Service Providers
Consolidation and sophistication
The mining sector in Saudi Arabia is largely dominated by three major players, Ma’aden, Saudi Gold Refinery and AMAK, with Ma’aden holding a much larger share. This consolidation not only shapes core mining operations but also influences the ecosystem of service providers. For example, with the current surge in early-stage exploration activities, consulting and contracting firms handling exploration, drilling and geophysics are experiencing a noticeable boom. However, it raises questions about how engineering firms navigate this landscape, especially the new ones.
While many international companies are eager to establish a foothold in Saudi Arabia, does consolidation make the market more challenging than elsewhere? How competitive is the market and is there enough room for everyone, especially newcomers trying to secure contracts?
Mapping out the Easter egg hunt
International firms, alongside local players, have joined forces with either the Ministry of Industry and Mineral Resources or the Saudi Geological Survey (SGS) to survey and map the Arabian Shield. Historically underexplored but considered a “marvel” or “treasure trove” by many, the Shield remained largely unnoticed until 2020. That year, Minister Bandar Ibrahim Alkhorayef, head of the Ministry of Industry and Mineral Resources, with the SGS, launched the Regional Geological Survey Program (RGP) to survey approximately 600,000 km2 of the Arabian Shield over six years, bringing its potential into the global spotlight or more on the radar.
Four years later, GBR interviewed Abdullah bin Moftar Al-Shamrani current CEO of the SGS, who highlighted the progress made so far: “The Arabian Shield covers an area of approximately 630,000 km2, and we have successfully mapped about 85% of the Shield through our recent geological initiatives and acceleration programs. We operate a fleet of 10 airplanes specialized in airborne geophysical surveys, data of which will be integrated with over 85,000 collected stream sediment samples to evaluate mineral resources within the Arabian Shield. The Minister of Industry and Mineral Resources has announced that the estimated value of these resources in the Kingdom of Saudi Arabia is US$2.5 trillion.”
To attract investment, especially foreign, SGS has prioritized the digitization of geological data through the National Geological Database, which is intended as an investor-friendly platform that connects users worldwide to assess geological information for potential licenses. “Over the past three years, it has attracted more than 90,000 visitors, and our geological database is now ranked third in the world,” said Al-Shamrani.
Abdullah Al-Attas, general manager of Geotech Arabia, founded the company in 2017 after retiring from SGS with a vision to serve both the public and private sectors in the Kingdom. Describing Geotech’s role in the consortium, he stated: “Geotech is the technical partner and vital link between the local and international companies in this consortium, ensuring the quality and accuracy of the data collected, overseeing the bidding process, and collaborating closely with SGS to guarantee the project meets high-quality assurance and control standards.”
For Xcalibur Multiphysics, a Spanish company specialized in airborne and marine geophysics, the RGP marked its entry into the Saudi market. Darío Castellanos, the company’s general manager for the Middle East, shared: “The task we took on is huge, about the size of Spain. Right now, we have six aircraft working in the region and have already mapped most of it, leaving just a small percentage of the project to finish, which we plan to wrap up by the end of 2024 or the first quarter of 2025. Beyond data collection, we are also working with the SGS to help interpret the data, and the results will be published on the SGS’s NGD portal.”
The early-stage nature of Saudi Arabia’s mining sector, boosted by government efforts to accelerate exploration, presents abundant opportunities for consultancies and geophysics companies. “There is currently a large focus on mineral exploration and development in line with the clear and ambitious economic diversification foundation of the 2030 vision. While there is a large quantity of historical and recently collected geological and exploration data, the full endowment potential of the country’s mineral resources is yet to be fully determined,” commented Mark Campodonic, corporate consultant at SRK.
Castellanos (from Xcalibur) agrees with Campodonic, emphasizing the sector’s immense potential. He also highlights how this is particularly advantageous for companies like Xcalibur, as their services play a crucial role by providing high-quality data that helps reduce risks and costs for mining projects. “If we continue to succeed here, we are looking to set up an Xcalibur Lab in Saudi Arabia, a research and development hub focused on pushing new tech-forward for our industry,” he concluded.
“Investors and customers demand more in less time. Mining companies face expertise gaps and logistical challenges, struggling with fragmented services that cost extra time and money. An integrated solution is the answer to the future demand.”
Moath Al Rawi, CEO, Argas
Providing investors with information
MSA is a consultancy specialized in geology, environmental services and mining. According to Antony Benham, the company’s regional director, in 2022, MSA partnered with Al-Rushaid Group to establish MSA Arabia in Jeddah to strengthen ties with clients. “We have noted a surge in activity and inquiries about exploration and mining opportunities in Saudi Arabia both from large international producers and juniors alike. The Saudi Ministry of Industry and Minerals has done a remarkable job promoting the country’s geological potential to investors and drawing attention to KSA. I have personally been involved from the early stages, including assisting with the first auction process and identifying prospective areas for investors. Much of our recent work for our clients in KSA has focused on early-stage exploration, including prospectivity analysis, license applications, Mineral Resource Estimations and Competent Person reporting.”
