Ahlan Wa Sahlan Fi Al-Saudiyah

Saying that Saudi Arabia was a closed market for international companies until Vision 2030 began reshaping the national economy and mining sector would be misleading. Many companies featured in this report have been operating in the country long before Vision 2030 was even a concept. However, it is fair to say that Vision 2030, along with all the government incentives to foster greenfield exploration, has placed Saudi Arabia firmly on the radar of the global mining industry.

For instance, in the last six mining tender results announced by the Ministry of Industry and Mineral Resources many foreign junior companies that previously focused on other jurisdictions have now turned their attention to Saudi Arabia and won a tender with a local partner. Examples include Royal Road Minerals, previously in Colombia; Tinka Resources, and Kuya Silver, which have spent years working in Peru.

More recently, in November, the Ministry announced the qualified companies competing for exploration licens-es in KSA’s first mineralized belts at the Jabal Sayid and Al Hajar sites. Among the selected qualified bidders are several international companies, including First Quantum Minerals, McEwen Mining and Zijin Mining Group. At the same time, established companies cannot be overlooked. Ma’aden continues to drive its agenda across its different business units, while AMAK has actively participated in these bidding rounds and formalized partnerships with other juniors like Power Metal Resources.

The pipeline of projects, boosted by government incentives, has created a hype, which is already shaping into a mini boom: “I moved here three and a half years ago after spending years working across Africa, where mining is big business, backed by cutting-edge tech and mineral endowment. But here in Saudi, things have taken on a whole new energy, thanks to the government’s Vision 2030 […] Each year, you see more investment and a stronger commitment from both local and international players, making Saudi Arabia a really exciting place for mining right now,” commented Ahmed AbouZied, the new CEO of Saudi Canadian Mining Services (SCMS), a company that has been active since 1993.

Right now, Saudi Arabia is like honey to bees. However, challenges remain in this process of transformation, and the government is taking steps to ensure that this honey stays within its hive rather than being taken elsewhere. Business setup and the Saudization process

Each company interviewed for this report had a different market entry approach. While some companies are entirely foreign-owned in exploration, most new entrants to Saudi Arabia establish themselves through consortiums or joint ventures with local partners. For example, ANS Exploration and Greyridge are juniors pursuing a 100% foreign ownership model. Conversely, Moxico Resources and Gold and Minerals are advancing their projects with local partners. In the equipment sector, most international OEMs collaborate with local distributors, as you will see in detail later.

On the service provider front, while many companies have been operating in the region, primarily from the United Arab Emirates, several have either recently opened offices in Saudi Arabia or are planning to do so. For junior companies, having a local partner is not mandatory. Is it advisable though?

Rémi Piet, co-founder and senior partner at Embellie Advisory, a consultancy specialized in risk assessment and mitigation, suggests it often is: “International mining companies can register in Saudi Arabia and work independently, winning auctions or claiming first come, first served licenses. However, building partnerships with local Saudi consortiums can prove to be a smart move. The future of the Saudi mining development also depends on the participation of more Saudi consortiums and families in the growth of the sector by building value-creating joint ventures with the most innovative and experienced international mining companies.”

For Adam Ginster, founding partner for the Middle East region at Hoffmann Reed, a global executive search and leadership advisory firm, the energy transition and the growing focus on green metals have increased the demand for talent. However, this demand has outpaced supply, creating a talent deficit and posing challenges in building the workforce necessary to achieve decarbonization goals. “This is evident in KSA, especially in mining, where the gap has driven up demand for international executives with extensive global mining experience, particularly in regulatory areas. Since the mining sector in KSA is still developing, having expertise in greenfield and brownfield projects is crucial,” he said.

Talent shortages are a shared challenge in more mature mining jurisdictions. One key difference in Saudi Arabia is that Vision 2030 emphasizes the development of society as a central pillar. A crucial aspect of this vision is Saudization, a government scheme promoting employment opportunities for Saudi nationals, under which companies are required to meet specific quotas for hiring Saudi employees. “From a business standpoint, Saudi Arabia’s approach is practical. By inviting foreign partners to tap into its mineral boom, the Kingdom expects solid returns on its investments in infrastructure and resources. Localization is not just encouraged; it is a critical strategy. This expectation of commitment and integration is natural, as Saudi Arabia aims to ensure that the mining boom benefits the local economy as much as it does international players,” commented Hannes Storch, VP of metals and chemicals processing at Metso.