Investments in mineral and metal exploration in Saudi Arabia have increased five-fold since 2020, according to the latest data from the country’s Ministry of Industry and Mineral Resources.
The rapidly increasing rate of spending has been driven by an unprecedented rate of mining investments by foreign interests in the private sector, the ministry explained. The reveal was made in an X post on Oct. 22.
The amount spent in 2024 more than doubled from the sum allocated in 2023, rising from US$133.5 million to US$280.5 million. According to the ministry, Saudi Arabia went from 20th place for mining exploration spending among all nations in 2020 to 12th last year.
Moreover, the amount of active exploration companies in the country has increased 38-fold since 2020. Seventy per cent of exploratory spending has been allocated to grassroots projects in remote areas.
It is notable that the majority of the funding is coming from abroad. Approximately 66 per cent of the four-year total invested in the Saudi prospecting industry came from foreign investors. The remainder was spent by local firms and organizations.
“The increase in the volume of foreign and private investments in the mining sector reflects the growing international confidence in the Kingdom’s investment environment,” said Khalid Al-Mudaifer, Vice-Minister of Industry and Mineral Resources for Mining Affairs, on Oct. 29, “and embodies the success of the comprehensive reforms that have enhanced transparency and elevated the attractiveness of the sector.”
The news coincides with Saudi Arabia and the United States strengthened their mining ties. The country’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, just met with U.S. Deputy Secretary of Energy James Danly in at the Future Investment Initiative conference in Riyadh. They discussed opportunities in the rare earths sector and how the nations could enhance their collaborations in critical minerals and mining technologies.
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Saudi officials tour the globe promoting industry
In October, Saudi officials attended the International Mining and Resources Conference in Sydney. They educated attendees about the growth in their nation’s industry and networked with a group of Australian business executives.
“We discussed opportunities to enhance investment in the mining sector in the Kingdom and cooperation in the areas of exploration, manufacturing, and strategic minerals,” Al-Mudaifer said.
He was also in attendance at the London Metal Exchange Week event in the UK last month. This event attracts about 1,600 influential attendees on average. It has been held annually for 44 years.
“During the session, I emphasized that the regulatory, financial, and technological reforms underway in the Kingdom open up vast horizons for investing in our mineral wealth,” Al-Mudaifer stated, “estimated at more than 9.4 trillion riyals, contributing to building a world-class mining ecosystem.”
Prior to that, a Saudi delegation and officials from the ministry attended the PERUMIN 37 Mining Convention held in Arequipa, Peru.
Despite the increase in local mining investments, mining ties with the United States and positive sentiment from Saudi officials, certain research analysts think that the country will not be capable of catering to demand in the West or lessening Chinese dominance in the critical minerals or rare metals industries anytime soon.
“Many of Saudi Arabia’s mining ventures remain in early or even conceptual stages, and the country still depends on foreign partners for expertise,” said International Institute for Strategic Studies research analyst, Asna Wajid, in July, “such that it may take years for Saudi Arabia, and the Gulf states more generally, to scale up enough to dent Chinese dominance or to fully meet Western demand.”
Nonetheless, Saudi Arabia is known for having vast untapped resources valued at around US$2.5 trillion. They include rare earths, lithium, gold, copper, nickel and other valuable commodities.
Canada’s Royal Road Minerals Ltd (CVE: RYR) (OTCMKTS: RRDMF) (FRA: RLU), Australia’s EV Metals Group and Sierra Nevada Gold Inc (ASX: SNX) are a few companies that recently entered the Saudi prospecting sector.
Lithium, rare earths and copper are increasingly important resources in a post-oil economy, even for hydrocarbon economies such as Saudi Arabia, the UAE and Oman.
Asna Wajid, Research Analyst at IISS–Middle East, explains how these countries are making investments and forging… pic.twitter.com/UdOSRN7nRC
— IISS News (@IISS_org) November 1, 2025
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