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Arab News
4 days ago
- Business
- Arab News
Mining, entertainment sectors eye 100bn in investments by 2030
RIYADH: Saudi Arabia is steadily progressing in its journey to attract $100 billion in foreign direct investments by the end of this decade, with the Kingdom heavily focusing on securing funds in high-growth sectors, experts have said. Saudi Arabia's Vision 2030 economic diversification program aims to transform its economic landscape, including attracting foreign direct investment and increasing FDI's contribution to the Kingdom's gross domestic product. To facilitate and increase FDI, in August Saudi Arabia approved an updated investment law, aimed at boosting transparency and easing the process of investing in the Kingdom. Speaking to Arab News, Emilio El-Asmar, partner at Oliver Wyman's Government and Public Institutions practice – India, Middle East and Africa, said that the mining sector is one of the most promising industries that will help the Kingdom achieve its FDI goals by 2030. He also pointed out that the ongoing regulatory reforms happening in Saudi Arabia are making the Kingdom an attractive destination for foreign investments. 'Saudi Arabia's National Investment Strategy, central to Vision 2030, aims to transform the Kingdom into a globally competitive, innovation-driven economy,' said El-Asmar. Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Emilio El-Asmar, partner at Oliver Wyman's Government and Public Institutions practice – India, Middle East and Africa He added: 'Mining and metals are among the most promising areas, as the Kingdom has $2.5 trillion worth of untapped resources, including gold, copper, lithium, and rare earth elements, which are vital to energy transition and global industry. Regulatory reforms and integrated industrial zones are opening this frontier market to international investment.' The comments from the Oliver Wyman official come after Saudi Arabia launched a new incentive package to attract foreign direct investments into the nation's mining sector. The Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry, the Saudi Press Agency reported in March. Ryan Alnesayan, partner at Arthur D. Little in the Middle East region, also echoed similar views and said that the mining sector could become a game changer in Saudi Arabia's economic diversification journey. 'The new mining law and exploration incentives are attracting serious interest, and the Kingdom is positioning itself as a global mining hub with reliable data, infrastructure, and long-term demand,' said Alnesayan. El-Asmar further said that Saudi Arabia's Ras Al-Khair and Wa'ad Al Shamal offer integrated infrastructure, rail and port access, and proximity to downstream processing, making them investment-friendly destinations for international entities. 'These ecosystems support refining, smelting, and metal fabrication. A pipeline of investable projects, from exploration to processing, is backed by national institutions including the Public Investment Fund and industrial champions,' said the Oliver Wyman official. Global players are investing in everything from gaming and digital media to smart cities and AI. Ryan Alnesayan, partner at Arthur D. Little in the Middle East region He added: 'As global supply chains seek secure mineral sources, Saudi Arabia offers geopolitical neutrality, long-term offtake potential, and value-add opportunities. Its location between Africa, Asia, and Europe gives investors access to regional growth markets.' In January, speaking at the Future Minerals Forum, Saudi Arabia's Minister of Industry and Mineral Resources Bandar Alkhorayef said the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the Kingdom's broader plans to establish mining as the third pillar of its industrial economy. In May, a report released by the General Authority for Statistics revealed that net FDI into Saudi Arabia stood at SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months. GASTAT also added that this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third. This development comes after Saudi Arabia rose to 13th place in Kearney's 2025 Foreign Direct Investment Confidence Index, published