Saudi Arabia has secured nine significant agreements worth SR35 billion ($9.31 billion) during the Global Supply Chain Resilience Initiative forum in Riyadh. These deals are designed to boost global trade links and diversify the nation’s economy.
The agreements focus on key sectors such as copper smelting, aluminum production, and rare earth processing. These initiatives align with the forum’s aim of attracting SR150 billion in export-oriented investments by 2030. Saudi Arabia’s logistics sector has shown remarkable advancement, climbing 17 spots to 38th in the World Bank’s 2023 Logistics Performance Index.
Key Agreements
Among the notable agreements are projects with Vedanta for copper smelting, refining, and rod production; with Advanced Metals Industries Cluster and Tasnee for titanium ventures; and with Hastings for rare earth processing. Additional deals include semi-finished aluminum plants with Red Sea Aluminum and an aluminum foil rolling plant with Tahweel.
Investments also cover zinc smelting with Moxico, a platinum group metals smelter and base metals refinery with Ajlan & Bros and Platinum Group, and lithium carbonate extraction and a copper refinery project with Zijin Group. A deal with GlassPoint to create a cutting-edge manufacturing facility marks the beginning of the world’s largest industrial solar thermal project.
Strategic Vision
Saudi Investment Minister Khalid Al-Falih highlighted the shift in globalization towards regional supply chain clusters. He noted that future supply chains would thrive where raw materials, energy, human resources, and capital converge within a supportive business environment. Companies supported by the Public Investment Fund, like Manara and Alat, play vital roles in mining and digital manufacturing.
Industrial and Mining Growth
Minister of Industry and Mineral Resources Bandar Alkhorayef reiterated Saudi Arabia’s goal to become a global industrial leader. The country is expanding its industrial base, entering new sectors, and tackling global challenges, particularly in mining. The Ministry has also announced that both local and international firms, including Zijin Mining Group and Hancock Prospecting, are qualified to bid for exploration licenses in mineral-rich areas like Jabal Sayyad and Al-Hajar.
Enhancing Supply Chain Resilience
Minister of State Hamad Al-Sheikh emphasized Saudi Arabia’s dedication to bolstering its logistical infrastructure and global supply chain resilience. He outlined several national strategies to attract investments, such as the National Industrialization Strategy and the National Transportation and Logistics Strategy. However, he cautioned against challenges from market shifts, geopolitical changes, and environmental factors.
Launched in October 2022, the GSCRI initiative seeks to position Saudi Arabia as a global supply chain hub by leveraging its strategic advantages. This initiative is a crucial part of the ongoing 28th World Investment Conference in Riyadh.
