JEDDAH, 5 March 2005 — A three-day Arab mining investment seminar opens in Jeddah today with a view to attracting investment to the region’s lucrative mining sector.
Ministers and officials from seven Arab countries including the UAE, Jordan and Iraq are to participate in the seminar. Thirty working papers prepared by 40 experts are slated for debate.
Saudi Arabia will present four papers highlighting investment opportunities in the country’s lucrative mining sector.
In a statement issued on the eve of the seminar, Saudi Minister of Petroleum and Mineral Resources Ali Al-Naimi said foreign companies licensed to carry out mining operations in the Kingdom make an annual revenue of SR12 billion. He said seven foreign companies have received 17 licenses to conduct a variety of activities including mining and excavation.
“We hope the seminar would go a long way in increasing domestic and foreign investment in the mining sector of Arab countries in general and Saudi Arabia in particular,” the Saudi Press Agency quoted Al-Naimi as saying.
The Saudi Ministry of Petroleum and Mineral Resources has so far licensed 1,100 mining projects.
The minister estimated the total licensed area for mining at 122,000 square kilometers, adding that some 500 firms take out more than 200 tons of mineral ores annually. Many downstream companies especially cement, paint, glass and ceramic factories depend on these raw materials.
“This seminar is aimed at emphasizing the significance of the mining sector in boosting economic development of Arab countries,” Al-Naimi said. At present the Kingdom’s mining sector contributes only two percent of the gross domestic product and employs 47,000 people.
Officials and experts would exchange information on the best ways to attract foreign investment. They will also discuss the rules and regulations for mining licenses as well as prospects of establishing joint projects.
The mining sector offers continuous development, creates new job opportunities and ensures diversification of revenues in addition to transfer of modern technology and expansion of infrastructure facilities.
“We expect that the seminar would help achieve coordination among Arab countries in order to establish joint projects and set up a technical database that is essential for Arab and foreign investors,” Al-Naimi said.
The minister described the new mining investment law in the Kingdom as a major achievement, adding that it would help attract more foreign investors to the sector.
The law, which was passed by the Cabinet on Sept. 13, 2004, is expected to make the mining sector the third pillar of the economy, alongside hydrocarbons and petrochemicals.
Prince Faisal ibn Turki, adviser at the Ministry of Petroleum and Mineral Resources, will preside over the first working session where Amr Al-Dabbagh, governor of Saudi Arabian General Investment Authority (SAGIA), will present a paper on the new investment climate in the Kingdom.
Sultan Shaweli, acting deputy minister for mineral affairs, will speak on the new mining investment law. Dr. Abdullah Al-Dabbagh, president and chief executive of Saudi Arabian Mining Company (Maaden), will speak on Maaden’s experience in attracting foreign investment.
The seminar is being organized by the Ministry of Petroleum and Mineral Resources in coordination with the Arab Organization for Industrial Development and Mining.