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Saudi Arabia Pumps $80 Bn to Develop Local Content

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia Pumps $80 Bn to Develop Local Content

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The estimated value of government competitions that meet the requirements of local content and localization amounted to $80 billion since the launch of legislation until the first half of 2022, announced Minister of Industry and Mineral Resources Bandar Ibrahim AlKhorayef.

He said that developing local content requires integrated work and concentrated efforts and cooperation of various government bodies, partners from the private sector, and society.

AlKhorayef, who is also chairman of the Board of Directors of the Local Content and Government Procurement Authority, was speaking at the Local Content Forum in Riyadh on Monday.

He indicated that the cabinet approved the formation of local content development teams in government agencies to ensure the unification of efforts and joint work with the authorities to achieve the goals.

About 270 teams have been formed to work on achieving the agenda in all government sectors amid efforts to create a stable and robust economy.

National factories

The minister disclosed that local content accounts for 46 percent of companies' total spending on goods and services for 2020, with an estimated value of $30.1 billion.

It came along with empowering national factories through the mandatory list of national products, with about 4,000 factories benefiting from it, with an impact of more than $5.3 billion on the national economy.

The minister explained that Vision 2030 requires a unique business model, adding that the goals outlined cannot be achieved using traditional methods, and the vitality of local content comes into the picture at this juncture.

"This concept represents a comprehensive umbrella under which several elements fall, starting from the product to services, personnel, training, and technology," added AlKhorayef.

Several ministers participated in the first edition of the Local Content Forum and discussed the latest initiatives and programs to develop local content in targeted sectors.

Food products

Minister of Environment, Water, and Agriculture Engineer Abdul Rahman al-Fadhli addressed the recent government approval to allocate $24.2 billion to promote local content of all food products, which will lead to a rise in local content, an increase in gross domestic product, and expand the ability to export.

Fadhli said the agricultural sector achieved an increase of $19.2 billion last year, representing 2.3 percent of the GDP.

He expected the total value of loans issued by the Agricultural Development Fund to reach $1.8 billion, with over $32 billion invested in the water sector over the past six years.

Saudi Arabia is a pioneer in producing desalinated water and its industry's localization, enabling the use of locally developed materials and technologies.

The Minister noted that the government approved $28 billion for the water sector to be invested over the next two years to boost services and ensure the product is sustainable.

Fadhli added that the government enacted possible policies, legislation, and incentives to expand local content and ensure its sustainability, development, and improvement, which translates into job opportunities that benefit Saudi youth.

Foreign investment

Minister of Investment Eng. Khalid al-Falih underscored the significance of quality investors, including Saudis and foreigners, in further boosting localization and enhancing local content.

"Saudi Arabia attaches great importance to local content, localization, and foreign investors, and its policy look at the presence of foreign investor as a tool to achieve higher goals," Falih said.

Falih stated that international investors coming to the Kingdom are looking for the local market and competencies and taking advantage of the Kingdom's capabilities to obtain global competence.

He stressed the importance of attracting foreign investment and promoting local investment, saying this would benefit the local market as a temporary stimulus and lead to the withdrawal of regulatory restrictions or financial incentives in exchange for local content.

Long-term contracts

Meanwhile, Minister of Finance Mohammed al-Jadaan stressed the importance of local content in enabling and providing a stimulating environment for the private sector and taking into account the requirements of the new competition system.

Jadaan stated that the Local Content Authority, the Spending Efficiency Authority, and government projects are working to achieve and enable local content.

He indicated that new contractual frameworks were developed in the contracting and bidding system for procurement by signing long-term contracts, stipulating localization, knowledge transfer, stimulating small and medium enterprises, and providing additional incentives.

According to Jadaan, the Ministry of Finance wants to provide services to citizens and an environment that stimulates business.

The ministry's primary role is economic growth, creating opportunities for the private sector to develop local content and localize goods and services, and providing an attractive environment for foreign investors based on the national investment strategy.

Logistics

Minister of Transport and Logistics Services Saleh al-Jasser stated that the Kingdom has a clear vision and interest in local content and devised several mechanisms to promote its plans.

The Minister stressed that the transport and logistics system has a national strategy to promote local content, whether in assets, human resources, goods, services, or technologies, in cooperation with the relevant authorities.

Jasser discussed the ministry's strategies, adding that it has devised over 1,000 initiatives, including 30 major ones, including the Landbridge Project, which significantly boosts the Kingdom's position as a global logistics hub.

The "Future of Localization in the Kingdom" session discussed directing military spending towards localization and opportunities for developing local content in the industrial sector.

