By: Middle east economy

The Saudi Ministry of Industry and Mineral Resources (MIM) has announced a fivefold increase in exploration spending over the past four years, reaching SAR 1.05 billion ($280 million) in 2024. This marks a significant rise from SAR 501 million ($133.6 million) in 2023 and SAR 205 million ($54.7 million) in 2020.

According to the ministry's Mineral Exploration Report, this growth is attributed to increased private-sector investment, expanded geological survey programs, and extensive regulatory reforms. Saudi Arabia has established itself as one of the world's fastest-growing jurisdictions for mineral exploration, with these developments supporting Saudi Vision 2030's designation of mining as the third pillar of the national economy.

Investor confidence in the Kingdom's mining sector continues to grow. In 2024 alone, private-sector spending on exploration licenses surged by 164 percent to SAR 770 million ($205.3 million), compared to SAR 155 million ($41.3 million) in 2020. Government spending through geological programs also saw substantial increases, rising from SAR 11 million ($2.9 million) in 2020 to SAR 180 million ($48 million) in 2024.

The number of active exploration companies has grown from six in 2020 to 226 in 2024, representing a 38-fold increase that reflects growing participation from both local and international mining companies.

Industry and Mineral Resources Vice Minister for Mining Affairs Eng. Khalid Al-Mudaifer stated that Saudi Arabia's mining sector is entering a new phase of accelerated growth and maturity. He noted that progressive legislation, focused national programs, and transparent international partnerships are enabling this unprecedented growth.

Exploration spending per square kilometer has risen from SAR 105 ($28) in 2020 to SAR 539 ($143.7) in 2024, improving the Kingdom's global ranking from 20th to 12th place. This represents a compound annual growth rate of 50 percent, among the highest worldwide.

Notably, over 70 percent of the Kingdom's total exploration expenditures were directed toward grassroots projects in new and underexplored areas, representing the highest proportion among 21 countries included in global comparisons. Advanced-stage projects accounted for the largest share of 2024 spending at SAR 349 million ($93 million), followed by early-stage exploration at SAR 263 million ($70.1 million).

Committed exploration spending across the Kingdom's eight tender rounds reached SAR 1.2 billion ($320 million), with two-thirds of participants being foreign or consortium bidders from countries including Australia, Canada, China, India, Indonesia, and the United Kingdom. The number of auctioned sites has increased dramatically from one site during the first auction round in 2022 to 29 sites in the latest auction.

The sector's geological potential includes preliminary estimates of approximately 67 million ounces of gold, 3.87 million tons of copper, and 5.24 million tons of zinc, with mineral reserves estimated at around 12 million ounces of gold, 60 thousand tons of copper, and 33 thousand tons of zinc.

According to the 2024 Fraser Institute report, Saudi Arabia's mining sector has advanced from 104th to 23rd place globally in investment attractiveness over the past decade. The Kingdom ranked first globally in the pace of improvement of its overall investment environment (2018-2023), second worldwide in the mineral licensing policy perception index, and entered the top 10 countries in mining fiscal policy.