Critical Minerals as Strategic Assets...Saudi Arabia Leads Major Transformation of Global Value Chains

The International Mining Conference in Riyadh. (Asharq Al-Awsat)
The International Mining Conference in Riyadh. (Asharq Al-Awsat)
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Critical Minerals as Strategic Assets...Saudi Arabia Leads Major Transformation of Global Value Chains

The International Mining Conference in Riyadh. (Asharq Al-Awsat)
The International Mining Conference in Riyadh. (Asharq Al-Awsat)

At a time when geopolitical and economic changes are accelerating, and global competition for critical minerals are intensifying, supply chains are undergoing a profound reshaping of their traditional rules.

This transformation is driven by an unprecedented surge in demand, coupled with mounting constraints on supply.

Asharq Al-Awsat held an interview on the sidelines of the International Mining Conference - currently under way in Riyadh under the patronage of Custodian of the Two Holy Mosques, King Salman bin Abdulaziz- with Nikolaus Lang, Managing Director and Senior Partner at Boston Consulting Group, Global Leader of the BCG Henderson Institute, and the Global Vice Chair for the firm’s Global Advantage Practice, along with Marcin Lech Managing Director and Partner at the firm.

The two figures offered an in-depth assessment of the global critical minerals landscape. They also addressed the role of artificial intelligence, Saudi Arabia’s position within these supply chains, and the key risks and opportunities shaping the sector’s outlook.

Supply Chains

Nikolaus Lang said that global minerals supply chains are being redrawn because demand is rising sharply at the same time as supply is becoming more constrained, concentrated, and politicized. Demand for critical minerals linked to energy transition, electrification, and advanced manufacturing is expected to grow 2–3× by 2040, with markets such as EVs and batteries alone driving multiples of today’s lithium, nickel, cobalt, copper, and rare earth demand.

Yet supply remains structurally tight: in several key minerals, 20–30% of future supply required by 2035 has not yet been identified or financed, while processing is heavily concentrated—often in a single country.

He added that the concentration is now translating directly into geopolitical risk. Recent years have seen export restrictions by China on gallium, germanium, and rare earth-related technologies, Indonesia’s nickel export bans, and rising resource nationalism in parts of Latin America.

For investors, this has changed the mindset fundamentally. Critical minerals are no longer viewed as cyclical commodities, but as strategic assets exposed to policy, trade, and security risk, with higher price volatility and longer development timelines challenging traditional project economics.

Artificial Intelligence

Lang stated that artificial intelligence is becoming one of the most important enablers in the race for critical minerals, precisely because the industry faces three simultaneous pressures: the need to expand the project pipeline, shorten development cycles, and improve success rates while controlling costs and risks. Traditional mining models simply cannot deliver the scale and speed required for the energy transition without fundamentally higher productivity.

In exploration, AI is already changing the odds. Machine-learning models can now analyze geological, geophysical, satellite, and historical drilling data simultaneously, identifying targets that would take human teams years to assess. Leading miners report that AI-supported targeting can increase discovery success rates by 2–3× and materially reduce exploration costs. This matters when global exploration pipelines have declined by nearly 40% since 2012, even as demand accelerates.

AI is also becoming critical in risk management—arguably the most underestimated lever. Advanced analytics can integrate commodity prices, supply-chain bottlenecks, permitting timelines, water and energy availability, and geopolitical signals to stress-test projects before capital is committed. In a world of volatile prices and policy-driven shocks, this ability to anticipate risk earlier is increasingly central to investment decisions.

That said, adoption is not without challenges. Many mining companies still struggle with fragmented data, legacy systems, and skills gaps, while regulatory uncertainty and concerns around explainability and ESG compliance slow deployment. AI only works when it is trained on high-quality, interoperable data—and much of the sector is still catching up on basic digital foundations.

Saudi Wealth

On the position of Saudi Arabia in the global critical minerals supply chain, Marcin Lech said that the Kingdom today sits at an inflection point in the global critical minerals supply chain. While it is not yet a dominant upstream producer across most critical minerals, it is rapidly emerging as a credible mining and processing ecosystem builder, with a strategy that spans domestic exploration, competitive processing, downstream demand, and international partnerships.

