Saudi Arabia to boost mining sector to $64bn GDP contribution

Khalid Al-Falih, minister of energy, industry and mineral resources, said the Kingdom’s strategy includes 42 initiatives to structure the sector . (SPA)
Updated 28 November 2018
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Saudi Arabia to boost mining sector to $64bn GDP contribution

  • Al-Falih said the Arab Mineral Resources Conference aims to encourage mining investments in the Arab world

CAIRO: Saudi Arabia is seeking to develop its mining sector to increase its current GDP contribution from $17 billion to $64 billion.

Khalid Al-Falih, minister of energy, industry and mineral resources, said the Kingdom’s strategy includes 42 initiatives to structure the sector and raise its contribution to the economy.

Speaking at the International Arab Mineral Resources Conference in Cairo on Monday, Al-Falih said Saudi Arabia planned to create 160,000 jobs in the sector by 2030.

He said the strategy would also work on increasing the value added to minerals, and developing under-developed regions, so that the mining sector becomes the third pillar of the Saudi economy along with oil and petrochemicals.

“The Kingdom has the resources to achieve these goals, with what God had granted this territory with unique geological diversity and abundance of mineral resources,” Al-Falih said.

Most of these resources lie in the Arabian Shield region, in the western part of the Kingdom.

Al-Falih said the Arab Mineral Resources Conference aims to develop the mining sector and encourage mining investments in the Arab world.


US-Saudi business council reports $13bn in contracts

Updated 24 May 2019
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US-Saudi business council reports $13bn in contracts

  • Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said

LONDON: The value of joint Saudi-US contracts rose to $13 billion in the first quarter of 2019, according to a business council report.

That marked the highest value of awarded contracts since the first quarter of 2015, the US-Saudi Arabian Business Council said.

The value of contracts awarded during the first quarter amounted to about half of the total value in all of last year, it added.

The contracts “included many vital projects, notably in the oil, gas, water and transport sectors,” Abdallah Jum’ah, the co-chair of the council, was reported as saying by Asharq Al-Awsat.

Energy was the top sector, with $3.1 billion of the value of contracts awarded, with many struck by Saudi Aramco. 

Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said.

The construction sector also looks set for a recovery after many projects were put on hold due to the oil-price crash.

“If the pace of awarding construction contracts witnessed during the first quarter of 2019 continues for the rest of the year, the index of awarding construction contracts may return to the range we witnessed before the canceling and postponing of mega projects due to lower oil revenue,” the council said.