Riyadh, March 19, 2024, The Ministry of Industry and Mineral Resources has reported a significant uptick in the demand for mining licenses following the implementation of the new Mining Investment Law in January 2021. The primary objective of this law is to stimulate investment in the mining sector, foster its growth, and boost the Kingdom's mineral production.
According to the ministry's data, the number of exploitation licenses has surged from eight prior to the law's enactment to 19 in 2023, marking an impressive growth rate of 138%. This increase is part of Saudi Arabia's strategic plan to position the mining sector as a pivotal element of the national industry, thereby establishing the country as a reliable global hub for mining activities.
Moreover, the Kingdom is actively working towards fully leveraging its estimated SAR9.4 trillion mineral wealth potential.
The Mining Investment Law has played a crucial role in simplifying the process of obtaining mining licenses, attracting a diverse range of local and international investors. Consequently, the issuance of building material quarry licenses skyrocketed by 241%, reaching 538 in 2023 compared to 158 before the law's implementation. Similarly, the number of exploration licenses surged to 259 in 2023 from 58 previously, reflecting a remarkable growth rate of 347%.
The ministry also highlighted the effectiveness of mining strategy initiatives like the Accelerated Exploration Program, which has contributed significantly to the increased issuance of licenses. These initiatives have streamlined the approval process, reducing the time required from several months to a more efficient timeframe.
