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Saudi Arabia Showcases Mining Investment Opportunities at LME Week in London 

Saudi Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer speaks at the event in London. (SPA)
Saudi Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer speaks at the event in London. (SPA)
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Saudi Arabia Showcases Mining Investment Opportunities at LME Week in London 

Saudi Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer speaks at the event in London. (SPA)
Saudi Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer speaks at the event in London. (SPA)

Saudi Arabia’s Ministry of Industry and Mineral Resources (MIM) underlined the Kingdom’s growing role as a global mining hub at London Metal Exchange (LME) Week 2025, reported the Saudi Press Agency on Friday.

During an event titled “Saudi Day at LME Week”, the Ministry highlighted Saudi Arabia’s growing role as a global mining hub, attracting investments across the entire value chain - from exploration to processing and production. These efforts are in line with Saudi Vision 2030, which positions mining as the third pillar of the national economy alongside energy and petrochemicals.

Speaking at the event, Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer reviewed the reforms implemented by the Kingdom in the mining sector and its untapped mineral wealth, estimated at over SAR9.4 trillion (USD2.5 trillion). He underscored Saudi Arabia’s commitment to building strong global partnerships in mining and minerals.

He outlined the Kingdom’s most significant achievements in the sector, including updating the legislative framework, launching pioneering national programs such as the National Minerals Program, expanding exploration activities, enhancing regulations, and supporting private-sector participation - all aimed at attracting qualitative investments and reinforcing the Kingdom’s collaboration with international partners in developing the strategic industry.

Mining is not merely a resource sector, but a core driver of Saudi Arabia’s economic transformation, he stressed, noting that under Vision 2030, the Kingdom is seeking to position itself as a preferred partner for global investors, innovators, and companies pursuing a responsible and resilient future in minerals.

The value of mineral resources has increased from SAR5 trillion to SAR9.4 trillion, with exploration activities expanding significantly, Al-Mudaifer revealed. The number of exploration companies rose from six in 2020 to 133 in 2023, and total exploration spending reached SAR102 billion in 2024, reflecting the Kingdom’s firm commitment to advancing mineral resource investments.

Saudi Arabia’s progress in the mining sector has gained wide international recognition. The Kingdom ranked 23rd globally in the 2024 Investment Attractiveness Index issued by Canada’s Fraser Institute, securing first place worldwide in political stability, 5th in socio-economic agreements, and 7th in environmental regulations.

The event featured a series of discussions with leading global mining figures. Maaden chief executive Bob Wilt discussed the company’s transformation into one of the world’s top ten mining companies and its ambitious expansion plans. Vale chief executive Gustavo Pimenta shared insights on building resilient cross-border partnerships, while Alcoa chief executive William Oplinger highlighted the company’s longstanding partnership with Saudi Arabia and future collaboration prospects. London Metal Exchange chief executive Matthew Chamberlain addressed the growing global demand for minerals and stressed the need to align investment, production, and consumer confidence.

A panel discussion on the future of mineral investment, moderated by former BBC news anchor David Eades, brought together key leaders including chief executive of Vale Base Metals Shaun Usmar; BMO managing director Rahim Bapoo; Standard Chartered global head of metals and mining Richard Horrocks-Taylor; and Dr. Kwasi Ampofo from BloombergNEF. Discussions centered on addressing financing challenges, geopolitical complexities, and the race to secure supply chains for critical minerals.

An accompanying exhibition showcased the strengths and innovations of the Kingdom’s mining and metals sector, highlighting abundant resources, a modern regulatory framework, advanced infrastructure, integrated value chains, and the use of AI-powered geophysical technologies, automation, energy efficiency, emissions reduction, recycling, and green metals.

The exhibition served as a practical platform for technical demonstrations, bilateral meetings, and partnership-building opportunities.

The event concluded with a forward-looking discussion on the upcoming 5th annual Future Minerals Forum (FMF), to be held in Riyadh from January 13 to 15 under the theme “Minerals: Confronting Challenges for a New Era of Development.”

The conference, organized by the Ministry of Industry and Mineral Resources, will gather ministers and executives from leading global mining companies such as BHP, Ivanhoe Mines, Rio Tinto, Ma’aden, Zijin, and Barrick Gold, reaffirming its position as a global platform for industry leaders in the mining sector.

Saudi Arabia’s participation in LME Week 2025 underscores its rising influence in the global minerals economy and its commitment to fostering international collaboration, innovation, and sustainable investment as demand for critical resources continues to accelerate worldwide.

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Business

From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
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From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)

Saudi Aramco's financial results and Saudi Arabia's third-quarter budget performance report, released on the same day, revealed a divergence between the company's rising profits and declining government oil revenue recorded in the state budget.

While Aramco's net income rose 34.2% during the first nine months of 2026 to SAR 380.6 billion ($101.5 billion), government oil revenue fell 1.3% over the same period and declined approximately 23% in the third quarter alone.