Military industries

The governor of the General Authority for Military Industries (GAMI), Ahmed al-Ohali, announced 175 facilities pump their money into Saudi Arabia, highlighting the Kingdom's advantages, including its qualitative capabilities and strategic location at the heart of global supply chains.

Saudi Arabia also provides several facilities to foreign investors and has allowed full-business ownership without needing a local partner.

Ohali indicated that GAMI held more than 17 workshops, which determined the outputs of the supply chain project with 74 investment opportunities with an estimated total investment of $72 billion.

Mineral wealth

The Saudi Arabian Mining Company (Maaden) launched its Local Content Program (Tharwah) to maximize the mining industry's contribution to the Saudi economy in line with Vision 2030.

Maaden estimates that its spending on goods and services to support its operations will reach $14.6 billion by 2040, enabling the authority to contribute $8.8 billion to the GDP and create 47,000 promising jobs for Saudis during the same period.

The "Tharwah" program focuses on five main axes, including generating high-quality employment opportunities that meet the expectations of young Saudis, creating opportunities that incentivize local investment and strengthen the local economy, and supporting the development of SMEs as an engine of growth for the broader Saudi economy.

It also seeks to reinforce efforts to support remote communities and businesses, helping create robust, self-reliant business ecosystems that strengthen the local economy, and partner with organizations across the mining value chain to grow the capabilities and capacity of Local Content.

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Business

Oil Drops as Trump Calms Iran Fears; Tech Stocks Slide in Asia

The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
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Oil Drops as Trump Calms Iran Fears; Tech Stocks Slide in Asia

The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)
The Iranian flag and 3D printed oil barrels miniature are seen in this illustration taken June 23, 2025. (Reuters)

Oil prices retreated from multi-month highs on Thursday and gold eased from a record peak after US President Donald Trump calmed market anxiety over potential US military action against Iran.

A selloff in tech stocks extended into Asian trading, following declines on Wall Street, as investors rotated out of high-flying chip and artificial intelligence-related names while searching for bargains in other parts of the market.

Currencies paused for breath after the yen dropped to its weakest point since July 2024 against the US dollar overnight and then bounced back sharply amid warnings of possible intervention by Japanese authorities, Reuters said.

Japanese bond yields eased back from record peaks following a spike driven by speculation - which was later confirmed - ‌that the government will ‌call snap elections, a scenario that is expected to lead to ‌bigger ⁠fiscal stimulus.

Brent crude ‌futures dropped 3.4% to $64.25 and Nymex futures sank 3.4% to $59.89, after vaulting as high as $66.82 and $62.36, respectively, in the previous session.

Trump said on Wednesday afternoon that he had been told that killings in Iran's crackdown on nationwide protests were subsiding and he believed there was currently no plan for large-scale executions.

Gold fell 0.5% to around $4,598 per ounce. On Wednesday, it reached an unprecedented $4,642.72.

Stocks in Asia were mixed, but tech shares were met with more selling.

In Japan, the tech-heavy Nikkei eased 0.9% after hitting an all-time peak in ⁠the previous session, though the broader Topix extended its own record high on Thursday with a 0.8% advance.

Taiwan's TAIEX sank 0.4% and Hong ‌Kong's Hang Seng slipped 0.5%, with tech shares weighing.

Chinese blue ‍chips edged 0.1% lower, while South Korea's KOSPI ‍added as much as 1.3% to a fresh record high. The Bank of Korea left interest ‍rates unchanged on Thursday, as expected by economists, and signaled an end to its current easing cycle to prioritize financial stability.

FTSE futures pointed 0.6% higher, suggesting the cash index would open with an extension of its record high from Wednesday. Pan-European STOXX 50 futures tacked on 0.3%.

S&P 500 E-mini futures were flat after the cash index sank 0.5% overnight. The tech-focused Nasdaq Composite dropped 1%.

"There’s a rotation playing out on Wall Street that’s ultimately weighing on indices but indicates that the internals of the market ⁠are holding up reasonably well," said Kyle Rodda, an analyst at Capital.com.

"The strength in cyclicals, in no small part due to the positive outlook for the US economy, is propping up stocks and providing constructive signals to market participants of broadening market strength."

The US dollar was steady against its major peers on Thursday, with the dollar index up very slightly at 99.137.

It was unchanged at 158.44 yen after surging as high as 159.45 yen on Wednesday before pulling back sharply.

Japanese Finance Minister Satsuki Katayama issued another verbal warning on Wednesday, saying officials would take "appropriate action against excessive FX moves without excluding any options."

