Saudi Arabia: Mining, Manufacturing and Localization

 

• Abdullah Al-Alami *

The Kingdom's untapped mineral wealth is estimated at more than 9.4 trillion Saudi Riyals, which has encouraged Riyadh to build solid global partnerships in its mining sector. Examples include the rise in estimated mineral wealth value from 5 trillion to 9.4 trillion riyals, and the increase in the number of exploration companies from (6) companies in 2020 to (133) companies in 2023. The results are positive; Riyadh has made significant strides in its mineral exploration sector, with total spending reaching 102 billion riyals in 2024, reflecting the Kingdom's commitment to adopt the latest technologies and innovations.

Saudi Arabia is also rapidly advancing toward consolidating its position as a global manufacturing and production hub. Over the past six years, Riyadh has launched a series of effective incentives, most notably the promotion of local content, which has now become the largest incentive for investment, granting investors priority in the local market in government procurement of major corporate contracts. Saudi Arabia is also active in transforming a good portion of its petrochemical exports into industries based on four national strategies: localization, industry, mining, and export strategy. It is worth noting that the Kingdom has invested in the infrastructure of industrial cities by developing more than 25 million square meters to establish new factories and cities dedicated to development and production.

In addition, the Kingdom has shown a serious interest and desire to ensure the employment of qualified citizens. For example, the Kingdom is working to increase the Saudization rates for the following healthcare professions: therapeutic nutrition and physiotherapy by 80 percent, medical laboratories by 70 percent, and radiology by 65 percent. This decision comes within the framework of Riyadh's efforts to enhance the participation of national talent in the labor market. As such, Riyadh created 65,000 new stimulating and productive jobs for male and female citizens across the Kingdom, resulting in a shift in social security beneficiaries from being dependent on care to being active and productive.

Saudi Arabia continues to emphasize the need to maintain vigilance and balance in its public affairs, especially international political changes, artificial intelligence, and conventional banking frameworks. This is how Riyadh alignins its words with actions and earns trust and credibility.

 * Saudi writer