Latest news with #SR366
Arab News
28-04-2025
- Business
- Arab News
Eastern Province tops Saudi Arabia for FDI, with $97.6bn, says top official
JEDDAH: Saudi Arabia's Eastern Province is leading the Kingdom in attracting foreign direct investment, with the value of its FDI stock standing at SR366 billion ($97.6 billion) — 42 percent of the country's cumulative total, according to a senior official. Speaking at the Jubail Investment Forum 2025, held from April 27 to 28, Minister of Investment Khalid Al-Falih announced that by early 2025, the Eastern Province had issued 5,456 active foreign investment licenses, supporting over 53,000 jobs with a localization rate of 36 percent. Saudi Arabia is aiming to attract $100 billion in FDI a year by the end of this decade, as it seeks to make significant strides in diversifying its economy and reducing dependency on oil revenues in alignment with its Vision 2030 objectives. 'There are more than 600 investment opportunities available in the region, with a total value exceeding SR330 billion,' Al-Falih said, adding that the 'Invest Saudi' platform provides a comprehensive overview of these opportunities to connect local and global investors, according to a post on his ministry's X account. Net FDI inflows to the Kingdom totaled SR15.96 billion in the third quarter of 2024, a 37 percent increase on the second quarter of the year but an annual drop of of 24 percent, according to data from the General Authority for Statistics. In his speech, Al-Falih said that by early 2025, 34 international companies had been granted licenses to establish their regional headquarters in the Eastern Province, as part of Saudi Arabia's initiative to attract more firms to the Kingdom. The licenses cover various sectors, including petrochemicals, energy, and mining, as well as real estate and manufacturing. The minister highlighted the strategic and competitive advantages of the region, including its prime geographic location, which connects it to six neighboring countries, as well as its abundant natural resources, such as fossil and renewable energy. He also highlighted the Ras Al-Khair Special Economic Zone, launched in 2023, which aims to support the value chain of maritime industries with a targeted investment of SR26 billion, according to the minister. 'It aims is to localize up to 50 percent of the main shipbuilding components over the next decade,' the minister said, as per the X post. The Jubail Investment Forum aims to highlight the role of the Eastern Province, particularly the industrial city of Jubail, in supporting Saudi Arabia's Vision 2030. It also seeks to boost the region's investment appeal, showcasing the Kingdom's continuous efforts to cultivate a competitive business environment and provide enticing incentives for investors.
Arab News
25-03-2025
- Business
- Arab News
Saudi Arabia launches incentives package to attract FDI in mining sector
RIYADH: Saudi Arabia has launched a new incentive package to attract foreign direct investments into the nation's mining sector as the Kingdom steadily continues its economic diversification efforts. According to a Saudi Press Agency report, 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. This initiative is also part of the Kingdom's efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Speaking at the Future Minerals Forum in Riyadh in January, Saudi Arabia's Minister of Industry and Mineral Resources Bandar Alkhorayef said that the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the country's broader plans to establish mining as the third pillar of its industrial economy. During the same event, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that the Kingdom is projected to invest SR120 million ($32 million) in 2025 as mining incentives aimed at supporting companies with the right technical expertise. Attracting international investments in the mining sector also aligns with Saudi Arabia's ambitious goal to secure $100 billion a year in FDI by the end of this decade. The latest collaboration between both ministries follows the granting of exploration licenses for multi-mineral sites in Jabal Sayid and Al-Hajjlah. The licenses cover a total area of 4,788 sq. km. and companies are expected to spend approximately SR366 million ($97.6 million) on exploration over the next three years. In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion. In January, the Saudi Cabinet also authorized the Kingdom's Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to implement a project aimed at securing critical minerals for development. In the same month, Saudi Arabia also allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the Kingdom's strategy to attract quality investments, enhance transparency, and support local communities.