in April. This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy. Kearney added that the ranking reflects the nation's bold, reform-driven approach to building an internationally competitive, future-ready economy. Other crucial sectors El-Asmar also outlined other crucial areas that could drive FDI into Saudi Arabia in the coming years. According to the Oliver Wyman official, sectors including pharmaceuticals, biotechnology and petrochemicals are also expected to see foreign funds pour into the Kingdom. He added: 'In petrochemicals, Saudi Arabia is expanding beyond crude oil into speciality chemicals, high-performance plastics, and packaging, backed by integrated feedstock and logistics infrastructure.' El-Asmar said that Saudi Arabia is ranked second among G20 countries in digital competitiveness, and the Kingdom has strong infrastructure, forward-looking regulations, and digital competitiveness capable of drawing FDI in AI, cloud, cybersecurity, smart city tech, fintech, and health tech. 'Incentives include regulatory sandboxes, IP protections, and access to a growing consumer and enterprise market, making the Kingdom attractive for global tech firms and startups,' said El-Asmar. Alnesayan also highlighted the role of technology and entertainment sectors in materialising Saudi Arabia's FDI goals. 'Entertainment and tech reflect Saudi Arabia's new growth story. Global players are investing in everything from gaming and digital media to smart cities and AI. These sectors are fueling job creation, innovation, and a dynamic consumer market,' said the Arthur D. Little official. El-Asmar agreed that the entertainment sector is central to Saudi Arabia's diversification and FDI strategy, reflecting cultural openness and rising domestic demand. 'With a population of 35 million and rising demand for premium experiences, the Kingdom is seeing growth in cinemas, theme parks, live events, and content production. Major international brands are entering the market, supported by co-investment and giga-projects like Qiddiya,' he said. RHQ program and FDI Alnesayan believes that Saudi Arabia's regional headquarters program is emerging as one of the key drivers of FDI in the Kingdom. 'The RHQ Program is not just about relocating offices — it's about anchoring decision-making in Riyadh. That brings investment, talent, and deeper regional integration. We've already seen over 600 companies commit, and the momentum is accelerating,' he said. Saudi Arabia's regional headquarters program offers incentives such as a 30-year corporate income tax exemption, withholding tax immunity, and various support services for international businesses. Some of the noted firms that relocated their headquarters to the Kingdom are Northern Trust, Bechtel and Pepsico from the US, and IHG Hotels and Resorts, PwC, and Deloitte from the UK. El-Asmar also highlighted the importance of the RHQ program and said that Saudi Arabia's location — at the crossroads of Europe, Asia, and Africa — makes it an ideal base for regional operations. Potential challenges Despite all these positive developments, experts also outlined some of the challenges Saudi Arabia could face in achieving its FDI targets within the stipulated timeline. 'The fundamentals are strong, but challenges remain — global volatility, talent gaps, and the need for ongoing regulatory clarity. But the Kingdom is addressing these head-on through reforms, infrastructure investment, and strategic partnerships that reduce risk and increase investor confidence,' said Alnesayan. El-Asmar said that foreign investors need predictability, and to address this, Saudi Arabia has launched the Investor Confidence Protection Mechanism and Investor Council, alongside legal reforms including English-language documentation and digital licensing portals. 'High operational costs and complex procedures persist in some sectors. Special Economic Zones, tax incentives, and digital services are helping to reduce these barriers and simplify market entry,' said El-Asmar. He concluded: 'While these challenges are real, Saudi Arabia's strategic reforms, long-term vision, and favorable location continue to make it one of the world's most promising emerging FDI destinations.'
