Mining sector posts 400% growth, draws SR250 billion investments, says official

Saudi Gazette report JEDDAH – Saudi Arabia’s mining sector has registered a growth rate of around 400 percent with investments worth over SR250 billion. This was stated by Deputy Minister of Petroleum and Mineral Resources Sultan Shawli at the Jeddah Economic Forum (JEF), which concluded at Jeddah Hilton on Thursday. Presenting a working paper on “Promising investment opportunities in the mining sector,” he said more than 2,000 investment licenses have been issued so far in this vital sector. “Our future vision is to double the investments so as to enhance contributions to the national revenues. Hence, the ministry is working to issue more mining exploration licenses in a way serving the interests of the present generation and the generation to come through framing balanced policies,” he said, adding that these policies are aimed at achieving goals for realizing the best social and economic outcome by optimum utilization of the mining resources. Shawli said investors in the mining sector have been instructed to create direct and indirect jobs for Saudi citizens. “There are a total of 800 companies and establishments that have obtained mining concession in the Kingdom.” According to Shawli, the Mining Investment Law gives 100 percent investment opportunity for private sector companies and the role of the ministry is only that of an organizer and supervisor for issuing licenses. The ministry is doing this in coordination with the concerned government agencies by addressing the environmental issues and social problems in regard to mining. Speaking at a session on Thursday, Fahd Al-Rasheed, managing director and CEO of Emaar King Abdullah Economic City, said they were not affected by the current challenges facing the region’s economy due to a sharp fall in oil prices. “The work on KAEC is going on vigorously and some 40 industrial projects have been launched. Also there are plans to establish another 170 industrial projects over the coming 10 years.” The concluding session of the forum was on “Financing,” in which Dr. Nadir Mohammed, head of the World Bank office in Riyadh, and Dr. Ahmad Al-Khulaifi, deputy governor of the Saudi Arabian Monetary Agency for research and international affairs, spoke.