Comparing the two indicators does not necessarily imply a direct relationship between the company's profits and the revenue flowing into government coffers. Corporate earnings are recognized under different accounting principles from those governing the calculation and collection of government revenue.

The financial relationship between Aramco and the government also involves multiple channels, including taxes, royalties, dividends and offsetting settlements, each with its own payment and collection schedule.

Aramco's Profits and Cash Flows

Aramco reported net income of SAR 380.6 billion ($101.5 billion) for the first nine months of 2026, compared with SAR 283.6 billion ($75.6 billion) in the corresponding period last year, an increase of 34.2%.

Adjusted net income reached SAR 368.9 billion ($98.4 billion), up from SAR 302.3 billion ($80.6 billion) a year earlier.

However, the increase in earnings was not accompanied by a comparable rise in cash generated by the company's operations, according to its financial report.

Cash flow from operating activities totaled SAR 355.8 billion ($94.9 billion), compared with SAR 357.6 billion ($95.4 billion) in the same period last year, remaining largely unchanged.

Aramco attributed this to changes in working capital, which refers to funds tied up in day-to-day operations, including outstanding sales receivables, inventories and amounts owed to or by the company.

These movements limited the extent to which higher earnings translated into operating cash flow.

Meanwhile, free cash flow increased to SAR 221.6 billion ($59.1 billion), compared with SAR 217.3 billion ($57.9 billion) a year earlier.

This metric measures the cash remaining after capital expenditures are deducted from operating cash flow. It benefited from a reduction in capital expenditures to SAR 134.2 billion ($35.8 billion), from SAR 140.3 billion ($37.4 billion) in the comparable period.

Oil Revenue in the State Budget

On the other side of the equation, Aramco's earnings growth was not mirrored by a corresponding increase in government oil revenue.

Ministry of Finance data showed that oil revenue fell 23% year on year in the third quarter to SAR 116.5 billion ($31.1 billion), compared with SAR 150.8 billion ($40.2 billion) in the same period last year.

Over the first nine months of 2026, oil revenue totaled SAR 446.3 billion ($119 billion), down from SAR 452.4 billion ($120.6 billion) in the corresponding period of 2025, representing a relatively modest decline of approximately 1.3%.

By contrast, non-oil revenue increased 8% during the nine-month period to SAR 412.5 billion ($110 billion), helping lift total budget revenue by 3% to SAR 858.9 billion ($229 billion).

In the third quarter alone, non-oil revenue rose 20% to SAR 142.6 billion ($38 billion).

The growth in non-oil revenue therefore helped cushion the impact of declining oil revenue on the government's overall income.

Third-quarter expenditure totaled SAR 343.4 billion ($91.6 billion), against revenue of SAR 259.1 billion ($69.1 billion), resulting in a quarterly budget deficit of approximately SAR 84.3 billion ($22.5 billion).

Why Don't the Figures Move in the Same Direction?

Part of the divergence between Aramco's financial results and government budget revenue stems from the different nature of the figures themselves.

The company's profits are recognized according to its accounting results, while budget figures reflect government revenue actually collected during the reporting period.

Moreover, the government's financial returns from Aramco's operations flow through several channels, including taxes, royalties and dividends, with differences in when these amounts become due and when they are paid.

Accounting profits do not necessarily translate into cash inflows during the same period. Liquidity is affected by the timing of receivables collection, inventory movements and operating payments.

This distinction is also evident in financial transactions between Aramco and the government, which are not limited to direct cash payments but include the settlement of certain mutual obligations through offsets.

For example, Aramco's cash income tax payments fell to SAR 2.8 billion (approximately $747 million) in the third quarter, compared with around SAR 51 billion ($13.6 billion) in the second quarter, as amounts due to the company from the government were settled by offsetting them against its tax obligations.

Under this mechanism, amounts owed to one party are deducted from what that party owes the other, rather than transferring the full amount in cash.

Such offsets affect both the volume of cash payments and the timing of financial transfers between Aramco and the government.

Consequently, government oil revenue does not necessarily move in the same direction as Aramco's financial results, since each is influenced by different factors and accounting mechanisms.

While the company's profits reflect its financial performance during a given period, government revenue recorded in the budget depends on the taxes, royalties and dividends due to the state, as well as the timing of their collection and settlement.

Aramco's profits may therefore increase during a period when government oil revenue is declining.

Overall, the results demonstrate Aramco's continued ability to generate strong profits and maintain substantial cash flows, supporting its capacity to sustain investment and distribute dividends to shareholders, foremost among them the Saudi government.

At the same time, growth in non-oil revenue underscores the importance of diversifying budget income sources to mitigate fluctuations in oil revenue, broaden the sources supporting public finances and advance the Kingdom's economic transformation.

