Forum hosted by the Kingdom as a critical platform to address such challenges, uniting governments, private sector players, and financial institutions to improve exploration, refining, and supply chain resilience.  

On supply chains and national resilience, Alkhorayef explained that Saudi Arabia’s localization strategy goes beyond national security.  

“It is really capturing a new value. Today in manufacturing, scale is becoming less important because of new technologies that are being introduced,” he said. 

Alkhorayef continued: “Today in manufacturing, in mining, and in many of the sectors we intend to build in Saudi, are all built on new technologies. How can we ensure that while we are growing our economy, we are creating the right jobs for our people?” 

Addressing the role of governments in enabling private sector growth, Alkhorayef stressed the need for proactive governance.  

“Without government really helping the private sector to capture different value, it would be very hard to see the growth in the private sector,” he said, stressing the importance of infrastructure, regulation, and digital security in encouraging investment. 

He concluded by highlighting the Kingdom’s export achievements: “Last year is a great demonstration of the growth we have done. 2024 was the record high export of Saudi Arabia. Non-oil export — we grew from 16 percent contribution in non-oil export to 25 percent contribution to our GDP in non-oil export. The non-oil, non-petrochemical growth of exports was 9 percent last year,” he said.  


Saudi capital market institutions see 29.6% revenue growth in 2024

Updated 20 May 2025
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Saudi capital market institutions see 29.6% revenue growth in 2024

  • Number of licensed institutions increased to 186
  • CMA report highlights sector’s alignment with Vision 2030’s Financial Sector Development Program

RIYADH: Capital market institutions in Saudi Arabia posted a strong financial performance in 2024, with revenues surging by 29.6 percent to SR17 billion ($4.5 billion) and profits rising 39.3 percent to SR8.8 billion, according to the Capital Market Authority’s annual report.

The number of licensed institutions expanded to 186, reflecting both increased operational capacity and rising demand for services across the sector.

This solid performance was supported by a series of regulatory reforms introduced by the CMA throughout the year. Key updates included amendments to the Capital Market Institutions Regulations, the Investment Account Instructions, and the Implementing Regulation of the Companies Law for Listed Joint Stock Companies.

The authority also launched new guidelines for the Offering of Real Estate Contributions Certificates, establishing a regulatory framework to facilitate the registration and issuance of these investment instruments.

The report highlights the sector’s alignment with Vision 2030’s Financial Sector Development Program, which aims to strengthen financial institutions’ roles in supporting private sector growth and national economic diversification.

The growth in the number of licensed entities — and their improved financial results — signals a more resilient financial ecosystem capable of backing major national projects and private enterprise.

Investor protection remained a priority. In 2024, the CMA resolved 121 cases, awarding over SR389 million in compensation to 921 affected investors. The average litigation period dropped from 5.5 months in 2023 to 4.4 months, marking a significant improvement in dispute resolution efficiency.

Enforcement activity also intensified, with 171 violators receiving enforceable decisions and 45 enforcement requests actively pursued.

CMA Chairman Mohammed El-Kuwaiz said that the authority’s strategic plan for 2024-26 centers on enhancing the capital market’s ability to finance growth, strengthening institutional governance, and safeguarding investor rights.

He noted that the plan was shaped through stakeholder engagement and a comprehensive market analysis, in line with the broader Vision 2030 agenda.


Strong fiscal frameworks position Saudi Arabia to weather oil price swings, says minister

Updated 20 May 2025
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Strong fiscal frameworks position Saudi Arabia to weather oil price swings, says minister

  • Minister of economy and planning said Kingdom has built resilient economic structures to adapt to multiple oil price scenarios
  • Faisal Alibrahim said the Saudi budgets are no longer driven by oil

RIYADH: Saudi Arabia is well-prepared to handle fluctuations in global oil prices, thanks to its strong fiscal planning frameworks, according to the Kingdom’s Minister of Economy and Planning, Faisal Alibrahim.

Speaking at the Qatar Economic Forum during a panel discussion titled “The Geoeconomics of Growth: Finance & Economy Minister Outlook,” Alibrahim said Saudi Arabia has built resilient economic structures designed to adapt to multiple oil price scenarios.

The comments come as oil-producing nations continue to navigate price volatility amid shifting global demand and energy transition efforts.

“We’re always ready for scenarios, multiple scenarios, and we have the buffers. We have the long-term fiscal planning and medium-term frameworks that help us adjust depending on what scenario actually plays out,” the minister said. 

The world’s largest oil exporter is accelerating its economic diversification under the Vision 2030 reform agenda. Non-oil exports surged to a record $137 billion in 2024 — a 113 percent increase since the initiative was launched in 2016.

According to data from the Ministry of Finance, non-oil revenues accounted for 43.1 percent of total government income in the first quarter of 2025, representing a 2.06 percent increase compared to the same period last year.

Alibrahim noted that the Saudi budgets are no longer driven by oil. “Today, they’re driven by our priorities,” he added. “On the energy markets and oil, we’ve always been solving for long-term market stability that guarantees that investments will continue to flow to provide the right kind of supply that the global economy needs, and of course, as part of that is OPEC+ discipline.” 

The minister noted that Gulf Cooperation Council countries, including Saudi Arabia, are prioritizing long-term growth over short-term gains. “We’re always thinking about not the next 12 months, but a longer-term horizon, and that’s what most of the GCC countries are doing as well,” he added.   

Alibrahim also underscored Saudi Arabia’s commitment to Vision 2030 and beyond, stating that Gulf nations are undergoing similar transformations. “What we’re undertaking in Vision 2030 and beyond Vision 2030 is a long-term, big-picture plan that is all about restructuring the Saudi economy,” he said.   

Highlighting the region’s economic progress, the minister pointed out that non-oil economies in the GCC grew by 3.7 percent in 2024 — nearly double the global growth rate. “There’s an acknowledgement that we’ve been for a while operating below our potential,” he said, emphasizing the increasing opportunities from economic restructuring.   

On foreign investment, Alibrahim described it as a “long-term game,” with Saudi Arabia targeting FDI inflows worth 5.7 percent of the gross domestic product by 2030. The Kingdom has implemented over 900 reforms to improve its business environment, he noted. 

Alibrahim also referenced recent geopolitical developments, including US President Donald Trump’s recent visit to Riyadh — part of a broader push for regional dialogue.

“We saw President Trump in Riyadh last week. We saw the result of dialogue, what it led to, including lifting the sanctions on Syria,” he said, signaling growing momentum for economic reintegration. 

On May 13, Trump began his four-day trip to the Middle East, his first major international visit of his second term. His first stop was Saudi Arabia, where he secured a $600 billion investment commitment from the Kingdom. During his speech at the Saudi-US Investment Forum, Trump announced the lifting of US sanctions on Syria following talks with Crown Prince Mohammed bin Salman. 

The discussion shifted to Syria’s role in regional stability, with Turkish Finance Minister Mehmet Simsek stating: “Having a stable, peaceful, and prospering Syria on its own is a huge gain for the region.” Qatar’s Finance Minister Ali bin Ahmed Al-Kuwari echoed this sentiment, emphasizing the importance of Syria’s economic recovery for regional prosperity.   

Aibrahim also addressed Saudi Arabia’s international engagements, including recent diplomatic efforts with the US and China, stressing the need for stronger global economic ties. “It’s in the interest of both (the US and China) that we remain strong partners,” he said.