Prime Minister Sanae Takaichi plans to dissolve parliament's lower house next week and call a snap parliamentary election as early as February 8.

Expectations of bigger fiscal stimulus on an improved mandate have spurred investors to sell the yen ‌and government bonds, sending longer-dated yields to record highs in recent days.

Japan's 20-year yield shed 2.5 basis points on Thursday to 3.135% after vaulting to an unprecedented 3.165% in the prior session.

Business

Saudi Arabia Expands Int’l Partnerships with Three Countries to Develop Metals Industry

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Expands Int’l Partnerships with Three Countries to Develop Metals Industry

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef delivers the opening address at the Future Minerals Forum in Riyadh (Asharq Al-Awsat)

Saudi Arabia has expanded its network of international partnerships after the Ministry of Industry and Mineral Resources signed three memorandums of understanding on cooperation in mineral resources with Chile, Canada, and Brazil, aimed at strengthening frameworks for technical and investment cooperation in the mining and metals industry in a way that serves shared interests.

The move coincides with the launch on Wednesday of the fifth edition of the Future Minerals Forum in Riyadh, held under the patronage of King Salman bin Abdulaziz, and drawing unprecedented international participation of more than 20,000 attendees and around 400 speakers, including ministers, experts, executives from major global mining companies, international organizations, academic institutions, and financial bodies.

In his opening remarks, Minister of Industry and Mineral Resources Bandar Alkhorayef stressed that the forum would continue to play a pivotal role, noting its evolution from a platform for dialogue into a global decision-making hub that influences policy and mobilizes investment.

Alkhorayef said the fifth edition marks a qualitative milestone in the forum’s journey as a central platform for shaping decisions and building partnerships across the entire mineral value chain, adding that the major transformations the world is witnessing, including artificial intelligence applications and the energy transition, cannot be achieved without securing minerals and their associated supply chains in a responsible and sustainable manner.

Exploration licenses

On the domestic front, he stated that the kingdom continues to play its role in enhancing the resilience of global mineral supplies, in line with Vision 2030, through a thriving and sustainable mining sector that is attractive to investment, supports economic diversification, and creates jobs.

Alkhorayef said Saudi Arabia has allocated more than 33,000 square kilometers to local and international companies through competitive rounds for exploration and mining licenses, noting that the ninth round alone saw the award of 172 mining sites to 24 companies, the largest licensing round to date.

He also said geophysical and geochemical surveying of the Arabian Shield has been completed at a rate of 100 percent, and that spending on exploration has grown by more than fivefold since 2020, rising from one million riyals to 1.052 billion riyals, about $280 million, in 2024.

He reaffirmed the kingdom’s commitment to accelerating investment in its estimated mineral potential of around 9.4 trillion riyals, about $2.5 trillion, by offering competitive exploration opportunities in 2026 and 2027.

As part of efforts to enable investment and reduce risk, Alkhorayef announced the launch of a mining infrastructure enablement initiative in partnership with the Saudi Authority for Industrial Cities and Technology Zones, commonly referred to as Modon.

Its first project will involve building a 75-kilometer treated water pipeline to support development in the Jabal Sayid area and accelerate the implementation of mining projects.

The launch of the forum’s fifth edition also coincides with the announcement of two new private funds designed to support opportunities across the mineral value chain in the kingdom, reflecting investor confidence and the sector's increasing maturity.

The initiatives include strategic partnerships to support mining projects and midstream value chain projects, as well as the launch of a new investment fund to back mineral and industrial opportunities.

On the research front, national bodies involved in research and development are signing strategic agreements with international partners to enhance innovation in exploration, processing, and digitalization, thereby supporting higher efficiency in the mining sector and facilitating the faster adoption of advanced solutions.

Capital flows

In a panel discussion, Finance Minister Mohammed al-Jadaan said the mining sector plays a pivotal role in attracting capital, underscoring the need for clear, stable, and well-defined policies to support long-term investment.

He noted that global markets are experiencing rising uncertainty due to economic changes and geopolitical developments.

Al-Jadaan stated that many countries view minerals as strategic assets due to the significant opportunities they offer for growth and development. In the current climate of global volatility, he added, the sector requires greater reliability and predictability, as well as disciplined investment decisions when selecting countries and minerals most suitable for investment.

He said geopolitical tensions have become the main source of uncertainty hanging over the global economy, with their impact clearly visible in sectors that require long-term investment, foremost among them mining, which needs high levels of stability and predictability given its long operating cycles.

Despite the challenges, he said the environment offers opportunities if handled correctly by states or investors, noting that many countries now view minerals as a national or, at the very least, economic security issue, opening the door to partnerships with host countries or even third parties.