Trade Arabia
10-04-2025
- Business
- Trade Arabia
Tajikistan welcomes UAE investment partnerships in energy
Sulton Rahimzoda, Chairman of the State Committee on Investments and State Property Management of the Republic of Tajikistan, affirmed that his country offers promising investment opportunities, particularly in renewable energy and green industries, in line with global efforts toward sustainable development and carbon reduction. Speaking to the Emirates News Agency (WAM) on the sidelines of the AIM Summit 2025 in Abu Dhabi, Rahimzoda noted that Tajikistan holds significant untapped hydropower potential – ranked 8th globally – but only 5 per cent of this capacity is currently utilised. He added that solar energy is another investment priority, with Tajikistan enjoying more than 300 sunny days annually, making it ideal for clean energy projects amid technological advances and lower production costs. Rahimzoda emphasised his country's commitment to leveraging its natural and human resources within a sustainable development framework, welcoming strategic partnerships with friendly nations -- especially in energy, industry, tourism, agriculture and advanced technologies. He highlighted Tajikistan's rich reserves of strategic minerals essential to the global green economy transition, including 10 out of 12 key minerals, and noted the country is among the world's top producers of antimony. With its combination of green electricity and mineral wealth, Tajikistan is well-positioned to host low-emission, value-added industries, especially as global demand grows for green-certified products and carbon tax exemptions. Rahimzoda called on UAE investors to explore Tajikistan's opportunities, particularly in renewable energy, organic agriculture and light industries. He cited the national aluminium company as a prime example of green industry leadership, being one of the top five global producers of "green aluminium" using clean energy. Regarding the business environment, he noted that the government has introduced more than 240 investor guarantees, including over 110 tax and customs incentives. Investors also enjoy flexibility in choosing cooperation models—whether direct partnerships, investment contracts, or joint ventures. Investment agreements with the government carry legal weight, as they require parliamentary ratification, demonstrating the state's commitment to investor protection and support. Rahimzoda revealed that Tajikistan is currently implementing its National Investment Strategy through 2040, with a focus on attracting green investments, strengthening private sector partnerships, and enhancing the ease of doing business. On regional and international cooperation, he underlined Tajikistan's strategic location along the historic Silk Road and its shared borders with China, Afghanistan and Iran, positioning it as a hub for major regional projects. He pointed to the Rogun Hydropower Project, one of the region's largest with a planned capacity of 3,600 megawatts, which will support water security, reduce emissions, and supply clean power locally and regionally. Rahimzoda also highlighted CASA-1000, a joint clean energy project with Kyrgyzstan, Afghanistan and Pakistan, expected to begin electricity transmission by 2027. Additionally, Tajikistan is working with Uzbekistan on two joint hydropower stations along the Zarafshan River, reinforcing economic integration and regional cooperation.
Yahoo
09-04-2025
- Business
- Yahoo
Saudi mining giant Ma'aden eyes rare earths partnership
Saudi Arabian mining company Ma'aden is in the process of selecting an international company to establish a rare earths processing partnership, aiming to position the kingdom as a critical minerals hub, reported Reuters, citing three sources familiar with the matter. The company is evaluating potential collaborations with MP Materials from the US, China's Shenghe Resources, Australia's Lynas Rare Earths or Canada's Neo Performance Materials. Ma'aden plans to finalise its decision by the end of June. The companies will develop plans for both a rare earths processing facility and a subsequent magnet production facility within Saudi Arabia. The chosen partner will collaborate with Ma'aden to study the most effective methods for mining and processing the kingdom's abundant mineral reserves. The study is expected to be completed by December. Saudi officials nearly doubled the estimated value of the kingdom's mineral reserves to $2.5trn (SR9.38trn) last year, mainly due to the inclusion of rare earth elements. While Ma'aden and MP Materials have refrained from commenting, Lynas has acknowledged its ongoing discussions with emerging rare earths companies globally. Among the contenders, Shenghe and Neo have experience in rare earths processing and magnet production. The refinement of rare earths, a group of 17 chemically similar metals, is a complex and environmentally challenging process. The search for more efficient methods is ongoing, given the intricate separation required for these metals. China's dominance in the rare earths refining industry, controlling nearly 90% of the global capacity, underscores the strategic importance of Saudi Arabia's move. Saudi Arabia's focus on mining aligns with Crown Prince Mohammed Bin Salman's Vision 2030, which aims to diversify the