On the fundamentals, the Kingdom already has scale, he stated. Saudi Arabia is a top-five global producer of phosphate rock and among the top ten globally by phosphate reserves, while bauxite is another established pillar. More importantly, the exploration story is accelerating: recent work has highlighted new rare earth potential, alongside new gold and copper discoveries.

Lech added that what sets Saudi Arabia apart is the ecosystem it has deliberately put in place. The Mining Investment Law materially improved transparency, licensing timelines, and investor protections. That shift is reflected externally: in the Fraser Institute’s Annual Survey of Mining Companies, Saudi Arabia has been cited as one of the most improved jurisdictions globally over recent years, with a Policy Perception Index ranking now in the mid-20s globally, ahead of many longer-established mining regions. This is a meaningful signal for international investors.

Economically, Saudi Arabia brings competitive advantages few peers can match – with meaningful processing cost advantage versus major demand centers, driven by low-cost energy, industrial infrastructure, and scale.

Strategically, the Kingdom’s ambition is to become a critical minerals hub, not just a mining jurisdiction—connecting feedstock from Africa and Central Asia with processing, financing, and downstream demand. Saudi Arabia’s geopolitical neutrality and ability to work with both Eastern and Western partners is a real differentiator, particularly as supply chains fragment and investors seek diversification away from single-country dependence.

Risks and Chances

Marcin Lech said that looking ahead to 2025, the biggest risk for the global minerals sector is not demand — demand is clearly there — but whether supply can be mobilized fast enough in an increasingly fragmented world. We are entering a period where export controls, localization requirements, carbon border measures, and resource nationalism are becoming more common.

While many of these policies are understandable from a national security perspective, their cumulative effect risks undermining project economics, increasing volatility, and discouraging long-term investment at exactly the moment when the world needs more capital, not less.



Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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Saudi Arabia Ranks First in GCC, 12th Globally in 2026 Marsh CFA Institute Global Pension Index

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The Kingdom of Saudi Arabia ranked first among GCC states and 12th globally out of 55 pension systems in the 2026 Marsh CFA Institute Global Pension Index. The Kingdom's overall score climbed to 73.2 out of 100, up from 67.6 in 2025, continuing an upward trajectory that has seen it advance 15 places since 2022.

The Kingdom achieved notable gains across the index's three primary pillars. In the Integrity sub-index—which evaluates regulatory governance, member communication, and participant rights—Saudi Arabia scored 83.5, up 9.3 points from the previous year, securing an A rating, the highest classification in the category.

The Kingdom's Sustainability score increased to 61.2 points from 54.6, while Adequacy rose to 77.2 from 75, maintaining an overall B grade, SPA reported.

With its 73.2 score, Saudi Arabia outperformed established international pension systems categorized within the B band, including the United Kingdom, Canada, France, Germany, Belgium, Ireland, and Hong Kong, while leading all participating Gulf nations.

The index noted that Saudi Arabia's advancement was driven by sustained governance reforms, regulatory enhancements, data modernization, and stronger safeguards for scheme beneficiaries.

These results reflect ongoing modernization within the national social insurance ecosystem led by the Social Insurance, aimed at expanding benefit adequacy and safeguarding long-term fiscal sustainability.

Published in collaboration with the Monash Centre for Financial Studies, the 18th edition of the Marsh CFA Institute Global Pension Index evaluates retirement systems covering two-thirds of the world's population across more than 50 sub-indicators.


China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
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China’s January-September Fiscal Revenue up 5.1% y/y

People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)
People look at their phones in a touristic area in Beijing, China, 22 October 2026. (EPA)

China's fiscal revenue increased 5.1% in the first nine months of 2026 from a year earlier, following a gain of 5.7% in the January-August period, the finance ministry said on Friday.

In the January-September period, fiscal revenue totaled 17.2 trillion yuan ($2.58 trillion), with tax revenue growing 6.1% year-on-year and non-tax ‌revenue expanding ‌1.2%.

