Saudi Gazette report

TORONTO — Minister of Industry and Mineral Resources Bandar Alkhorayef engaged in a series of bilateral meetings with leading Canadian companies to explore knowledge transfer and innovation opportunities in key sectors.

The meetings, attended by leaders from the industry and mineral resources sector, addressed promising fields that contribute to the development of the national industry strategy, including the food and automotive industries, and attracting quality investments to the Saudi mining sector.

The meetings with major Canadian mining and manufacturing companies are part of Alkhorayef’s official visit to Canada alongside industry and mining leaders. The visit aims to enhance industrial and mining cooperation between both countries, explore mutual opportunities in these two sectors, and attract foreign investments to the Kingdom.

Alkhorayef participated in a roundtable meeting organized by the Saudi-Canadian Business Council in Toronto. The meeting was attended by the Saudi-Canadian Business Council chief executive, leaders from the Canadian private sector, and key figures from the Kingdom's industry and mining sectors.

Discussions focused on the Kingdom’s investment environment, including its competitive advantages and the unique opportunities offered by the National Industrial Strategy and the comprehensive mining and mining industries strategy for Canadian companies. The meeting highlighted the incentives and support provided by the industry and mining sectors to facilitate investors throughout every phase of their projects.

During the session, Alkhorayef emphasized the crucial role of the Saudi-Canadian Business Council in advancing trade cooperation and strengthening bilateral relations between Saudi Arabia and Canada. He noted that the council serves as a significant platform for dialogue and collaboration between private-sector leaders, fostering effective partnerships that leverage joint investment opportunities in both countries.

Since 2015, the Saudi-Canadian Business Council has worked to enhance trade, commerce, and investment between Saudi Arabia and Canada. Minister Alkhorayef’s participation in the roundtable is part of an official visit to Canada that aims to bolster industrial and mining cooperation between the two countries, explore shared opportunities, and attract foreign investment to Saudi Arabia.

The minister’s talks with Canadian mining companies focused on investment opportunities in exploration, exploitation, and mineral processing in the Kingdom, which possesses a mineral wealth estimated at around $2.5 trillion. Discussions also covered the localization of the latest responsible and sustainable mining technologies and reviewed the objectives of the comprehensive mining strategy and the national mineral program.

Alkhorayef highlighted the key elements of the investment climate in the Kingdom, which attracts mining companies with a stable legislative environment applying the highest standards of transparency and governance and a strict mining investment law and its executive regulations. The minister also shed light on the package of potentials and incentives provided by the Kingdom to investors, facilitating their business operations in the mining sector.

In this regard, Alkhorayef held discussions with Allied Gold Corporation, a prominent player in mineral exploration; Hatch Ltd, specializing in technical consulting and mining services; and Agnico Eagle Mines, a global leader in mining and the world's third-largest gold producer. He also met with officials from Kinross Gold mining company as well as the asset management team at the Bank of Montreal (BMO) to discuss opportunities for attracting Canadian companies to invest in the Saudi mining sector.

The meetings come in line with ambitious steps that the Kingdom is taking to develop the mining sector and achieve the goals of Vision 2030, aiming to make this sector the third pillar in its industry after oil and petrochemicals. The geological wealth in Saudi Arabia significantly contributes to attracting investors, especially in the minerals sector.

The Kingdom provides geological data spanning 80 years, accessible through a digital platform, aiming to assist investors in making informed decisions during their investment journey. In 2019, the Kingdom revamped and developed its mining investment law on a global scale, positioning itself on the world map alongside mining leaders.

The Kingdom significantly improved its ranking in terms of mitigating mining investment risks from 2018 to 2023, becoming one of the top 10 countries with the lowest legal and financial risks, according to a report by the Global Mining Journal in 2023.

Moreover, the new mining investment law in the Kingdom offers various competitive incentives in the mining and minerals sector, including 75% joint financing for capital expenditure, tax exemptions for five years, and 100% foreign ownership. In April 2024, the Ministry of Industry and Mineral Resources announced the Exploration Empowerment Program (EEP) allocating US$182 million to reduce investment risks in exploration, accelerate innovative exploration, and achieve key objectives in the mining sector in the Kingdom.

Also, Alkhorayef met with Max Koeune, the chief executive of McCain Foods Ltd, a globally leading frozen food company. They discussed the transfer and localization of the latest food manufacturing technologies and opportunities to establish a research and development center in Saudi Arabia to enhance the quality of local production.

The food sector is one of the top 12 promising industrial sectors in the national industry strategy, with the aim of enhancing food security. The Kingdom has achieved important milestones in supporting its food self-sufficiency, with 100% self-sufficiency in dairy products, 68% in poultry, and 52% in fish. Saudi Arabia possesses a strong industrial base comprising 1,500 food factories with investments exceeding SR88 billion.

Alkhorayef met with the chief sales and marketing officer of Magna International, a prominent player in the automotive technology sector, to discuss opportunities for localizing the latest car technologies, electric-vehicle (EV) solutions in the Kingdom, smart safety technologies, and fuel efficiency improvements. They discussed effective partnership with the Saudi National Automotive and Vehicles Academy (NAVA).

The Kingdom is dedicated to advancing the automotive industry by fostering the transfer of knowledge, innovative solutions, and advanced technologies necessary for its growth and development. The Saudi market holds a significant position within the automotive industry in the region, accounting for 40 percent of total sales in the Middle East and North Africa.

Last year saw the licensing of the inaugural Saudi EV brand, "Ceer," and the inauguration of the Kingdom's first EV manufacturing facility, "Lucid," with plans to achieve an annual production capacity exceeding 300,000 vehicles by 2030.