Grahame Nelson Partner & Head of KSA Office AL TAMIMI & COMPANY
Can you tell us about Al-Tamimi's impact in the Middle East region?
Al-Tamimi is the largest law firm in the Middle East. It has offices across the GCC and in Jordan, Iraq, and Egypt. In Saudi Arabia, we have three offices: one in Riyadh, which we opened in 2008, one in Jeddah, opened in 2016, and another in Al-Khobar, opened in 2017. How would you assess the mining regulatory framework in KSA under the new Mining Law?
The government has introduced a new mining law with many of the features embedded in the Mining Laws of other countries where there is a lot of mining activity. However, while the regulatory framework is robust, and the Ministry of Industry and Mineral Resources is keen to grow the sector, so far there doesn’t appear to have been substantial foreign investment in the sector.
Saudi Arabia has a wealth of mining resources like those in my home jurisdiction, Western Australia, particularly in semi-precious, metallic, and gold. However, there are a few challenges. One is the mindset; many foreign investors still view Saudi Arabia as an investment destination that is difficult to navigate. Another issue is the lack of up-to-date geological data. What pain points companies should be aware of when entering Saudi Arabia's mining sector?
The main challenge for companies entering Saudi Arabia is getting used to its highly regulated environment. While the government is actively working to make things easier for investors, problems can arise if things go wrong. What might be a small issue elsewhere could take much more time and effort to sort out here, with potentially bigger penalties. But if you stick to the rules, Saudi Arabia is a pretty straightforward business place to do business. The tax rates are lower than in many other countries, and while there are some requirements around hiring Saudis, overall, it is becoming easier for foreign investors.
Steven Little Founder and CEO MASSAR BUSINESS SOLUTIONS
What inspired you to found Massar Business Solutions, and what role does mining have in the company?
We founded Massar to help international companies enter and establish themselves in this thriving market. Initially focused on simplifying market entry, our services have expanded to include comprehensive support, from onboarding staff to managing essential logistics.
Although mining hasn’t always been a focal point, its importance is rising, driven by government support and growing demand for resources like copper and zinc. How does Massar help mining companies?
We provide a three-step support network for mining companies entering KSA. First, we guide new businesses through securing the trade license and documentation. Next, we assist in obtaining mining concessions and managing regulatory requirements. Finally, we help companies register with Ma’aden, the national mining authority, ensuring they meet industry standards. How has Saudi Arabia improved its regulatory processes for new businesses?
Saudi Arabia has made significant strides in updating its regulatory framework, moving toward a more streamlined, digitized system that simplifies access to information. This modernization emphasizes due diligence, ensuring that only committed companies enter the market.
In the mining sector, where demand for resources and skilled personnel is high, companies must account for the time required to establish operations. However, KSA’s evolving regulatory environment is designed to support legitimate, capable businesses as they build a foundation here. What is the typical timeframe for companies to establish themselves in KSA, and is a local partner required for this process?
Typically, establishing a business in KSA takes about three months, depending on the complexity of the setup. Companies need a strong track record to qualify, including audited financials and demonstrated capabilities. While a local partner isn’t mandatory, it can be advantageous for gaining insights and easing the transition. Given the demand for skilled professionals, international expertise is valued, and KSA remains open to welcoming global talent.