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Saudi Deputy Minister of Industry: Govt Support, Int’l Cooperation Essential to Confront Mineral Supply Challenges

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid al-Mudaifer at the Conference. (SPA)
Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid al-Mudaifer at the Conference. (SPA)
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Saudi Deputy Minister of Industry: Govt Support, Int’l Cooperation Essential to Confront Mineral Supply Challenges

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid al-Mudaifer at the Conference. (SPA)
Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid al-Mudaifer at the Conference. (SPA)

Saudi Deputy Minister of Industry and Mineral Resources for Mining Affairs Khalid al-Mudaifer stressed the importance of government support and international cooperation in facing the challenges of the mineral supply chains.

International reports indicate an increase in demand for minerals such as lithium, cobalt, and copper, which requires an increase in investment in mining and processing by $3 trillion by 2030, in addition to the need to provide between 300 and 500 additional gigawatts of energy by 2030.

Mudaifer made his remarks at a panel discussion, "Security of Critical Mineral Supply: China? The West? Saudi Arabia? Or Africa?", at the African Mining Indaba Conference 2024 held in Cape Town, South Africa.

Increased spending

Mudaifer said the central mining region, extending from Africa to West and Central Asia, represents about 41% of the world's countries, boasts 3.5 billion people, or 46% of the world's population. Its economy is worth $9.6 trillion, or 11% of the global economy.

He indicated that the greater region possesses the world’s largest share of mineral reserves and resources, including 89% of its platinum, 80% of its phosphate, 62% of its manganese, and 58% of its cobalt. Africa alone possesses about 30% of the world's resources.

The Deputy Minister added that to enable the region to contribute to meeting the global demand for minerals, it must face the challenges of increasing spending on exploration, as the average global expenditure on exploration is $87 per square meter, while the region's average is $35 per square meter.

It must also develop the infrastructure, such as road, railway, or port network, build the necessary logistics corridors to achieve supply chain flexibility and invest in energy and water to supply mining projects.

Mudaifer asserted that governments must help reduce the risks associated with these challenges and solve them.

Financial incentives

He explained that governments must work to reduce investment risks in the sector by developing the legislative structure and regulations, especially since the implementation period for long-term minerals and mining projects may reach 7 to 9 years from exploration to production.

According to Mudaifer, conducting geological surveys would provide the necessary data for exploration projects, offer incentives, and establish regional centers to support exchanging knowledge, research, and development.

Saudi Arabia aims to become a regional hub for processing minerals and providing services to them, said Mudaifer, adding that the Kingdom enjoys a strategic location linking three continents, has a world-class infrastructure with three industrial cities dedicated to metallurgical industries, and is first in global road connectivity.

Regarding financial incentives, the Saudi Industrial Development Fund (SIDF) provides up to 75% of loans for industrial and mining projects.

Mudaifer stressed that the Kingdom has everything it needs to be a mineral processing hub and an engine for developing the mining sector in the greater region.

Saudi Arabia is ready to share its knowledge and capabilities with Africa and work together to build a prominent position for the greater region on the global stage, stressed Mudaifer, noting that Africa is critical to global supply chains and the energy transition.

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Business

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.