Saudi Arabia Collaborates with Other Countries to Explore Critical Minerals in the Region

The Minister of Industry and Mineral Resources speaking to the audience during the ministerial meeting. (Photo by: Bashir Saleh)
The Minister of Industry and Mineral Resources speaking to the audience during the ministerial meeting. (Photo by: Bashir Saleh)
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Saudi Arabia Collaborates with Other Countries to Explore Critical Minerals in the Region

The Minister of Industry and Mineral Resources speaking to the audience during the ministerial meeting. (Photo by: Bashir Saleh)
The Minister of Industry and Mineral Resources speaking to the audience during the ministerial meeting. (Photo by: Bashir Saleh)

Several ministers underlined the necessity of integrated work to explore the mining wealth in the region, including critical minerals, noting that Saudi Arabia has deployed extensive efforts in localizing and investing in this industry.

A ministerial meeting was held, on the sidelines of the third edition of the Future Minerals Forum, which kicked off on Tuesday in Riyadh under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz.

Flow of investments

In remarks to Asharq Al-Awsat, Minister of Industry and Mineral Resources Bandar Al-Khorayef said that the sector was facing great challenges represented by the flow of investments, in addition to defining the nature of critical minerals on the one hand, and the means to extract them with high efficiency on the other, as well as economic aspects.

He added that the government aims for the mining sector to become the third pillar of industries, pointing to several achievements in this regard, including the geological survey project. He explained that a recent assessment of mineral resources would be announced during the conference, which exceeds the previously estimated amount of SAR 5 trillion ($1.3 trillion).

The minister noted that the Kingdom, after issuing the new mining investment system, witnessed a great demand from international mining companies to enter the local market.

He stressed that the new system was considered one of the best in the world in terms of transparency and clarity, as well as the speed of issuing necessary licenses and the relevant taxes that are considered the lowest among countries in the world.

Solar energy

In turn, the Egyptian Minister of Petroleum and Mineral Resources, Eng. Tarek El-Mulla, told Asharq Al-Awsat that the African continent was rich in various and critical minerals, pointing to the importance of exploiting these resources to work on transitional and solar energy, batteries and other materials that are necessary to reduce emissions and the use of fossil fuels.

Al-Mulla revealed the signing of a memorandum of understanding with his Saudi counterpart for technical and geological cooperation in potential manufacturing operations using natural resources in both countries, and also with regard to the training, research and studies.

Libyan Minister of Industry and Minerals Ahmed Abu Hisa said that his country was following the industrial revolution in the Kingdom, stressing that Libya aspires to have a share in these investments in the field of manufacturing, innovation, research and geological development.

Supply chains

Deputy Minister of Industry and Mineral Resources for Mining Affairs Eng. Khaled Al-Mudaifer emphasized the possibility to create unprecedented opportunities out of the challenges facing the sector, with the aim to increase investments and build capabilities to meet the growing global demand.

The goal of the ministerial meeting is to support supply chains by focusing on increasing investments and capacity building, he said, stressing the need for integrated work to meet the need for building materials and infrastructure.

“We will build a global framework for minerals in order to set policies and accelerate exploration and extraction operations, as we are on the verge of a new era in the mining sector and metals industry,” Al-Mudaifer told Asharq Al-Awsat.

The Future Minerals Forum 2024, which is held on Jan. 10-11, is hosting more than 15,000 participants from 145 countries, and more than 200 speakers, including CEOs of major companies working in the mining industry, the metals and the finance sector.



Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)
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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)

Saudi Arabia’s non-oil private sector concluded 2024 on a high note, with significant increases in sales and business activity fueled by robust domestic and international demand.
The Kingdom’s non-oil GDP is expected to grow by over 4% in both 2024 and 2025, supported by notable improvements in business conditions, according to Riyad Bank’s Purchasing Managers’ Index (PMI) report.
Despite inflationary challenges, the Riyad Bank PMI recorded 58.4 points in December, reflecting strong and accelerated economic recovery, albeit slightly lower than November’s 59.0 points.
The solid performance highlights improvements across non-oil sectors, with new business activity in December growing at its fastest pace in 12 months. This growth reflects rising domestic and global demand. Renewed marketing efforts and strong customer demand encouraged companies to boost production and expand operations, particularly in wholesale and retail.
The PMI has remained above the neutral threshold of 50.0 points since September 2020, signaling continuous expansion in Saudi Arabia’s non-oil economic activity.
The International Monetary Fund (IMF) previously projected sustained momentum in Saudi Arabia’s non-oil reforms, estimating non-oil GDP growth for 2024 at between 3.9% and 4.4%. The IMF noted that growth could reach 8% if reform strategies are fully implemented.
Expansion in International Markets
A surge in exports was among the key factors driving non-oil economic growth in Saudi Arabia. December saw the largest increase in export orders in 17 months, underscoring the success of Saudi policies in opening new markets and fostering strong international trade relationships, supported by ongoing product innovation.
Higher domestic and international demand boosted production levels in December. Companies also worked to enhance operational efficiency, leading to a notable increase in inventory. Purchasing activity accelerated to its highest level in nine months, reflecting the sector’s ability to effectively meet rising demand.
Cost Pressures on Production
Despite significant growth in production and sales, the sector continues to face challenges related to sharp inflation in input costs, driven by heightened demand for raw materials. These pressures have led to higher product prices, although some companies opted to reduce prices to remain competitive and address elevated inventory levels.
Meanwhile, wage cost increases were less pronounced, helping mitigate economic pressures related to salaries.
Future Outlook
Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, highlighted the positive end to 2024 for the Kingdom’s non-oil private sector, reflecting the progress achieved under Saudi Arabia’s Vision 2030. He noted that the PMI score of 58.4 points demonstrates the sector’s resilience and ongoing expansion.
Al-Ghaith expects non-oil GDP to grow by over 4% in 2024 and 2025, driven by improved business conditions and rising new orders, signaling increased market confidence and demand. Elevated domestic demand and export growth have pushed total sales to their highest level in a year. This, in turn, has led to strong increases in business activity and inventory levels, demonstrating the sector’s ability to meet and capitalize on excess demand, he underlined.