Saudi Arabia’s government approved a new mining investment law that aims to accelerate foreign investment in the sector. This comes as part of efforts to diversify its economy away from hydrocarbons.
The Minister of Mining and Industry, Bandar al-Khorayef, stressed that the law is one of the most important incentives to achieve the goals of objectives of the National Industrial Development and Logistic Program (NIDLP) of Vision 2030. He also noted that it contributes to the diversification of national income sources; the development of non-oil revenues; and enhances local production.
The Minister said the strength of the mining and metals industry depends on good governance and transparency. As these factors boost investors’ confidence, guaranteed by the new mining investment system.
It also aims to achieve sustainability in compliance with environmental, health, and safety regulations for workers in the sector and local communities.
The new law will facilitate the establishment of a mining fund to provide sustainable finance for the sector. Besdies, supporting geological survey and exploration programs, according to Khorayef.
The law consists of 63 articles. It is also to make a qualitative shift in the Saudi mining sector and the mineral industry soon. It will help optimize mineral resources in the Kingdom, which, according to experts, have a value of $1.3tn.
The Minister also described the law as a strategic initiative that will boost the mining sector’s contribution to gross domestic product by over $64bn; reduce imports; and create around 200,000 direct and indirect jobs by 2030.
“This will help attract local and foreign investors. Besides, it will eventually raise mining sector participation in gross domestic product (GDP),” he added.