Arab News
19-03-2025
- Business
- Arab News
Saudi Arabia opens doors to global mining giants with $97.5m exploration licenses
JEDDAH: Saudi Arabia has granted exploration licenses worth SR366 million ($97.5 million) to both local and international companies for its first mineral belts at Jabal Sayid and Al-Hajjar. These two sites, covering a combined area of 4,788 sq. km, are part of the Ministry of Industry and Mineral Resources' efforts to accelerate the exploration and development of the Kingdom's estimated SR9.3 trillion ($2.48 trillion) in mineral resources. Among the successful bidders, Ajlan and Bros-Norin for Mining secured the license for the southern Al-Hajjar site. A consortium consisting of Artar, Gold and Minerals Ltd Co., and Jacaranda, owned by Australian company Hancock Prospecting, won the license for the northern Al-Hajjar site. Vedanta Ltd, a major Indian mining giant, received the first exploration permit for the Jabal Sayid belt, while a second license for the same site went to a consortium of Ajlan & Bros Mining and Zijin Mining, a Chinese mining giant ranked among the world's top five. Saudi Arabia is focused on making mining a key pillar of its economy, alongside oil and petrochemicals. The Kingdom is home to over 5,300 mineral sites valued at SR5 trillion ($1.33 trillion), and the Ministry of Industry and Mineral Resources is working to unlock these resources to diversify the economy, create jobs, and position the Kingdom as a global mining hub in alignment with Vision 2030. The competition saw 14 companies, both local and international, submit bids after passing the pre-qualification stage. The submissions were evaluated based on technical expertise, proposed work plans, and social and environmental commitments, according to the Ministry's statement. The newly awarded licenses cover two areas within the Jabal Sayid belt, which spans 2,892 sq. km and contains valuable minerals such as copper, zinc, lead, gold, and silver. Additionally, two more licenses were granted for the Al-Hajjar site, covering 1,896 sq. km and rich in natural resources. The ministry emphasized that the involvement of major international mining companies like Zijin Mining, Hancock Prospecting, and Vedanta Ltd. underscores the growing global interest in Saudi Arabia's mining sector and the opportunities it offers through exploration license competitions. It also confirmed that the total exploration investment from the winning companies will surpass SR366 million over the next three years, with an extra SR22 million pledged for community development projects near the mining sites, aimed at creating job opportunities for local residents. Ajlan and Bros-Norin for Mining, which secured the southern Al-Hajjar site, will invest SR209 million in exploration, which includes over 119,000 meters of drilling. Furthermore, they will allocate SR11.2 million for community-focused initiatives, such as building intermediate schools for girls in nearby provinces. The consortium of Artar, Gold & Minerals Ltd., and Jacaranda will invest more than SR62 million in exploration at the northern Al-Hajjar site, including 52,000 meters of drilling. They will also direct SR4.2 million toward local infrastructure projects. Vedanta Ltd., the Indian mining giant, has committed SR33 million for exploration at Jabal Sayid 1, covering 22,000 meters of drilling. In addition, they will invest SR3 million in community development projects, focusing on local employment and training programs. The consortium of Ajlan & Bros Mining and Zijin Mining has pledged approximately SR62 million for exploration at Jabal Sayid 2, including 51,000 meters of drilling. They will also allocate SR4 million for community initiatives, particularly aimed at developing road infrastructure in the surrounding area. In line with these efforts, the Ministry of Industry and Mineral Resources has launched the second phase of the Mining Exploration Enablement Program, in collaboration with the Ministry of Investment, to mitigate risks for companies during the early stages of mining exploration. The Kingdom also offers incentives under the mining investment system, such as allowing foreign companies to fully own operations and providing up to 75 percent funding for capital costs through the Saudi Industrial Development Fund. During the fourth edition of the Future Minerals Forum, held in January, the Ministry of Industry announced the offering of 50,000 sq. km of mineralized belts containing gold, copper, and zinc. This initiative is part of the ministry's efforts to enhance exploration and create an attractive investment environment for local and international mining companies. Applications for these opportunities can be submitted through the Taadeen platform.