Fiscal expenditure was up ‌1.0% ⁠on the year ⁠in the period, slowing from a rise of 1.2% in the first eight months.

China has accelerated local special bond issuance this year and plans to front-load part of its 2027 ⁠quota, finance ministry official Zhao Zeyong ‌told a press ‌conference on Friday.

Net special bond issuance ‌from January to September reached 3.56 trillion ‌yuan, accounting for 81% of the annual quota, and issuance for September was at 633.5 billion yuan, up by 214.8 billion yuan ‌from the same month last year, Zhao said.

Revenue from ⁠government ⁠land sales fell 27.9% on the year for the period from January to September, narrowing from a fall of 28.6% in the first eight months of this year.

The property sector downturn that began in mid-2021 has eroded land-sale revenue, long a crucial funding source for Chinese local governments.


Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

 A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
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Asian Stocks Mixed Ahead of Weekend as Tech Recovers Early Losses

 A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Thursday, Oct. 22, 2026, in Tokyo. (AP)

Asian equities were mixed Friday as tech firms managed to claw back some early losses on bargain-buying at the end of tough week for the sector, while traditional safe havens benefited from a generally cautious mood.

Since AI-linked companies hit record highs in June, their equity prices have been pummeled by concerns they were overvalued, their huge outlays on infrastructure and hardware might not return a profit and, more recently, their servicing costs were spiraling.

That has combined with an Iran war-fueled surge in oil prices to more than $100 that has ramped up inflation, forced central banks to hike interest rates and sent government borrowing costs to multi-decade highs.

Strong earnings in past quarters have been able to temper many of the concerns, but analysts pointed out that investors are demanding better and better results to justify their backing.

Earnings from Facebook-parent Meta and chip equipment maker Lam Research this week have beaten forecasts but seen their shares dive.

"Even positive news is being ignored," said FOREX.com's Fawad Razaqzada.

"Strong results are no longer enough if the outlook fails to match an already demanding valuation. Investors are becoming much less forgiving."

The rush out of tech has, however, boosted industrial companies overlooked for much of the AI boom, with the Dow rising this week while the Nasdaq and S&P 500 retreated.

The general losses in New York filtered through to Asia in the morning, but some markets staged a comeback as the day progressed.

Seoul -- which was at the forefront of the AI boom and has led recent losses -- shed more than two percent after the open but was up at the close.

Chipmaker and market heavyweight SK hynix -- a major target amid the waves of buying and selling -- ended up more than four percent. However, its US shares fell more than eight percent Thursday after it said it was scrapping plans for an initial public offering for its US subsidiary Solidigm, citing "market conditions and share price trends".

There were also gains in Hong Kong, Shanghai, Sydney, Singapore and Jakarta.

Tokyo's Nikkei 225, which is also heavily weighted to tech, ended in the red, though well off earlier lows. Wellington, Mumbai and Manila were also down. Taipei was closed as Typhoon Champi neared Taiwan.

London, Frankfurt and Paris dropped in the morning.

Safe havens benefited, with the yen rallying against the dollar, helped by strong Japanese inflation data that boosted bets on another interest rate hike.

The currency has struggled against the greenback in recent years owing to the wide interest rate gap between the United States and Japan, as well as worries about the Asian giant's fiscal situation.

US Treasuries were also in demand, with yields falling from two-decade highs.

"Markets are looking for safe havens as the now familiar fears over AI and the tech sector, alongside ever higher oil and energy prices are powering a move back into bonds," said National Australia Bank's Gavin Friend.

"Regardless of the continued climb in oil prices, investors are increasingly looking for safe havens with the recent pullback in US Treasury yields getting a sizeable push," he said, adding that two- and 10-year Treasury yields were at one-month lows.

And Carol Kong at Commonwealth Bank of Australia said the yen could benefit further if the tech trade continued to deteriorate.

Oil prices added to the dour mood on fresh Middle East worries. Brent extended Thursday's spike and headed back towards $115 a barrel for the first time since May, while WTI topped $100.

The latest rally came after Iran threatened to hit US bases in the region if its military continued to escort ships through the Strait of Hormuz.