Al-Jadaan stressed the importance of discipline in seizing these opportunities through careful selection of investment destinations and target minerals, particularly in light of current geopolitical and economic challenges.

He said the mining sector cannot focus solely on the near term, but needs a forward-looking vision extending to 2040.

He described current global conditions as only the beginning of what could be expected in 2026, stressing that credibility, predictability, and certainty are the main drivers of major investment decisions, and that their absence at present poses a real challenge to capital inflows.

He urged investors to exercise discipline by carefully choosing target countries and strategic minerals, noting that partnerships with third parties could be an effective way to overcome the economic and political volatility the world is currently experiencing.

Mining investment

In another panel, Investment Minister Khalid al-Falih stated that estimates by global institutions, including McKinsey and IHS, indicate that the global mining sector will require approximately $5 trillion in investment over the next decade, encompassing the entire value chain, including supporting infrastructure.

He said a gap remains between the amount of capital available globally and the investment required to expand mining activity, noting that while the investment community has ample liquidity, the challenge lies in directing that funding toward a sector that is essential rather than optional.

Al-Falih said the sector’s importance stems from geopolitical considerations that require diversification and resilience in supply chains, in addition to the demands of the energy transition and changes driven by artificial intelligence and digital technologies, all of which depend on rare and critical minerals that can only be supplied by a mining sector capable of exploration, development, and production.

He said the sector includes leading global companies with the expertise and capabilities required, alongside the availability of promising geological areas that remain underexplored, such as the Arabian Shield in Saudi Arabia and other regions in what he described as the super region stretching from Central Asia to West Africa.

Al-Falih also touched on the financial market performance of Maaden and its positive results, which have been reflected in its market valuation, stressing the need to inject the investments required to support the sector’s growth.

He said the biggest challenge lies in perceived risks, ranging from exploration risk to environmental risk, as well as social, and governance obligations. He noted that Saudi Arabia has worked to address the risk-return gap through an investment strategy, an investment law, and an active government role in reducing risk.

He added that mining revenues and fees are redirected to a dedicated fund to address gaps not covered by the private sector, and said transparent data is a key factor in reducing risk, particularly after the completion of a comprehensive geological survey and the availability of its data to investors.

He concluded by saying that Saudi Arabia has developed railways, ports, and industrial cities to ease the burden on companies, as part of an integrated strategy that addresses regulation, policy, and financing, and helps set the kingdom’s experience apart from global trends.

New discoveries

Maaden Chief Executive Robert Wilt said Saudi Arabia has a strong foundation as it moves into diversification models under Vision 2030 and seeks to leverage all of the country’s resources.

He said that on the back of this foundation, the company plans to invest $110 billion over the next decade, doubling its aluminum and phosphate businesses and tripling gold exploration.

Wilt said the scale of infrastructure required demands strong government enablers, and that by working with multiple ministries to implement mining policies in Saudi Arabia, significant capital is available for construction and development.

He said the company expects to announce a partnership this week with a global firm to attract thousands of developers and engineers from leading international companies.

He also referred to the government’s announcement last year of the discovery of 7.8 million ounces of gold in the kingdom, while disclosing global exploration programs.

“We can achieve 30 percent in our portfolio by growing partnerships that result from enhancing mineral exploration capabilities in the kingdom,” he said.

Panel discussions

Other sessions highlighted key themes on strengthening the role of mining in building the national economy. The chairman of Chile’s Codelco stated that the country’s economy is built on copper, with one of the world’s largest reserves. Copper forms a major part of its exports, cementing its position as one of the world’s leading copper producers.

David Copley, special assistant to the US president on the National Security Council, said minerals have become a priority for the national economy and are the building blocks for everything countries need to reindustrialize.

The forum’s program includes a wide range of events, including the Mining Investment Journey, the Finance Gateway in partnership with the Bank of Montreal, MinGen workshops aimed at youth and women in mining, the MinValley innovation and technology platform, and a knowledge exchange platform that brings together leading experts to share the latest developments in geology, technology, sustainability and skills development.

The forum will conclude with the announcement of winning teams and the honoring of partners in a closing ceremony highlighting the outcomes of the Future Minerals Pioneers competition, celebrating innovators, boosting the competitiveness of the mining and metals sector, supporting Vision 2030 targets, and reinforcing Saudi Arabia’s position as a global innovation hub in this vital sector.

As part of efforts to promote innovation, the forum will also see the launch of the Start-Up Derby, organized by the National Industrial Development and Logistics Program, as an event held at the Minerals Café in the outdoor exhibition area on January 14 and 15.

