Mining Equipment
The drill deal
According to figures provided by the Ministry of Industry and Mineral Resources, Saudi Arabia’s machinery and equipment sector has a market size of US$22 billion and is expected to grow to US$31 billion by 2030. This market, in the mining sector, is mainly served by local representatives and dealers who act as distributors for international OEMs such as Caterpillar, Hitachi, Komatsu, Normet and Epiroc, among others.
To give some details, Bin Shehab is Epiroc’s distributor; Normet and Boart Longyear are represented by AGINCO; larger equipment brands like Caterpillar and Komatsu are represented by Zahid Group and Abdul Latif Jameel Machinery, respectively, while Hitachi is represented by Arabian Trucks & Construction Equipment (ATEC). If we can say something about this segment, it is that it is well-served.
For this segment, the question is not whether there is room for new players, as most are already present in KSA. Instead, the question is how the current mining boom will impact the decisions of these OEMs at an HQ level. Will the traditional business model of relying on local partners continue, or will these OEMs start opening local offices with a direct presence? How important is it to have a well-established local partner versus starting from scratch and investing in building these new partnerships?
Long-term partners
Bin Shehab became Epiroc’s partner in Saudi Arabia after its split from Atlas Copco in 2018. However, as Yasir Hamed, division manager for mining and infrastructure solutions (MIS), explained, Bin Shehab has been operating since 1975 as a contracting company specialized in drilling and blasting. It was not until a few years later that it diversified into a trading division, which is its main focus today in the mining industry. “We have been working with Ma’aden for quite some time, along with other new players entering the Saudi mining market. On the production side, we currently hold the largest market share, supplying equipment and services to about 80% of the country’s mines. Major players like Ma’aden and AMAK depend on us for their operations,” said Hamed.
Hamed noted a shift in the market: “While Saudi Arabia has traditionally been dominated by local players, we are now seeing a wave of international companies entering the Kingdom and partnering with local firms through joint ventures. This creates a win-win situation. Local companies gain global insights, while foreign firms tap into established networks and regional expertise,” he concluded.
“We are a relatively new player in the GCC. We see great potential in Saudi Arabia, especially with the increasing investment in mining exploration. Our goal is to make Comacchio a well-known brand in the region, not just in mining but across the drilling sector.”
Antonio D’Ambrosio, Territory Sales Manager, Comacchio
How do companies like Bin Shehab cope with this wave? For Hamed, localized support is a key differentiator that international OEMs lack. “In the mining industry, clients prioritize on-site maintenance by service technicians over the location of service centers. Maintenance often occurs directly on-site. This localized support differentiates us from international brands that may not have a comprehensive presence in the Kingdom. For example, if a customer has a machine issue and their service center is in Jeddah, it could take days for a technician to arrive at a site located 1,000 km away. Our clients typically cannot afford to have equipment down for more than a day,” he concluded.
Another long-standing local player is AGINCO, which represents Boart Longyear, Normet, Strata, and others. “We began supplying mining equipment in 1985, right when the Kingdom of Saudi Arabia started exploring the Arabian Shield. Our initial focus was on providing equipment and spare parts to the Mahd Ad Dhahab mine, particularly diamond bits, from our long-time partner, Boart Longyear,” said Faisal Sindi, director at the company.
AGINCO, like Bin Shehab, is aware of the influx of foreign companies. However, Wassem Fayyumi, AGINCO’s sales manager, noted that many of these newcomers do not meet the standards that Saudi Arabia should uphold: “We have observed an influx of newcomers to the sector who lack the necessary expertise. They often bring in unreliable equipment from abroad, posing significant risks to the operational efficiency and safety of mines.”
To cope with this, AGINCO has taken on an educational role with its clients, demonstrating that investing in higher-quality equipment and providing a ded- icated training program —despite higher initial costs— offers substantial long-term benefits. “With our warehouses in Jeddah, near the second-largest and busiest seaport in the Middle East, we maintain a significant stock of es- sential equipment, which enables us to meet customer demands without compromising quality,” Sindi added.
Something worth highlighting from AGINCO’s strategy and conversation is its focus on sustainability. Sindi emphasized that KSA’s mineral endowment presents a significant opportunity to diversify revenue streams beyond oil and petrochemicals. This diversification must align with safeguarding the environment for future generations rather than contradicting the goals for which these minerals are expected to be used.
Comacchio, an Italian manufacturer of drilling rigs, aims to establish a presence in Saudi Arabia through a partnership. “We want to partner with local mining operators and distributors. We have been highly selective about who we work with and are looking for partners who share our commitment to innovation and quality. Additionally, we plan to collaborate with local stakeholders, universities, and mining groups to help raise the bar in drilling operations,” commented Antonio D’Ambrosio, the company’s territory sales manager.
Alberto Dalle Coste, general manager for Comacchio, expressed enthusiasm about the opportunities presented by Vision 2030 and Saudi Arabia's estimated mineral wealth of US$2.5 trillion, emphasizing the company's focus on innovation: "Recently, we launched our CX product line, specifically for exploration, with rigs mounted on tracks and crawlers. With recent discoveries like the gold reserves at Mansourah-Massarah, we are looking forward to playing a part in Saudi Arabia's growing mining industry," he concluded.
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