Business

Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
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Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)

Cryptocurrencies briefly dipped on Wednesday as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than $300 million backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will ‌put them on ‌a solid legal footing and allow them to thrive.

Bitcoin ‌briefly ⁠touched a six-week ⁠low before recovering to trade roughly flat by 0715 GMT at $78,070. Ether traded at $2,292, up just 1%.

Bitcoin has fallen by around 41% since hitting record highs above $122,000 in October 2025, bringing the value of the broader crypto market to around $2.61 trillion, according to CoinMarketCap.

The market has lost some $300 billion in value in the last month alone, as deepening concern about future returns from AI and the ⁠strain of rising borrowing costs pushed investors into less risky ‌assets such as government bonds and ‌safe-haven currencies.

Sentiment has also been hurt by the $6 billion hack of the Binance platform last ‌week, the largest heist in history.

On Tuesday, Binance customers had withdrawn ‌a net $4.72 billion from the world's largest cryptocurrency exchange since it reopened following the hack at the weekend.

"The market may be re-evaluating the risk-reward profile of crypto assets. On one hand, the string of security incidents is forcing investors to re-examine the ‌industry's security infrastructure and custody risks," Tim Sun, senior researcher at HashKey, said.

"On the other hand, potential shifts in ⁠the US political landscape ⁠could stall the progress of structural crypto legislation and institutional framework development. All of these factors leave the crypto market facing strong headwinds," he said.

US President Donald Trump, who vowed to make the United States the "crypto capital of the world" during his 2024 presidential campaign, has made his own forays into digital assets, with the launch of his "Trump" meme coin, plus his family's World Liberty Financial crypto platform, among other ventures.

The sector has seen sweeping reforms in the almost two years since Trump returned to office, including lighter enforcement and the creation of a strategic bitcoin reserve.

Washington has also allowed for easier access to banking and exchange-traded products and passed a federal stablecoin law that could help these assets move into the mainstream payments and money transfer systems.

Business

Saudi Non-Oil Sector Expands for Seventh Straight Month

A view of Riyadh, Saudi Arabia. (Getty Images file)
A view of Riyadh, Saudi Arabia. (Getty Images file)
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Saudi Non-Oil Sector Expands for Seventh Straight Month

A view of Riyadh, Saudi Arabia. (Getty Images file)
A view of Riyadh, Saudi Arabia. (Getty Images file)

Saudi Arabia’s non-oil private sector continued to expand in October, with business activity and output growth accelerating despite a decline in the Riyad Bank Purchasing Managers’ Index (PMI) to 54.0 from 55.3 in September, according to data compiled by S&P Global.

The seasonally adjusted index remained above the neutral 50-point threshold for the seventh consecutive month, signaling continued improvement in operating conditions. Although it eased from September’s seven-month high, October’s reading was the second-highest since February.

Output growth accelerated to a strong pace from the previous month, supported by improving underlying demand and increased sales and marketing efforts. New orders also continued to rise, although more slowly than in September and at a rate below the survey’s historical average.

Domestic demand remained the main driver of growth, while export orders declined for the eighth consecutive month, with the contraction accelerating.

Survey respondents cited shipping disruptions, higher transport and insurance costs, and competitive market conditions as factors weighing on overseas sales. About a quarter of firms reported a decline in export orders in October.

Employment increased for the fourth consecutive month, although hiring remained modest and slowed from September. Backlogs of work rose slightly for the second straight month, reflecting higher sales and some delays in supplier deliveries.

Supplier delivery times improved only marginally, marking the weakest improvement since April, as disruptions to maritime routes continued to affect shipments. Some businesses consequently increased their reliance on domestic suppliers to secure production inputs.

Cost pressures intensify

Cost pressures mounted at the start of the final quarter, with purchase prices rising at their fastest pace in six months, driven by higher shipping, insurance, raw material and energy costs. Staff cost inflation also reached its highest level since February.

Despite rising input costs, the rate of increase in selling prices slowed to a nine-month low as companies offered larger discounts amid intensifying competition. Nevertheless, selling prices continued to rise at a strong pace.

Commenting on the findings, Naif Al-Ghaith, chief economist at Riyad Bank, said the non-oil private sector demonstrated resilience in October, supported by sustained domestic demand, stronger business activity and continued employment growth.

He noted that the PMI’s position above the 50-point threshold indicated improving operating conditions despite its decline from the previous month.

Al-Ghaith explained that faster output growth reflected Saudi businesses’ ability to respond to domestic demand through operational efficiency, marketing initiatives and increased sales activity.

New orders maintained strong growth, although demand had become more selective, he added.

Continued hiring, inventory accumulation and purchasing activity reflected companies’ readiness to meet demand, while expectations for output over the coming year remained only mildly positive and below the survey’s historical average.