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Arab Gulf States Bolster Mining Efforts to Diversify Economies Beyond Oil

Metals and Mining

Business Honor
23 August, 2024

Strategic partnerships and investments mark a new era of resource development across the region.

The Arab Gulf states are stepping up their mining and mineral processing initiatives as they seek to diversify their economies beyond oil and gas. Bahrain, Qatar, Oman, Saudi Arabia, and the UAE are making significant strides, positioning themselves as key players both locally and on the global mining stage.

Bahrain is currently in discussions with Nornickel to establish a Platinum Group Metals (PGM) refinery, although talks are still in the early stages. Meanwhile, Qatar's sovereign wealth fund has committed $180 million to TechMet, a U.S.-backed investment vehicle focused on securing a sustainable supply of critical minerals and reducing reliance on China.

Oman, with its established copper production capabilities, is moving forward with several significant projects. The Ministry of Energy and Minerals has approved six Final Investment Decisions, including the Mazoon Mining copper ore project and the Al Ghuzayn copper mining project, which aims to process over six million tonnes of copper ore. The state-owned Minerals Development Oman (MDO) is also redeveloping the Lasil and Al Baydha Copper Mines, with production set to begin this year.

In addition, Australia-based Alara Resources has commenced copper concentrate production in Oman, with Trafigura set to offtake all production for the next eight years. This development highlights Oman’s growing role in the global copper market and its broader ambitions in mineral exploration.

Saudi Arabia is also making headlines with its revised mining law, which has sparked a mining boom. The Kingdom has awarded exploration licenses for copper and gold in the Asir Province, reflecting its commitment to expanding its mining sector.