Al-Tassan to Asharq Al-Awsat: Major Int’l Companies Are Interested in Entering Tadawul

Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia (Asharq Al-Awsat)
Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia (Asharq Al-Awsat)
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Al-Tassan to Asharq Al-Awsat: Major Int’l Companies Are Interested in Entering Tadawul

Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia (Asharq Al-Awsat)
Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia (Asharq Al-Awsat)

Saud Al-Tassan, CEO of EFG Hermes Saudi Arabia, revealed that major international companies, including BlackRock and Franklin Templeton, are showing great interest in entering the Saudi financial market (Tadawul).

He stressed that the Public Investment Fund (PIF), through its acquisition of local companies, plays “a major positive role in raising the quality in all sectors, which made investors aspire to a larger stock market.”

Al-Tassan was speaking in an interview with Asharq Al-Awsat, on the sidelines of the EFG Hermes Saudi Forum, which was held on Monday and Tuesday in London, under the theme, “Looking for Sustainable Growth.”

The event was attended by 370 participants, including investors, businessmen and representatives of more than 50 Saudi joint stock companies, in addition to the Chairman of the Board of Directors of the Saudi Capital Market Authority, Mohammed bin Abdullah Al-Kuwaiz, and the Executive Director of the Saudi Tadawul, Mohammed Al-Rumaih.

Al-Tassan said that the outcome of the forum was “very positive,” pointing to the great cooperation between Tadawul and Saudi Hermes, which managed the IPOs of major companies, including Aramco, ACWA Power and Americana in the Saudi market.

Asked about the challenges facing foreign investors in the Saudi financial market, the CEO of EFG Hermes Saudi Arabia pointed to the percentage allocated to foreigners, which is approximately 15 percent, noting that in some markets in the world, foreign investors’ share exceeded 50 percent.

“The reason for this is the strong internal demand for the Saudi financial market. This is very important, but with time we hope to see an increase in the permitted percentages of foreign investments,” he told Asharq Al-Awsat.

Al-Tassan stressed that this matter would not prevent the achievement of the Saudi financial market’s ambition to become one of the five largest global markets, saying that Tadawul was now among the 10 largest markets in the world.

“[Tadawul] was very far from this rank when Vision 2030 was announced in 2016; therefore we are optimistic that it will become among the top 5 markets by 2030, and may surpass this rank,” he remarked.

Regarding the sectors that will constitute the engine of this growth, he said: “We expect all sectors to achieve growth, especially since we, in Saudi Arabia, have all the ingredients to become one of the largest competitors at the global level.”

Al-Tassan continued: “We are here [in London] not because of oil. Oil has been in Saudi Arabia for a long time. What has changed now, under the guidance of the wise leadership, is that the focus has become on non-oil sectors. Oil helped us reach this stage, but we are optimistic about other sectors that have had a significant impact on the Saudi market.”



Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
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Deputy Minister of Industry: Saudi Arabia to Establish International Frameworks for Sustainability in Mining Sector

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)
Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer (Photo: Turki Al-Aqili)

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khalid Al-Mudaifer revealed that spending on exploration in Saudi Arabia’s mining sector has seen a significant rise, increasing from approximately SAR 100 million ($26.6 million) in 2018 to over SAR 500 million ($133.3 million) annually.

Al-Mudaifer stated that these funds are being invested in local service companies, including drilling and laboratory services, as well as employing Saudi and international professionals.

The deputy minister made these remarks during a press conference held to unveil details of the fourth edition of the International Mining Conference, scheduled to take place in Riyadh from January 14-16.

Al-Mudaifer described the conference as a key platform for addressing challenges in the mining sector and finding practical solutions. The event will host representatives from 85 countries, including mineral producers and consumers, alongside over 50 international organizations, trade unions, and community organizations.

The conference will feature more than 75 sessions with over 250 speakers, including ministers and senior local and international officials, covering pressing topics such as project financing, promoting future mining zones, the role of minerals in community development, and the impact of technology on the sector.

Al-Mudaifer emphasized Saudi Arabia’s ambition to establish international cooperation frameworks in mining, driven by its historical significance and geographic location as a trusted energy supplier. He highlighted the need for a unified global effort to address the sector’s growing challenges, including insufficient exploration spending, which currently falls short of the level required to achieve sustainable growth.

The deputy minister noted that increased exploration investment, technological innovation, and attracting further investment are essential for overcoming these challenges. Despite these obstacles, he remains optimistic, citing the rising global demand for minerals as a significant economic growth driver.

Saudi Arabia is experiencing significant opportunities in mining, particularly in exploration. Al-Mudaifer pointed out that new mineralized zones, covering areas between 2,000 and 4,000 square kilometers, have been announced for 2024—a tenfold increase compared to 2023.

Previously, only 1,000 square kilometers were allocated annually for exploration, but this year, approximately 10,000 square kilometers were offered, he remarked. Several major international companies have entered the latest investment competitions, committing to exploration spending, employing young Saudi geologists, and supporting local communities near exploration sites.

Investments and Regulatory Advancements

According to Al-Mudaifer, Saudi Arabia has seen substantial investments in the mining and minerals sectors, particularly in iron, aluminum, electric vehicle batteries, copper, and chemicals. Current investments exceed SAR 120 billion ($32 billion) and are projected to reach SAR 300 billion ($80 billion) by 2035.

He also noted that the Kingdom, is one of the fastest-advancing countries in developing mining regulations and infrastructure. This progress is attributed to the comprehensive strategies under Saudi Vision 2030, which seek to position the Kingdom as a global leader in all sectors, with a strong focus on sustainability.

Aramco Fields

Al-Mudaifer disclosed that Saudi Arabia successfully extracted lithium from brine samples in Aramco’s fields and is planning to launch a commercial pilot program for direct lithium extraction soon. The project will be led by Lithium Infinity (LihyTech), a startup from King Abdullah University of Science and Technology, in collaboration with Aramco and the Saudi Arabian Mining Company (Ma’aden).

Sustainable Development

Ali Al-Mutairi, General Supervisor of the International Mining Conference, stated that inclusivity will be a cornerstone of the event, which aims to bring together all stakeholders in the global mining industry, including governments, international policy-making organizations, NGOs, and investors with the financial capacity to support major projects.

One of the primary goals of the sector, he added, is to foster community development, aligning with the focus of rights of organizations on environmental sustainability and talent development to create job opportunities and promote sustainable growth.

Global Networks

The upcoming conference will spotlight G20 nations and other resource-rich countries, drawing participation from 85 nations and various organizations, including UN-affiliated ones.

A notable new event on the conference’s sidelines will be a meeting of global centers of excellence and technology to establish a regional and international network aimed at building human capacity, accelerating the adoption of advanced technologies, and transferring expertise from developed to less-developed countries.

The conference will also introduce the Investment Pathway, a two-day program designed to address one of the mining industry’s critical challenges: financing, particularly for early-stage exploration projects.

Knowledge Exchange

The accompanying three-day exhibition will focus on modern mining technologies, Al-Mutairi said, adding that it will feature national pavilions from leading mineral-producing countries, including Australia, Canada, Brazil, and India, fostering technological and knowledge exchange.

For the first time, the conference will host a Knowledge Exchange Day, providing a dedicated platform to share the latest developments in mineral information, geology, technology, sustainability, and talent development, with the aim to enhance collaboration and expertise-sharing among global specialists.