MSA has been collaborating with the SGS and Gold- en Compass on the Accelerated Exploration Program. This initiative, described by SGS CEO Abdullah bin Moftar Al-Shamrani as a “forecast initiative,” is designed to equip investors with detailed geological insights.
By conducting drilling, mapping, and sampling in targeted areas, the program aims to achieve a high level of confidence, providing data with 90% accuracy to support informed investment decisions. “The winner of the auction can immediately begin exploration and, eventually, move on to extraction. This accelerates the transformation of the site into a functioning mine. The Accelerated Exploration Program is part of a long-term tender covering geophysics, geochemistry, and geological mapping. The process begins with geochemical and geophysical analyses, with geological mapping serving as the final phase,” concluded al-Shamrani.
“Xcalibur started operations in KSA in 2022, after winning a Saudi Geological Survey (SGS) bid to map 500,000 km² of the Arabian Shield. The task we took on is huge, about the size of Spain.”
Darío Castellanos, General Manager Middle East, Xcalibur Smart Mapping
The desert stretches as far as the eye can see
The third protagonist of the Accelerated Exploration Program is Golden Compass, founded and led by Meshary Al-Ali. Reflecting on the company’s growth, Al-Ali shared that in just 10 years, Golden Compass evolved from a small consultancy into Saudi Arabia’s largest drilling and mining services provider. Starting with a single diamond rig, the company plans to operate 40 rigs by 2026 and 106 rigs by 2035.
For Al-Ali, the appeal of the Accelerated Exploration Program does not lie in the size of the contract but in the “unique challenges it brought” that allowed Golden Compass to demonstrate its capabilities while navigating complex and demanding exploration conditions. “This project is also tied to our consulting services and laboratory business unit, especially through our partnership with SGS. This collaboration increases our presence in the mining value chain and strengthens our brand,” he commented.
As one of the largest contractors in Saudi Arabia, Al-Ali was asked how the anticipated mining boom might reshape the local market. He noted a significant shift: before 2022, only four companies specialized in mining services were registered in the Kingdom, but today, that number exceeds 22. Al-Ali pointed out that international firms entering the market often face challenges, such as unexpected pricing variations, which could deter investment. Despite these barriers for international players, Al-Ali offered an optimistic perspective at least for those foreign companies that want to establish themselves in KSA. He expects more companies to enter the market in the coming years, increasing competition. “There is a risk that some companies might adopt surface-level changes just to appear competitive. Balancing these dynamics is key to achieving sustainable growth in the local market,” he warned.
Another major contractor in Saudi Arabia is Saudi Canadian Mining Services (SCMS), which has been operating since 1993, providing services ranging from exploration drilling to full-scale mining operations, mainly for Ma’aden. Ahmed AbouZied, SCMS's CEO, said: “The mining and drilling market in Saudi Arabia has a strong demand for services that outpaces the available supply, creating significant opportunities for new companies to enter. Even though there are well-established contractors, the current boom in exploration and mining requires more capacity and expertise. The country’s initiative to build a local workforce through technical programs is setting up Saudi nationals to enter the mining field.”
Roy Dabbous, regional director for the Middle East at the consultancy and engineering firm Hatch, agreed with AbouZied in the sense that the biggest challenge for companies looking to enter Saudi Arabia is the avail-ability and cost of contractors. “Hatch has been in Saudi for a long time, so we know the local market and the established contractors. We have also helped bring in external contractors and get them up to speed with the Saudi market. But even with that, finding qualified contractors for complex mining projects is still a big challenge. To manage that, solid engineering is key. When the contractor pool shrinks, you want to make sure your engineering is rock solid, with everything from material quantities to project specs clearly defined upfront,” he asserted.
“We are opening a new geochemistry lab in Jeddah in Q2 2025 through a joint venture with Golden Compass. With 5,000 m2, it will feature top-of-the-line technology tailored to support KSA’s Vision 2030 by advancing the mining sector.”
Samih Ayadi, Managing Director KSA, SGS
Laboratories
The laboratory segment of Saudi Arabia’s mining industry is served by a mix of local companies, such as Alamri Labs, as well as local and regional branches of international firms, including Bureau Veritas and SGS.
Samih Ayadi, managing director for KSA at SGS, mentioned keeping pace with such rapid growth and, notably, attracting qualified talent, is challenging: “To address this, we are investing in training and skill development for Saudi nationals, ensuring that we meet local demand requirements and actively build a skilled local workforce.”
In partnership with Golden Compass, SGS expects to open a new 5,000 m2 geochemistry lab in Jeddah by Q2 2025 to support Vision 2030 and the development of the mining sector. This will be beneficial for both companies, fostering synergies and collaboration. “Golden Compass has a strong local presence in minerals but has not previously focused on lab testing, so this partnership lets us combine our strengths; SGS’s testing expertise and Golden Compass’ industry connections to create a complementary, non-competitive service. Though we will prioritize Saudi’s market, the lab will be equipped to serve clients across the region,” concluded Ayadi.
Article header image courtesy of Barg Alsaman