By: Gulf business

Saudi Arabia’s mining industry must embed cost discipline and transparency to secure long-term value and deliver on Vision 2030, Alvarez & Marsal (A&M) said in a new report.

In its latest Middle East publication, Optimizing Cost Control in the Industrial Sector, the global professional services firm outlined a four-part strategy to strengthen financial resilience.

The framework includes activity-based budgeting, real-time cost visibility platforms, structured cost review meetings, and cost capability building.

A&M said the approach could reduce operating costs and embed cost insights into decision-making across the sector.

Saudi Arabia’s mining sector is backed by SAR246bn in committed investments and untapped resources valued at around $2.5tn, according to government data.

The industry is expected to become the kingdom’s third economic pillar under Vision 2030, alongside oil and petrochemicals.

“Saudi Arabia’s mining sector is now central to the kingdom’s economic transformation,” said Alexander Shvets, MD, Infrastructure & Capital Projects – Metals and Mining, Alvarez & Marsal Middle East.

“Building on this momentum with embedded cost visibility and performance tracking will help operators to achieve global competitiveness and long-term value creation.”

Renat Akimbitov, MD at A&M Middle East, added: “Control is not just a finance function – it’s an operational discipline. In mining, where complexity and capital intensity are high, real-time cost visibility and team capability are what turn strategy into measurable results.”

Sector reforms and growth prospects

Saudi Arabia has already enacted reforms to streamline licensing and established the Saudi Geological Survey to attract investors.

Activity in gold, phosphate, bauxite and rare earth exploration is accelerating, positioning mining as a catalyst for wider industrial growth.

From extraction to industrial empowerment

The kingdom’s mining ambitions extend beyond resource extraction, with investments in smelting, refining and processing aimed at reducing import reliance and strengthening industrial self-sufficiency.

Mega-projects such as NEOM and the Red Sea Project are also driving demand for locally sourced raw materials.

Global stakeholders, A&M said, increasingly expect mining operations to demonstrate cost discipline, local sourcing and data-led innovation. Meeting these expectations could help Saudi Arabia position itself as a forward-looking, globally competitive mining hub.