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Price Hike Doubles Value of Mineral Wealth in Saudi Arabia

CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani (Asharq Al-Awsat)
CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani (Asharq Al-Awsat)
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Price Hike Doubles Value of Mineral Wealth in Saudi Arabia

CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani (Asharq Al-Awsat)
CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani (Asharq Al-Awsat)

The value of the Saudi mineral wealth, estimated several years ago at about SR5 trillion, has doubled with the increase in the price of minerals, especially gold, copper, and zinc, CEO of Saudi Geological Survey (SGS) Ahmed al-Shamrani has announced.

The numbers boost the value of the Saudi economy, especially in the mining sector, which is currently witnessing the competition of 13 local and foreign companies to win a license for the Umm al-Damar mining site in Medina.

The production of copper and zinc concentrates reached 68,000 tons annually, and about 24.6 million tons of phosphate ore is processed to produce about 5.26 million tons of phosphate fertilizers.

Saudi Arabia is among the top five producers of phosphate fertilizers.

Shamrani explained to Asharq Al-Awsat that previous estimates and expectations indicated that the amount of minerals is equal to SR5 trillion, but these estimates will double the current prices.

The value of zinc rose from SR1,000 during the last period to SR3,000. Similarly, the price of a ton of copper exceeded from SR2500 to SR10,000.

He indicated that the rise in prices would continue with the need for clean energy.

Shamrani added that the geological survey of the Arab Shield seeks to determine the quantities of minerals in Saudi Arabia, which will increase the value.

He pointed out that six aircraft are carrying out the reconnaissance operation at the level of the Arab Shield.

In addition, several companies are monitoring information by taking samples from all Saudi cities, said Shamrani, adding that the authority plans to collect 110,000 samples.

About 35,000 samples were collected recently, which cover approximately nine percent of the total area of the Shield.

Meanwhile, the SGS completed the pre-qualification phase to award the exploration license for the Umm Ad Damar mining project, and the winning bidder will be notified by the end of November.

Shamrani said that 13 local and international companies have pre-qualified for bidding to get exploration licenses.

Umm Ad Damar covers an area of 40 square kilometers and is located 300 km northeast of Jeddah and 25 km northwest of Mahd al-Dhahab Governorate. The site includes several mineral deposits, including copper, zinc, gold, and silver.

Initial indicators during the core excavation had suggested that copper values reached 3.7 percent, while zinc percentage touched 3.6 percent. The results of the samples also showed encouraging amounts of gold.

Shamrani explains that the site is more than 1,000 years old and was used during the Abbasid era to extract zinc and copper to make coins. It was rediscovered in the 1930s and rehabilitated.

Qualified companies will be committed to following environmental and social practices and submitting a social impact plan that includes employment rates and local purchases from the neighboring areas of the site.

This will contribute to the growth of the area in several aspects and the sustainability of the impact of natural resources, which will reflect on the value of the investment and its revenues for the region.

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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.