Mining Exploration in Saudi Arabia: From Ambition to Execution
Eng. Meshary AlDehashi, CEO of Golden Compass Mining Services, explained that the Kingdom of Saudi Arabia is seeking to diversify its economy and strengthen non-oil sectors, with the mining sector emerging as one of the strategic pillars of Saudi Vision 2030. However, the challenges associated with the exploration phase—considered the highest in terms of risk and cost—have remained a major obstacle to attracting investment. In response, the Mining Exploration Enablement Program was launched as a practical solution to overcome these challenges.
The program, overseen by the Ministry of Industry and Mineral Resources, aims to accelerate exploration activities and reduce the risks faced by investors through a package of financial and regulatory incentives, in addition to providing access to more accurate and reliable geological data.
The program focuses on supporting companies during the early stages of exploration, a phase that companies often hesitate to enter due to uncertainty of outcomes. This support is expected to increase success rates and convert more exploration projects into productive mining operations.
The program is also expected to enhance Saudi Arabia’s attractiveness to both local and international investors, particularly amid global competition to attract mining companies, where a clear regulatory environment and risk mitigation have become decisive factors in investment decisions.
From an economic perspective, the program is anticipated to increase the number of exploration licenses, boost spending on mineral exploration, and lead to the discovery of new resources that support downstream industries and local supply chains. It also contributes to localizing technical expertise and creating high-quality job opportunities in geology and mining.
Despite these positives, the report notes that the program’s success depends on several key factors, most notably the continuity of support, the quality of implementation, and linking exploration activities to clear development and production plans, in addition to attracting companies with global expertise capable of transferring knowledge and developing the sector over the long term.
In conclusion, the Mining Exploration Enablement Program represents a pivotal step in the transformation of Saudi Arabia’s mining sector. If it achieves its intended success, it could help establish mining as one of the main pillars of the national economy in the coming decades.
It is worth noting that Golden Compass is one of the companies in which Rasi Investment Company invests, with Rasi Investment focusing on the industrial and mining sectors.
