The Capital of the “Super Region”
Reshaping the mining agenda
How will Saudi Arabia, the Middle East, and the broader region shape the mining industry over the next decade? Traditionally, from a commodity perspective, the region has been a synonym for oil and gas rather than mining. However, KSA is reshaping this perception.
The Middle East is a complex region that includes different socio-political and economic realities, however, a new concept has emerged in the mining industry over the last few years a concept that could very well steer the course of the energy transition: the “Super Region,” encompassing Africa, the Middle East, and Central and South Asia.
The term was coined by the consulting firm Wood Mackenzie and introduced in a whitepaper presented at the Future Minerals Forum in 2024, which highlights that approximately US$400 billion in CapEx by 2030 will be needed for mining across the critical minerals value chain to solve the supply deficit and keep global temperature rise within the 1.5ºC threshold above pre-industrial levels. To meet this target, this new “Super Region” must work on four factors: resources, capital, demand, and capabilities. Interestingly, the temperature target aligns neatly with Saudi Arabia’s Vision 2030 and the four factors Wood Mackenzie identifies seem to echo many of the points of Vision 2030 itself.
What role will KSA play in this emerging Super Region? Darío Castellanos, general manager for the Middle East at Xcalibur Smart Mapping, stated: “Saudi Arabia has the potential to become a major player, not just in regional mining but globally, especially when it comes to materials needed for the energy transition. The country could take the lead in mining acquisitions with its financial strength. Beyond dominating its territory, Saudi Arabia could also play a big role in developing mining resources in other regions.”
Indeed, there are many points that serve as an advantage for the region and Saudi Arabia in particular. First and foremost, the Kingdom is strategically located at the heart of this region. Beyond the benefits of low operating costs, abundant energy resources, and a skilled young workforce (KSA has a population of around 32 million, and 63% of the population is less than 30 years old), Saudi Arabia also enjoys exceptional connectivity. More than 60% of the world’s markets are accessible within just eight hours by air and five days by sea. While the recent disruptions in global supply chain logistics have highlighted vulnerabilities, Saudi Arabia’s central location and robust infrastructure continue to position it as a critical hub for trade and commerce.
KSA is by far the largest economy in the GCC, and only two countries within the broader region have a higher GDP than Saudi Arabia (US$1.07 trillion in 2023): India, with a GDP of US$3.55 trillion, and Turkey, which stands at US$1.108 trillion.
“The GCC has a lot to offer, but Saudi Arabia is where the spotlight really is now. With limited opportunities in the rest of the GCC except for the UAE, KSA is the only place where the most ambitious projects are happening. Over the next two to three years, the country plans to invest at least US$100 billion in various sectors in its broader strategy to reduce reliance on oil and diversify its economy,” commented Dip Kishore, board member, ECOM member & advisor to CMD development projects & metals & minerals at Larsen & Toubro.
The second point is that the region, particularly Saudi Arabia, remains vastly underexplored. If you want to find an Easter egg, you have to go where your siblings did not already search. This is precisely the opportunity that Saudi Arabia offers with an untapped potential value estimated at US$2.5 trillion. “For years, companies focused on other jurisdictions because, as a junior, you are going to explore an area where you believe there is potential for a significant discovery and where everything is in place to support that work such as security of tenure, good baseline geodata for the license areas, and economic and financial security,” said Antony Benham regional director at MSA Arabia.
Benham is right. The trillion-dollar mineral potential referenced earlier is a recent estimate officially confirmed by the Saudi government in 2023. This came as part of different initiatives, including programs with the Saudi Geological Survey aimed at catching up with more mature jurisdictions in terms of mapping the Kingdom’s geological resources and, at the same time, attracting new investors.
Finally, there is the crucial advantage of neutrality. As global superpowers are divided between the West and the East, who is left in the middle? By maintaining a neutrality policy, Saudi Arabia has become a magnet for investors from around the globe, offering a stable, balanced environment in which to do business. As Boris Eykher, co-founder and CEO of Open Mineral, summarized: “They hold a neutral position, balancing ties with the Global South, the West, and China, which is crucial in the trade as impartiality matters. Despite being a desert, the Gulf is genuinely an oasis of capital, opportunities, and a natural trading hub.”
Saudi Arabia and more specifically, the annual Future Minerals Forum (FMF) in Riyadh are positioning Saudi Arabia to set the tone for the conversation in the years to come, with both the private sector and different governments shaping the dialogue moving forward: “We are the voice of the so-called `Super Region´, a concept that unites Africa, the Middle East, Central Asia, and South Asia, regions that play key roles in the global mineral supply chain. While the Super Region is a focal point, our work is inclusive, aiming to bring all senior leaders, suppliers, customers, and stakeholders together to drive the industry forward,” concluded Ali M. Al Mutairi, executive director for the Future Minerals Forum.
Article header image by Mohammed at Adobe Stock