Riyadh, January 16, 2025 – Minister of Finance Mohammed bin Abdullah Al-Jadaan reinforced the Kingdom of Saudi Arabia’s commitment to aligning all sectors with the growth of its mining industry, emphasizing the critical role of strategic investments within the framework of the National Industry Development and Logistics Program (NIDLP). Speaking at the fourth annual Future Minerals Forum (FMF) in Riyadh, Al-Jadaan underscored the pivotal importance of advancing the mining sector, which plays a key role in the Kingdom’s broader economic diversification goals.
The minister pointed out that substantial early investments in the mining sector are essential for its long-term success and sustainability. He highlighted several key factors that would support the growth of the industry, including the availability of comprehensive mining-related data, technical considerations, and geological surveys, as well as necessary budget allocations to facilitate progress. These elements, Al-Jadaan explained, are critical for ensuring that companies involved in or entering mining exploration are well-equipped to navigate the complexities of the sector.
One of the most pressing concerns discussed by the Minister was the need for a flexible legislative framework that allows companies to quickly obtain the necessary licenses to operate. In an industry where timelines can be critical, Al-Jadaan emphasized that bureaucratic delays should be minimized to allow businesses to move forward without unnecessary hurdles. “We must leverage the strength of partnerships in complex mining industries that demand substantial investments. The government cannot achieve this alone; it requires understanding operational dynamics and collaborating with the private sector,” he stated, highlighting the importance of a public-private partnership model in driving the sector’s growth.
In his remarks, Al-Jadaan also presented a range of potential solutions to overcome existing challenges within the mining sector. Streamlining individual components of the industry, such as regulatory processes and supply chain management, was identified as an important step toward efficiency. To reduce the financial burden on companies, the government is also focusing on providing subsidies for logistics services, which are essential for facilitating the transport of mining materials. Additionally, exemptions from certain liabilities and expenses are being considered to help ease the operational costs for companies entering the mining sector.
Al-Jadaan also noted the critical role of multilateral institutions in supporting the growth of developing countries, particularly in the mining industry. He stressed that these institutions can offer invaluable assistance by providing financial support and implementing sound economic policies that aid in the development of mining infrastructure and capacity. By fostering collaboration and encouraging investment, these global entities can play a key role in ensuring that countries, including Saudi Arabia, realize their mining sector potential.
The Minister’s remarks underscored the Saudi government’s comprehensive approach to fostering a thriving, sustainable mining industry, with a focus on creating a conducive environment for both local and international investors. As the Kingdom moves forward with its ambitious vision for the sector, these initiatives and partnerships are expected to play a crucial role in positioning Saudi Arabia as a leader in the global mining market. The ongoing discussions at the Future Minerals Forum serve as a testament to the government's commitment to this vision and its determination to address the challenges that lie ahead.