economy beyond its traditional reliance on oil. The country is ramping up its presence in the global minerals supply chain through major investments and strategic partnerships. Under its National Investment Strategy, it plans to invest $9.32bn in smelting projects with India's Vedanta and China's Zijin. The kingdom's sovereign wealth fund backs US-based electric vehicle maker Lucid, which opened a Saudi plant in 2023. The country has also signed memorandums of understanding with Hastings Technology Metals and Critical Metals for rare earth and lithium projects. In February 2025, Ma'aden secured $1.25bn from its first Islamic bond issuance, a key step in its $12bn expansion plan through 2030. "Saudi mining giant Ma'aden eyes rare earths partnership" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Arabian Business
09-04-2025
- Business
- Arabian Business
UAE Ministry of Investment, UNCTAD partner to boost global investment, advance sustainable development
The UAE Ministry of Investment and UN Trade and Development (UNCTAD) have signed a Memorandum of Understanding (MoU) to strengthen cooperation in investment policymaking, research, and sustainable economic development. The partnership underscores the Emirates' commitment to harbouring an investment-friendly environment and reinforcing its role as a global business hub. It also aligns with UNCTAD's commitments to support countries to effectively access the benefits of a globalized economy. UAE's investment ecosystem growth Through the collaboration with UNCTAD, the UAE is advancing the vision outlined in the National Investment Strategy 2031, strengthening its position as a premier global investment hub by capitalising on its world-class infrastructure, ease of doing business, progressive regulatory frameworks and strategic geographical location. The two will establish a framework for cooperation to enhance investment policymaking, facilitate capacity-building initiatives, and promote sustainable economic growth. Key areas of collaboration include knowledge sharing, joint research, event participation, advisory support, and aligning efforts with sustainable development goals. Mohammad Abdulrahman Alhawi, Undersecretary at the UAE Ministry of Investment, said the MoU is in clear alignment with the ambition to position the UAE as a premier global investment destination by cultivating an investment-friendly ecosystem that delivers tangible opportunities and outcomes. 'Through our collaboration with UNCTAD, we will further advance our broader National Investment Strategy and attract high-impact investments that drive long-term economic growth,' he said. Nan Li Collins, Senior Director of Investment and Enterprise at UNCTAD, said the partnership will support UNCTAD's mission to create a more inclusive and sustainable global investment landscape. 'By working with the UAE Ministry of Investment, we can strengthen capacity-building initiatives and advance economic policies that benefit global investors and developing economies alike,' Li Collins said. With significant investments and partnerships in high-growth areas such as artificial intelligence, renewable energy, and digital transformation, the Emirates continues to position itself at the forefront of innovation and economic diversification.
08-04-2025
- Business
UAE and UNCTAD Join Forces to Bolster Global Investment and Sustainable Growth
In a move reinforcing its global investment ambitions, the UAE Ministry of Investment has signed a Memorandum of Understanding (MoU) with the United Nations Conference on Trade and Development (UNCTAD) to deepen collaboration in investment policymaking, research, and sustainable economic development. The agreement aims to establish a framework for strategic cooperation, including knowledge exchange, joint research, advisory support, and capacity-building initiatives. It also supports both parties' commitment to advancing the UN Sustainable Development Goals (SDGs) through inclusive and innovation-driven investment policies. Signed by Mohammad Abdulrahman Alhawi, Under-Secretary at the UAE Ministry of Investment, and Nan Li Collins, Senior Director of Investment and Enterprise at UNCTAD, the MoU aligns closely with the UAE's National Investment Strategy 2031. It further strengthens the country's position as a premier global investment hub, leveraging its robust infrastructure, investor-friendly regulations, and strategic location. 'This MoU supports our ambition to build a future-ready investment ecosystem that attracts high-impact investments and drives long-term economic growth,' said Alhawi. 'Through this partnership, we will advance our broader national strategy and reinforce the UAE's global competitiveness.' Collins echoed the sentiment, noting the partnership's potential to shape more inclusive and sustainable investment landscapes: 'Working with the UAE allows us to support global investors while advancing development-oriented economic policies.' This strategic alliance reflects the UAE's growing leadership in emerging sectors such as artificial intelligence, clean energy, and digital transformation. It highlights the country's ongoing commitment to economic diversification and innovation, positioning it as a vital player in shaping the future of global investment. News Source: Emirates News Agency