The initiative serves as an open platform to showcase emerging technologies and innovative business models in mining, critical minerals, and processing, with direct links between innovators and investors.

 

Business

Global Unemployment ‘Stable’ in 2026, but Decent Jobs Lacking

A Palestinian employee inspects sweet locally known as "al-Shatwi" (Winter) Crimbo sweets, as the Al-Arees factory gradually resumes operations after a hiatus caused by the Gaza war which led to shortages of raw materials used in their products, in Deir al-Balah, in the central Gaza Strip on January 12, 2026, following a US-brokered truce that halted the two-year war. (AFP)
A Palestinian employee inspects sweet locally known as "al-Shatwi" (Winter) Crimbo sweets, as the Al-Arees factory gradually resumes operations after a hiatus caused by the Gaza war which led to shortages of raw materials used in their products, in Deir al-Balah, in the central Gaza Strip on January 12, 2026, following a US-brokered truce that halted the two-year war. (AFP)
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Global Unemployment ‘Stable’ in 2026, but Decent Jobs Lacking

A Palestinian employee inspects sweet locally known as "al-Shatwi" (Winter) Crimbo sweets, as the Al-Arees factory gradually resumes operations after a hiatus caused by the Gaza war which led to shortages of raw materials used in their products, in Deir al-Balah, in the central Gaza Strip on January 12, 2026, following a US-brokered truce that halted the two-year war. (AFP)
A Palestinian employee inspects sweet locally known as "al-Shatwi" (Winter) Crimbo sweets, as the Al-Arees factory gradually resumes operations after a hiatus caused by the Gaza war which led to shortages of raw materials used in their products, in Deir al-Balah, in the central Gaza Strip on January 12, 2026, following a US-brokered truce that halted the two-year war. (AFP)

The global unemployment rate is expected to hold steady in 2026, the United Nations said Wednesday, but cautioned the labor market's seeming stability belies a dire shortage of decent jobs.

The UN's International Labor Organization said the global economy and labor market appeared to have weathered recent economic shocks better than expected.

But the ILO warned that efforts to improve global job quality had stagnated, leaving hundreds of millions of workers wallowing in poverty, even as trade uncertainty risked cutting into workers wages.

The global unemployment rate was estimated at 4.9 percent last year and the year before, and is now projected to remain at a similar level until 2027, a report from the UN labor agency said.

That amounts to 186 million people out of work this year, it said.

"Global labor markets look stable, but that stability is quite fragile," Caroline Fredrickson, head of the ILO's research department, told reporters, cautioning that the "apparent calm masks deeper and unresolved problems".

At a time when US President Donald Trump has slapped towering tariffs on friends and foes alike, the report cautioned that "disruptions caused by trade uncertainty, combined with ongoing long-term transformations in global trade, could significantly affect labor market outcomes".

Going forward, the ILO said its modelling suggested that a moderate increase in trade policy uncertainty "may reduce returns to labor and, as a consequence, real wages for both skilled and unskilled workers across all sectors", especially in Southeast Asia, Southern Asia and Europe.

The potential of trade to generate new employment opportunities was also being challenged by the ongoing disruptions, the report said, pointing out that 465 million jobs globally depended on foreign demand through exports of goods and services and related supply chains in 2024.

- Extreme poverty -

Another major concern highlighted by the ILO was the quality of jobs available.

"Resilient growth and stable unemployment figures should not distract us from the deeper reality: hundreds of millions of workers remain trapped in poverty, informality, and exclusion," ILO chief Gilbert Houngbo said in a statement.

Nearly 300 million workers continue to live in extreme poverty, earning less than $3 a day, Wednesday's report found.

At the same time, some 2.1 billion workers are expected to hold informal jobs this year, with limited access to social protection, labor rights and job security.

Young people remain particularly vulnerable, with unemployment among 15- to 24-year-olds projected to reach 12.4 percent for 2025, with around 260 million young people not engaged in education, employment or training, ILO said.

It warned that artificial intelligence and automation could exacerbate challenges, particularly for educated young people in wealthier countries seeking their first high-skill jobs.

"While the full impact of AI on youth employment remains uncertain, its potential magnitude warrants close monitoring," the report said.

The ILO also highlighted "entrenched gender inequalities", pointing out that women still account for just two-fifths of global employment.

"Stable labor markets are not necessarily healthy," Fredrickson said, stressing the growing need for "domestic policy choices to strengthen decent work outcomes".

"Without decisive action, today's stability risks giving way to deeper inequalities."