The Kingdom of Saudi Arabia has been commended for its outstanding environment for mining investments, as indicated by the most recent annual analysis of investment risks in the mining sector by MineHutte and Mining Journal Intelligence, as reported by the Ministry of Industry and Mineral Resources.
The past half-decade has seen a marked enhancement in the Kingdom’s ability to mitigate risks associated with mining investments, positioning it within the top ten nations for minimal legal and financial hazards.
The World Risk Report 2023, which incorporates the MineHutte Risk Ratings, showcases Saudi Arabia as a leading mining jurisdiction on both regional and international stages.
These accolades are a direct result of comprehensive reforms within the sector, initiated with the unveiling of the country’s mining and minerals strategy in 2018, crafted to draw investments in mining and minerals.
MineHutte, a prominent provider of resources for the mining industry worldwide, compiles the report. It enables businesses to understand and manage legal and regulatory risks with its extensive database covering over 100 mining codes.
The tool furnished by MineHutte is instrumental for companies and investors to assess investment risks across 121 different jurisdictions, evaluating aspects such as legal frameworks, governance, societal impacts, fiscal policies, and infrastructural factors.
“Saudi Arabia’s exceptional ranking in the World Risk Report underscores a compelling incentive for investors to explore ventures within the Kingdom,” remarked Khalid Al Mudaifer, Vice Minister for Mining Affairs at the Ministry of Industry and Mineral Resources.
He further explained that in accordance with Vision 2030, the Ministry is committed to positioning the mining sector as a foundational element of the nation’s industrial economy, presenting a wealth of opportunities for investment.
“With its distinctive appeal in the mining and minerals industry, Saudi Arabia is seeking long-term partnerships to foster local value and sustainable development,” Al Mudaifer highlighted.
Emma Beatty, Chief Operating Officer and Research Director at MineHutte, praised Saudi Arabia’s legislative strides in the mining sector, noting the Kingdom’s distinction in its regional and global reform efforts.
Beatty underscored that the country’s determination to be a leading force in the global mining industry and its dedication to nurturing the domestic mining sector are palpable through its legislation. These reforms are designed to entice foreign investments and are in line with the Saudi economic blueprint for the mining industry.
“The legislation acts as a potent tool to realize the country’s economic aspirations for the mining sector,” Beatty affirmed.
As a testament to its progress, Saudi Arabia has demonstrated the second-largest improvement globally on the Investment Risk Index (IRI), being repeatedly cited in the report as an increasingly preferred destination for mining investments due to the robust and appealing framework established through its legislation and regulations.
One of the most notable advancements has been in the legal domain, where the risk of an investor losing the economic benefits from a mineral discovery has decreased by 20 points in the last five years. Consequently, the Kingdom now boasts a position within the top-tier mining jurisdictions for investment, with survey respondents placing it among the top 20 globally when it comes to perceived overall risk.
The country’s efficient permitting process is another highlight, ranking second-highest globally, and its Fiscal Hard Risk score has seen improvement, securing Saudi Arabia a spot among the top 10 nations for fiscal risk mitigation.
Saudi Arabia’s notable progress over recent years has not only made it the foremost improver in the mining sector but also served as a model for neighboring countries looking to bolster their regulatory frameworks and mining industries.
With its unwavering dedication to expanding its mining industry, the Kingdom is poised for ongoing advancement and attracting even greater investments in this sector.
