RIYADH — An authoritative annual evaluation of mining investment risks has recently acclaimed Saudi Arabia for its outstanding performance in creating a conducive environment for mining investments.
The World Risk Report 2023, which incorporates MineHutte Risk Ratings, designates Saudi Arabia as both a regional and global leader in the mining sector.
From 2018 to 2023, the Kingdom experienced a marked ascent in its capability to mitigate risks associated with mining investments, landing it in the top ten nations with the least legal and financial vulnerabilities. This notable progress coincides with a series of comprehensive reforms aimed at bolstering mining and mineral investments following the inauguration of Saudi Arabia’s mining and mineral strategy in 2018.
Emma Beatty, the Chief Operating Officer and research director at MineHutte, remarked on the exceptional legislative transformation in Saudi Arabia. She emphasized the country’s dedication to establishing a significant presence in the global mining landscape, as well as its commitment to the expansion of its domestic mining sector.
The escalating demand for critical minerals, essential for decarbonization, is prompting investors to explore new territories while being cognizant of the associated risks. The World Risk Report offers a detailed assessment of investment risk in the global mining industry, drawing on data from 11 Hard Risk metrics and insights from over 600 professionals acquainted with the specific regions.
This report serves as an essential resource for mining entities and investors to benchmark investment risks across 121 jurisdictions, evaluating five critical categories: Legal, Governance, Social, Fiscal, and Infrastructure.
In the Investment Risk Index (IRI), Saudi Arabia has achieved the second-largest global advancement. The report repeatedly acknowledges the Kingdom as an emerging favorite for mining investments, thanks to its comprehensive and appealing legislative infrastructure. Notably, the legal category has seen a 20-point increase over the past five years.
Consequently, Saudi Arabia has risen to the ranks of a premier mining jurisdiction, as indicated by its placement among the top 20 global jurisdictions. Its efficient permitting process is recognized as the second-best globally, and the Kingdom’s Fiscal Hard Risk score reflects significant improvements, ranking it among the top 10 countries for fiscal risk reduction worldwide.
With its substantial reforms over the last five years, Saudi Arabia has recorded the most significant progress of any location, setting the stage for other nations in the region to emulate its strategies for enhancing regulatory frameworks and mining industries.
