Al-Mudaifer: Saudi Arabia Attracting Foreign Investment to Explore Critical Minerals in the Region

Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
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Al-Mudaifer: Saudi Arabia Attracting Foreign Investment to Explore Critical Minerals in the Region

Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)
Saudi Vice Minister for Mining Affairs Khalid Al-Mudaifer (Asharq Al-Awsat)

Saudi Arabia is exerting efforts to drive foreign investments into the Kingdom and surrounding region for the purpose of exploring strategic and vital minerals used in renewable energy, Khalid Al-Mudaifer, Saudi vice minister for mining affairs, told Asharq Al-Awsat.

According to Al-Mudaifer, international reports confirm the world’s need for these minerals by 400%, and the region represents 50% of future mineral resources.

Saudi Arabia is going through the best times to develop its wealth in a sustainable manner and use high technologies to take advantage of the future of mining, noted Al-Mudaifer.

The vice minister pointed to the geological significance of the Kingdom and its surrounding region, revealing that they offer opportunities worth SAR 120 billion ($32 billion). Both local and foreign investors are working on those prospects.

About 16,000 new mine licenses with investments estimated at SAR 100 million ($26.6 million) have been issued, affirmed Al-Mudaifer.

Al-Mudaifer’s statements were made at a presser held to announce the details of the 2nd Future Minerals Forum in Riyadh.

Under the patronage of Custodian of the Two Holy Mosques King Salman, the 2nd Future Minerals Forum is scheduled to be held between Jan. 10-12, 2023 at the King Abdulaziz International Conference Center in Riyadh, with the participation of more than 200 speakers from across the world.

Al-Mudaifer revealed that there is a great demand from local and international consortia from the private sector for global auctions for exploration and development of mining in the Kingdom.

Moreover, Saudi Arabia has received many requests for exploration licenses from foreign companies.

This influx came because of the success of the first edition of Future Minerals Forum, asserted Al-Mudaifer.

Al-Mudaifer also stated that the Forum will talk about the emerging mining area, talk about how to build a sustainable mining industry, and learn about the enormous geological potential of targeted areas, pointing out that Saudi Arabia seeks to lead the contribution to the development of the distinguished mining zone extending between Africa and Central and Western Asia.



Saudi Arabia's Real Estate Sector Sees Positive Growth Driven by Changing Economic Factors

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Arabia's Real Estate Sector Sees Positive Growth Driven by Changing Economic Factors

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Saudi Arabia's real estate sector is experiencing positive growth driven by significant social and economic changes in the Kingdom, according to a recent report by S&P Global.

“Significant social and economic changes are making the Kingdom a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing,” the report said.

However, S&P Global noted that Saudi Arabia’s retail landscape is expected to face several challenges, including oversupply.

“Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh’s supply to grow by 50% by 2027 and Jeddah’s to grow 75% over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,” said S&P Global.

In a broader context, the report cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the level of investment and spending in the region, particularly that Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices.

In the Emirates, S&P projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings.

Dubai’s commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6%, and demand for grade-A offices drives up rentals, S&P Global said.

“Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city’s attractiveness for global businesses and family offices,” said the report.

Despite the positive outlook, the report mentioned challenges linked to the escalated and prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.

Also, it said consumer trends are shifting towards innovative shopping experiences and new brands, which may pose challenges to traditional shopping malls.

The report also noted that while the luxury goods sector benefits from sustained high-end spending, broader consumer budgets are strained by economic uncertainty, high interest rates, and inflation.