The Saudi economy is undergoing an unprecedented historical transformation toward diversifying national income sources, driven by Vision 2030, which has set a clear goal — to build a sustainable economy not reliant solely on oil.
At the heart of this transformation lies the mining sector, emerging as the third pillar of the national economy alongside energy and manufacturing — a sector with vast potential capable of reshaping the country’s industrial landscape for decades ahead.
The estimated value of Saudi Arabia’s untapped mineral resources has surged to around USD 2.5 trillion, up from just USD 1.3 trillion a few years ago — a geological and technological leap that reflects the immense wealth buried beneath Saudi soil and reaffirms the Arabian Shield’s position as a world-class mining province.
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Geological Wealth: Focus on the Strategic “Minerals of the Future”
Saudi Arabia enjoys a unique geological richness, ranking among the world’s top nations in strategic minerals, known today as “minerals of the future.”
These minerals form the backbone of clean energy industries, digital technologies, and advanced batteries. Copper and zinc underpin the renewable energy transition, while rare earth elements are critical for producing semiconductors and electric motors. Meanwhile, bauxite serves as the foundation for the aluminum industry.
This diversity of resources is not just a natural blessing — it’s a strategic opportunity to build a globally competitive industrial base in advanced technologies.
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Localizing the Value Chain: From Extraction to Manufacturing
The Kingdom’s vision goes far beyond extracting and exporting raw minerals. The goal is to establish a fully integrated value chain that generates real economic value.
This localization strategy follows two main tracks:
1.Capital-Intensive Heavy Industries – Converting bauxite into alumina and then into molten aluminum for use in advanced sectors such as aerospace and automotive manufacturing. It also includes developing integrated complexes for phosphate processing into fertilizers and specialized products that enhance global food security.
2.Technology-Intensive Knowledge Industries – Localizing the production of rare earth minerals will open the door to manufacturing batteries and electric vehicle motors within the Kingdom, strengthening Saudi Arabia’s position in the new global industrial economy.
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Global Partnerships and a Supportive Regulatory Environment
To achieve this ambitious vision, Saudi Arabia is forging strategic global partnerships that ensure knowledge transfer and technology localization.
Recent years have witnessed major agreements with international companies to develop supply chains for rare earth elements.
The Kingdom is also leveraging advanced technologies such as artificial intelligence (AI) and remote sensing to improve geological survey efficiency and reduce environmental risks.
Complementing this is a modern legislative framework — the new Mining Investment Law — which streamlines licensing processes, provides incentives to international investors, and guarantees sector stability.
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Developmental Impact and Future Challenges
The mining sector carries profound developmental significance, as most projects are located in remote areas — making it a powerful driver for regional development, job creation, and infrastructure expansion.
However, the Kingdom faces challenges that demand meticulous planning — primarily managing environmental impact and ensuring sustainability compliance. Additionally, exploration investments are expected to reach USD 7.4 billion by 2035, necessitating diverse investment partnerships and robust legal guarantees to attract capital.
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Conclusion: The New Industrial Renaissance
Saudi Arabia has set an ambitious target — to raise the mining sector’s contribution to GDP to over SAR 75 billion (USD 20 billion) by 2035.
The Kingdom’s vision for the future is not merely about extracting what lies beneath the earth — but about transforming these treasures into engines of sustainable development and modern industries.
Just as oil fueled the first industrial renaissance, minerals will form the foundation of the second — shaping the new industrial era in the Kingdom’s history.