Saudi Arabia Launches New Incentives to Enhance Mining Exploration with $182 Million

The new incentive package includes a series of financial facilities for companies and investors (Photo: Reuters)
The new incentive package includes a series of financial facilities for companies and investors (Photo: Reuters)
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Saudi Arabia Launches New Incentives to Enhance Mining Exploration with $182 Million

The new incentive package includes a series of financial facilities for companies and investors (Photo: Reuters)
The new incentive package includes a series of financial facilities for companies and investors (Photo: Reuters)

The Saudi Ministry of Industry and Mineral Resources launched new incentives, in cooperation with the Ministry of Investment, amounting to approximately SAR 685 million ($182 million), aiming to support mining exploration in the Kingdom and reduce risks facing exploration companies during their early stages, in addition to encouraging investment in this vital sector according to the objectives of Vision 2030.

In a statement, the ministry said that the new incentive package includes a series of financial facilities for companies and investors wishing to invest in mineral resource exploration activities in the Kingdom, in addition to a priority framework for investors who commit to fostering local talent and expertise in the sector.

The ministry added that the new incentives also include financial support for companies that have licenses valid for less than 5 years, as each license is entitled to a maximum support of SAR 7.5 million ($2 million), while each company can benefit from support for up to 15 licenses according to the program’s terms and conditions.



Saudi Energy Firms Post $26 Billion in Q1 Profits

Saudi Aramco engineers and journalists look at the Hawiyah Natural Gas Liquids Recovery Plant in Hawiyah, in the Eastern Province of Saudi Arabia on June 28, 2021. (AP)
Saudi Aramco engineers and journalists look at the Hawiyah Natural Gas Liquids Recovery Plant in Hawiyah, in the Eastern Province of Saudi Arabia on June 28, 2021. (AP)
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Saudi Energy Firms Post $26 Billion in Q1 Profits

Saudi Aramco engineers and journalists look at the Hawiyah Natural Gas Liquids Recovery Plant in Hawiyah, in the Eastern Province of Saudi Arabia on June 28, 2021. (AP)
Saudi Aramco engineers and journalists look at the Hawiyah Natural Gas Liquids Recovery Plant in Hawiyah, in the Eastern Province of Saudi Arabia on June 28, 2021. (AP)

Saudi Arabia’s listed energy companies recorded a combined net profit of SAR 97.76 billion ($26.06 billion) in the first quarter of 2025, marking a 4% decline from the SAR 101.78 billion ($27.14 billion) reported during the same period last year. The dip was primarily driven by a 4.63% drop in profits from industry giant Saudi Aramco.

Despite the overall decrease, the sector’s performance was supported by increased sales volumes across gas, refined and petrochemical products, and integrated logistics services. Higher profit margins were also achieved due to relatively stable operations, improved global shipping rates, and lower financing costs.

The sector includes seven publicly listed companies: Saudi Aramco, Bahri, ADES, Aldrees, Arabian Drilling, Al-Masafi, and Petro Rabigh.

According to financial disclosures on the Saudi Stock Exchange (Tadawul), all companies in the sector posted profits in Q1 2025, with the exception of Petro Rabigh, which significantly reduced its losses by 49.4%.

Saudi Aramco led the sector with SAR 97.54 billion in profits, despite a slight year-on-year drop from SAR 102.27 billion. Bahri followed, reporting a 17.64% increase in profits to SAR 532.82 million, up from SAR 453 million in Q1 2024.

ADES secured third place with SAR 196.7 million in net profits, reflecting a modest 2.07% decrease from the SAR 200.85 million reported in the same quarter last year.

Aldrees posted the highest growth rate in the sector, with profits soaring by 29.3% to SAR 100.1 million, compared to SAR 77.4 million in Q1 2024.

Commenting on the quarterly results, Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that the energy sector remains highly profitable, with over SAR 97 billion in earnings underscoring its strength and vital role in the Saudi economy.

He attributed Aramco’s decline to lower global oil prices, reduced production in line with OPEC+ recommendations, and increased operating and capital expenditures.

Mohamed Hamdy Omar, CEO of G.World, echoed this view, describing Aramco as the sector’s “primary engine.”

He noted that falling global oil prices, due to weakened Chinese demand, rising trade tensions, and adjustments in OPEC+ production, negatively impacted revenues across the sector.

He also pointed to rising operating costs as a pressure on profit margins, despite ongoing efforts to boost operational efficiency.