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Saudi Arabia to Boost Economic Growth through Mining and Metals, Aligned with Vision 2030

Metals and Mining

Business Honor
28 April, 2025

Government investments and strategic projects like NEOM are set to drive mining demand.

S&P Global has forecast the economy of Saudi Arabia in the coming years to be even more reliant on the mining and metals industry. This is consistent with Saudi Arabia's Vision 2030 to try to limit how reliant its economy is on oil and try to diversify its economy instead.

Saudi Arabia is endowed with the metals at the core of the world's energy transition, including copper, nickel, and lithium, as well as strategic minerals like phosphate for food security. The kingdom is thus well-positioned since the global demand for these resources continues to increase.

While S&P Global holds a bearish outlook for the world mining industry as the cost increases and pressure from inflation grows, it notes that the Saudi Arabian mining industry will fare better than global trends because of upcoming government plans, massive resource reserves, and huge investments in infrastructure and mega-projects. Saudi Arabian mining firms are being assisted by the government, including the newly issued Mining Investment Law to upgrade the industry and lure more investments.

The Saudi Arabian government is also hoping that the mining sector will make greater contributions to the country's GDP. The industry is set to pump $75 billion in 2030 from $17 billion in 2024. The Public Investment Fund, which will utilize its investments in terms of pumping $40 billion a year locally in projects, is also prepared to sustain local demand for metals such as steel, aluminum, and copper. Regional mega projects like NEOM and the Red Sea Project are also likely to propel local metal consumption.

The strategic position of Saudi Arabia, in proximity to Europe, Asia, and Africa, presents a competitive edge in exporting minerals. Development of the sector, though, will need continuous efforts to adopt concrete regulations and entice foreign investment. Saudi Arabia, with an estimated $2.5 trillion of undiscovered mineral deposits, plans to emerge as a global mining player.