Mining Industry in Saudi Arabia 2025

Saudi Arabia’s mining sector in 2025 is positioned as the third pillar of the national economy, with the government targeting growth from SAR 68 billion to SAR 240 billion in GDP contribution by 2030. The Kingdom’s estimated USD 1.3 trillion in untapped mineral resources, combined with the modernised 2020 Mining Investment Law, makes Saudi Arabia one of the world’s most significant emerging mining jurisdictions.

Ma’aden Performance

Ma’aden (Saudi Arabian Mining Company) remains the national mining champion and is listed on the Tadawul. The company operates diversified mining assets across phosphate (through a joint venture with Mosaic), aluminium (with Alcoa), gold (multiple mines in the Arabian Shield), and industrial minerals. Ma’aden’s expansion plans include new copper mines, additional gold operations, and mineral processing capacity increases.

Exploration Activity

Exploration licence issuance has accelerated significantly since the 2020 Mining Investment Law took effect. The Ministry of Industry and Mineral Resources has issued hundreds of exploration licences, both to domestic operators and international mining companies. The Arabian Shield, covering the western third of Saudi Arabia, is being systematically explored for gold, copper, zinc, rare earth elements, and industrial minerals.

The Saudi Geological Survey has released detailed geological data to support exploration activity. Remote sensing, geochemical surveys, and drilling programmes are expanding the known mineral endowment.

Regulatory Framework

The 2020 Mining Investment Law modernised the regulatory environment with longer licence terms (up to 30 years for mining, renewable for 20 more), clearer royalty structures, improved investor protections, and dispute resolution mechanisms. The law allows 100 percent foreign ownership of mining licences. The Ministry of Industry and Mineral Resources manages the licensing process through a digital platform.

Infrastructure Development

Mining infrastructure investment includes the Northern Minerals Railway (connecting phosphate deposits to Ras Al Khair port), road networks in the Arabian Shield, and dedicated mining industrial zones. Wa’ad Al Shamal in the northern region serves as a purpose-built mining city with integrated processing facilities.

Mineral Processing

Saudi Arabia is investing in downstream mineral processing to capture more value domestically. Phosphate fertiliser production, aluminium smelting (through the Ma’aden-Alcoa joint venture at Ras Al Khair), and steel manufacturing add value to raw mineral extraction. Plans for rare earth processing are under development, aligned with global supply chain diversification trends.

Future Minerals Forum

The annual Future Minerals Forum (FMF), held in Riyadh, has become a leading global mining industry event. The forum brings together mining companies, investors, government officials, and technology providers, facilitating investment announcements and partnership formation.

Critical Minerals

Saudi Arabia’s mineral endowment includes minerals critical to the energy transition: copper (for electrical systems), lithium (for batteries), rare earth elements (for magnets and electronics), and cobalt. The Kingdom’s potential as a critical minerals supplier aligns with global efforts to diversify supply chains away from concentrated sources.

Challenges

Mining development timelines are inherently long, with exploration-to-production cycles spanning 5-15 years. Water scarcity in mining regions requires innovative solutions. The Kingdom’s mining workforce needs development, as the sector has limited historical depth in Saudi Arabia. Commodity price volatility affects project economics.

Saudi Arabia’s mining sector in 2025 is at the early stages of a long-term growth arc. The combination of geological endowment, regulatory reform, infrastructure investment, and government commitment suggests that mining will indeed become a significant contributor to the post-oil Saudi economy.

See our Mining Sector Profile and How to Invest in Mining.