In a remarkable shift within its economy, Saudi Arabia’s non-oil sector has eclipsed the 50% mark of the nation’s GDP for the first time in 2023. It surged from a 47.4% share in 2015 to 51.7% over the span of eight years.
Following the inception of the ‘Vision 2030’ program in 2016, the Kingdom has undergone substantial advancements, leading to the transformation of its business landscape and the birth of new industries. Ambitious mega projects such as NEOM and the Red Sea project are a testament to Saudi Arabia’s commitment to reducing its reliance on oil. The non-oil GDP, based on 2018 chain-linked measures, saw a year-on-year increase of 4.2% in Q4 2023, with previous quarters also showing robust growth.
However, the mining sector experienced a slight downturn in 2023, with a decrease in value added due to a drop in crude petroleum and natural gas mining. Despite this, other mining and quarrying activities experienced a 5.7% increase, indicating potential areas of growth.
With an estimated mineral wealth of SR9.4tn ($2.5tn), the Saudi Arabian mining sector is poised for significant expansion, which is crucial for the country’s economic diversification initiatives. Notably, the discovery of extensive gold reserves near the Mansourah-Massarah mine is set to drive further investment. The state-owned Saudi Arabian Mining Company (Ma’aden) is at the forefront of this development, with ambitious plans to enhance its mineral production and contribute to making mining a key economic pillar.
The government’s resolve to propel exploration and mining activities is evident through its strategic partnerships and financial incentives aimed at supporting mineral exploration and reducing reliance on oil revenues. This includes signing MOUs with countries like Egypt, Russia, and others, along with offering SR685m ($182m) in incentives to exploration companies.
The ‘Accelerated Exploration’ initiative, launched in 2022, is designed to stimulate the mining sector’s growth by fast-tracking the exploration process and attracting investment. Adding to this momentum, the Ministry of Industry and Mineral Resources recently unveiled six new mining investment opportunities, inviting bids for exploration licenses across over 940km² of territory, which includes sites rich in precious metals like gold, copper, zinc, lead, and silver.
