Saudi Arabia issues 55 mining licenses in April

Saudi Arabia issues 55 mining licenses in April
In April, the ministry issued 34 licenses for exploration, 17 for quarrying building materials, three for surplus mineral ores and one for mining and small mine exploitation.  (Shutterstock)
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Updated 30 May 2023
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Saudi Arabia issues 55 mining licenses in April

Saudi Arabia issues 55 mining licenses in April

RIYADH: The number of mining licenses handed out in Saudi Arabia showed sustained growth for the third consecutive month, as the government issued 55 new permits in April. 

According to the Saudi Ministry of Industry and Mineral Resources, this number is up from the 27 handed out in March and the 18 handed out in February. 

In April, the ministry issued 34 licenses for exploration, 17 for quarrying building materials, three for surplus mineral ores and one for mining and small mine exploitation.  

The total number of licenses issued in the sector until April numbered 2,336, including 1,454 permits for quarrying building materials, 634 for scavenging, 180 for mining and small mine exploitation, 36 for reconnaissance activities and 32 for the surplus of mineral ores.   

Moreover, Riyadh bagged 573 permits, Makkah 384, the Eastern Province 374 and Madinah 258. 

The ministry further reported that Asir issued 213 permits, Tabuk 149, Al-Qasim 90, Jazan 80 and Hail 68 in April. On the other hand, the number of permits Najran gave stood at 55, Al-Baha 39, the Northern Borders 27 and Al-Jawf 26.

The ministry has been actively pursuing opportunities to protect the mining sector and maximize its value in line with the Kingdom’s Vision 2030 goals and the National Industry Development and Logistics Program.   

Moreover, Saudi Arabia is on track to transform mining into the third pillar of the national industry and work to exploit the mineral resources in the Kingdom spread across more than 5,300 sites and valued at about SR5 trillion ($1.33 trillion).   

Last January, Mike Henry, the CEO of Australian mining giant BHP, stressed that mining activities of critical minerals worldwide should be accelerated to meet the energy transition targets over the next 30 years as the world dreams of a sustainable future.  

Speaking at the Future Minerals Forum in Riyadh, Henry said it is impossible to meet the rising demand for critical minerals if the world continues to move at the current pace.    

“Over the next 30 years, in order to meet the needs of the energy transition, the world is going to need two times as much copper, four times as much nickel, two times as much steel, and two times as much iron ore, as was needed over the past 30 years,” he said.


Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 
Updated 03 October 2023
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Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 

RIYADH: Saudi Arabia can expect a considerable penetration of online trading as the General Authority for Small and Medium Enterprises, or Monsha’at, organized the third phase of its tour with the E-Commerce Council on Monday. 

According to the Saudi Press Agency, the tour concludes on Wednesday and has witnessed the participation of service providers and e-commerce specialists. 

The tour included discussions on developing an environment conducive to developing e-commerce in the Kingdom and the platform's role in various government sectors, including transportation, rural and municipal affairs, housing and SMEs. 


Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US
Updated 03 October 2023
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Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US

RIYADH: Saudi Arabia has strengthened its position in global supply chains after a ship loaded with 37,000 tons of crude iron set sail from the Port of Jazan City to New Orleans, US.

According to the Saudi Press Agency, this product marks a significant milestone as it is the first to be manufactured within the region, produced at the Advanced Smelting Industries Co. factory in Jazan.

Crude iron, also known as pig iron, is a more brittle form of the material and is used in steel production.

Traditionally recognized for its vast oil reserves, the Gulf nation has been proactively pursuing economic diversification, as outlined in Vision 2030.

The successful production and export of crude iron are crucial steps toward achieving this goal.

The Port of Jazan City boasts extensive capabilities and advanced logistical transportation services, solidifying its status as a pivotal trade hub in Saudi Arabia.

Positioned as one of the region’s most modern ports, it lies along the international trade route through the Red Sea, in close proximity to the Bab Al-Mandab Strait, various African nations, and the maritime Silk Road.

Consequently, this port is a crucial gateway for the southern regions and neighboring countries.


Saudi SWCC signs 5 agreements to localize the water industry

Saudi SWCC signs 5 agreements to localize the water industry
Updated 03 October 2023
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Saudi SWCC signs 5 agreements to localize the water industry

Saudi SWCC signs 5 agreements to localize the water industry

RIYADH: Amid efforts to localize the water industry and support advances and innovative technologies, Saudi government firm Saline Water Conversion Corp. has inked five deals with prominent organizations and companies.

During the second session of the Innovation Driven Desalination Conference 2023 in Jeddah, two agreements were signed with the Small and Medium Enterprises General Authority, also known as Monsha’at, and University of Tabuk.

The remaining three deals were in agreement with software firm UiPath, design and manufacturer Fluid Equipment Development Co., and American chemicals corporation Dow, the Saudi Press Agency reported.


