The Ninth Arab Conference for Mineral Resources held in Jeddah recently urged investors to explore, develop and industrialize a sector that has remained largely untapped in the region (including Saudi Arabia): Minerals.
Organized by the Ministry of Petroleum and Mineral Resources and the Arab Industrial Development & Mining Organization, the two-day conference highlighted the investment opportunities from exploiting the region’s wealth of minerals. It is potentially a major sector of Arab economic development and an attractive investment climate is needed, the conference was told. In his opening speech, Custodian of the Two Holy Mosques King Abdullah urged Arab states to strengthen their cooperation in exploiting their vast mineral resources; in doing so it would help them achieve the goal of self-dependence.
Minister of Petroleum and Mineral Resources Ali Al-Naimi told the conference in order to continue with mining sector development, some important decisions, including the new mining investment system, were made to encourage national and foreign investment based on transparency and ease of procedures.
The Arab ministers at the conference exchanged ideas and experiences for cooperation and coordination in developing mineral exploration and industry. Although there has been some growth in mining investment, the sector’s share of the total Arab countries’ GDP is around only one percent. “I think this is due to the need to create an attractive investment environment for national and foreign investors,” said Al-Naimi. He said there are some obstacles that have to be addressed including financing difficulties, international competition, lack of information and the need for transparent and flexible laws and regulations.
Mineral production does not exceed 1.6 percent and exports do not exceed $2 billion by all the Arab countries representing only 1.2 percent of their total exports, according to Talat Zafir, chairman of the organizing committee and manager of the Arab Industrial Development and Mining Organization.
The conference called upon the relevant Arab ministries and government departments to promote the investment opportunities in mineral resources. It emphasized the private sector’s role in taking up the lead in developing the minerals sector. The Arab governments were called upon to create a suitable atmosphere to attract foreign investment and increase their cooperation and exchange their expertise in areas such as mineral exploration, extraction and industrialization and marketing of mineral products. The conference stressed the importance of preparing geological maps of mineral resources and providing other relevant information. It also called for setting up special chambers for minerals.