Saudi Arabia has taken another major step in its mission to establish mining as a key pillar of its diversified economy, qualifying twelve companies for the second phase of its Exploration Enablement Program (EEP). The round, valued at approximately SR 664 million ($179.3 million), will see these firms undertake exploration across 38 licence areas covering a total of around 3,000 square kilometres.
Details of the Programme
The initiative aims to attract both domestic and international investors to unlock Saudi Arabia’s mineral wealth, which includes significant deposits of copper, gold, nickel, lithium, and iron.
- The second phase drew 44 applications from 14 firms, highlighting strong investor interest in the Kingdom’s expanding mining sector.
- Collectively, the qualified companies will commit to over 752,000 metres of drilling, alongside geophysical and geochemical work worth tens of millions of riyals.
- The programme also encourages local participation, with approximately 43% of total spending expected to be directed toward local suppliers, contractors, and workforce development.
- Around 63 direct jobs will be created during this round, including positions for both Saudi nationals and international technical specialists.
Why It Matters
- Economic diversification: The move supports Vision 2030’s objective of reducing reliance on oil by developing alternative sectors such as mining and manufacturing.
- Investor confidence: By advancing exploration rounds with global participation, Saudi Arabia is signalling its readiness to become a competitive mining hub in the Middle East.
- Resource potential: With mineral wealth estimated at over SR 9 trillion, the Kingdom sees exploration as the first step in unlocking vast commercial opportunities.
- Local capability building: Emphasis on Saudi employment and local supply chains ensures that exploration benefits extend beyond resource extraction to sustainable economic growth.
Opportunities and Challenges
- From exploration to production: While licence qualification is a milestone, turning exploration results into operational mines will require infrastructure investment, regulatory efficiency, and technical capacity.
- Commodity volatility: Global fluctuations in mineral prices — particularly lithium, nickel, and copper — may influence investment appetite and long-term project viability.
- Environmental and governance standards: As the mining sector scales up, robust ESG frameworks will be crucial to attract institutional investors and meet international expectations.
- Execution complexity: Delivering multiple large-scale exploration programmes simultaneously will demand logistical coordination and the continued strengthening of Saudi Arabia’s mining ecosystem.
What Comes Next
The qualified firms will soon move into detailed exploration work, including drilling, sampling, and geological mapping. Results from this phase will help define future mining concessions and potential development zones. The government is also expected to introduce further rounds under the Exploration Enablement Program, widening opportunities for private investment and technology transfer.
Final Thought
Saudi Arabia’s decision to qualify twelve firms for its latest exploration round underscores the Kingdom’s determination to fast-track its mining transformation. By combining investor incentives with local content and regulatory reform, the country is laying the groundwork for a globally competitive minerals sector. The focus now shifts to execution — turning exploration data into operating mines that will power the next stage of the Kingdom’s economic diversification.