Oman’s total foreign assets rise 27.4% to $17.82bn

Oman’s total foreign assets rise 27.4% to $17.82bn
Updated 03 October 2023
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Oman’s total foreign assets rise 27.4% to $17.82bn

Oman’s total foreign assets rise 27.4% to $17.82bn

RIYADH: The total foreign assets of the Central Bank of Oman increased 27.4 percent year on year to 6.86 billion Omani riyals ($17.82 billion) by the end of July, according to its statistics authority. 

The National Center for Statistics and Information also reported an annual increase of 4.9 percent in local liquidity by the end of July. 

While reporting the figures, Oman News Agency found that private sector deposits in commercial banks and Islamic windows were 18.17 billion riyals by the end of July, up 6.5 percent compared to the year-ago period. 

An Islamic window is a section of a conventional bank offering Shariah-compatible products and services. 

The state-run agency further reported that total loans and financing in commercial banks and Islamic windows grew 8.7 percent year on year to 30.27 billion riyals. 

On Sunday, S&P Global Ratings upgraded Oman’s long-term credit rating from “BB” to “BB+.” 

The report by S&P Global underscores a transformation in Oman’s non-oil sector, which promises substantial growth in the years ahead, particularly between 2023 and 2026. 

“Oman’s economy depends on the oil sector, which accounts for about 30 percent of GDP (gross domestic product), 60 percent of goods exports, and 70 percent of government fiscal receipts. This dependence weighs on our assessment of its fiscal and external resilience, and we reflect this in the rating,” said S&P Global in the report. 

The report also touched upon the banking sector, which witnessed a marked boost in credit balance, registering a growth of 5.3 percent in July compared to the same month the previous year.  

Meanwhile, in September, NCSI data revealed that Oman’s gross domestic product registered a 9.5 percent decline in the second quarter of 2023 compared to the same period last year, driven by a decrease in oil activities. 

GDP at current prices fell to 10.08 billion rials in the second quarter compared to the 11.14 billion rials recorded during the same period of the previous year. 

Moreover, the GDP at current prices for the first half of 2023 experienced a 2.4 percent decline, reaching 20.39 billion rials compared to the same period last year. 


Saudi economy to remain in trillion-dollar club through 2026, economists predict

Saudi economy to remain in trillion-dollar club through 2026, economists predict
Updated 46 min 22 sec ago
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Saudi economy to remain in trillion-dollar club through 2026, economists predict

Saudi economy to remain in trillion-dollar club through 2026, economists predict
  • Budget deficit not seen hurtful in view of increased government spending to stimulate growth

RIYADH: Saudi Arabia’s preliminary budget for 2024 not only signifies its commitment to structural reforms but also indicates that the country’s gross domestic product is on track to exceed the SR4 trillion ($1.1 trillion) mark for five consecutive years until 2026.

In an analysis featured in Independent Arabia, Ghaleb Darwish, an economist and journalist, attributed the growth to robust government spending with a focus on non-oil sectors as part of its economic diversification plans.

In a significant milestone, the Kingdom crossed the GDP threshold for the first time in 2022, reaching SR4.156 trillion. Building on this momentum, analysts predict a GDP of SR4.136 trillion in 2023, SR4.26 trillion in 2024, and SR4.5 trillion in 2025, ultimately culminating in SR4.8 trillion by 2026.

However, this optimistic economic trajectory is not devoid of challenges. The backdrop of increased spending combined with reduced oil production has led Saudi Arabia to anticipate a budget deficit.

Contrary to earlier expectations of a fiscal surplus, the Kingdom foresees a deficit nearing 2 percent for the current fiscal year. In continuation, the preliminary 2024 budget statement alludes to an expected deficit of approximately 1.9 percent of the GDP.

Total expenditures for the forthcoming year are likely to reach approximately SR1.25 trillion. In contrast, revenues are projected at SR1.17 trillion.

Saudi Arabia augmented its expenditures for the current year by an estimated 13 percent, compared to the figures announced at the outset of 2022.

In an interview with Independent Arabia, Saudi economist and financial researcher Mohammad Al-Shemimri said there is an ongoing disagreement among economists about whether the deficit is a negative thing in Saudi Arabia’s budgets, even if the trend continues for many years.

He added: “This deficit may not affect the country’s economy if its levels are controlled, and also if it is caused by increased spending to enhance economic growth and spending on infrastructure, health and education.”

The revised spending now stands at SR1.26 trillion, a significant leap from the initial projection of SR1.11 trillion.

In terms of revenue, the 2023 forecast stands at SR1.18 trillion, a favorable increase from the previous estimate of SR1.13 trillion.

Ahmed Al-Shehri, an economist, said: “When looking at the expected deficit next year, we must take into account that the government budget reflects a balance between revenues and expenditures, and can be affected by many factors such as oil prices and global economic shifts.”

Furthermore, the Kingdom remains unwavering in its dedication to its social support framework. Such initiatives aim to safeguard Saudi citizens from potential financial impacts on both the domestic and international fronts, Darwish added.

This protective stance also extends to ensuring a steady supply and affordability of essential imported goods and services.