Arab News, Monday, Jun 05, 2023 | Thul-Qidah 16, 1444
Saudi Arabia seeks Japanese investment in fast-growing mining sector
Saudi Arabia:
Backed by recent reforms in the mining sector, Saudi Arabia sought the
participation of Japanese firms in its massive exploration activities that aimed
to attract SR40 billion ($10.6 billion) in investment.
As part of the Invest Saudi initiative, top
ministry officials of the Kingdom and Japanese business leaders met in Tokyo
between May 31 and June 2 to discuss ways to accelerate mutually beneficial
partnerships and investment opportunities.
The Saudi-Japan Mining and Minerals Meeting
provided a comprehensive overview of Saudi Arabia’s ambitious mining strategy
while highlighting the significance of its National Investment Strategy.
The officials also gave an overview of the Saudi
system for mining licenses, outlining various exploring opportunities available
for medium- and long-term investments.
The three-day event also held a workshop jointly
organized by the Kingdom’s Ministry of Investment, the Ministry of Industry and
Mineral Resources and the Japan Oil, Gas and Metals National Corp., also known
as JOGMEC.
It focused on supporting Japanese companies to
invest in the Kingdom’s mining sector and its supply chain.
Rich in natural resources, Saudi Arabia has
undertaken several policy initiatives in recent years to make its mining sector
attractive to private investors.
The Kingdom’s strategic location and robust
infrastructure also offered lucrative opportunities for firms to strengthen
their global supply chain.
In March, Saudi Arabia’s industry ministry issued
27 new mining licenses, totaling 2,314.
The Kingdom has been striving to transform the
mining sector into the third pillar of the national strategy. This effort
involves substantially exploring its natural resources across 5,300 sites valued
at SR5 trillion.
It boasts over 20 distinct mineral types,
including gravel, gold, iron, copper, granite and marble.
The Kingdom also features 35 specific geological
formations, known as mineral belts, with abundant mineral deposits.
In March, Saudi Arabia announced the indicative
timelines for the bidding cycles of five new mineral exploration opportunities.
These sites are Ar Ridaniyah, Umm Hadid, Bir Umq, Jabal Sahabiyah and
Muhadad.
These initiatives align with Saudi Arabia’s Vision
2030, which aims to elevate the mining sector’s contribution to the gross
domestic product to $64 billion by 2030.
Furthermore, the industry ministry’s monthly
bulletin recently pointed out that the total volume of industrial investments in
Saudi Arabia amounted to SR1.42 trillion as of December 2022.