Saudi Arabia has been acknowledged for its exceptional mining investment environment in the latest annual assessment of mining investment risks from MineHutte and Mining Journal Intelligence, according to the Ministry of Industry and Mineral Resources.

 

Over the past five years, Saudi Arabia's scores have significantly improved in de-risking mining investments, placing it among the top 10 countries with the least legal and financial risks.

 

The recently published World Risk Report 2023, featuring MineHutte Risk Ratings, highlights the Kingdom as a standout best-performing mining jurisdiction, both regionally and globally.

 

This achievement follows sweeping sector reforms implemented since the launch of Saudi Arabia's mining and mineral strategy in 2018, aimed at attracting mining and mineral investments.

 

The report was compiled by MineHutte, a leading resource for the global mining industry, that empowers companies to navigate the complexities of legal and regulatory risks. Its comprehensive database provides access to over 100 mining codes.

 

It equips mining companies and investors with "a powerful tool" to compare the investment risks in 121 jurisdictions. It is based on ratings that encompass legal, governance, social, fiscal, and infrastructure categories. 

 

Commenting on Saudi Arabia’s outstanding ranking in the World Risk Report, Vice Minister for Mining Affairs at the Ministry of Industry and Mineral Resources Khalid Al Mudaifer stressed that it represents another great reason for investors to consider projects in the kingdom.

 

"In line with Vision 2030, the Ministry of Industry and Mineral Resources has been working to establish the mining sector as the third pillar of its industrial economy and believes that it offers a myriad of opportunities for investors," stated Al Mudaifer.

 

"Saudi Arabia represents a unique value proposition in the mining and mineral sector. What we need is for investors to take a long-term view, partnering with us to create local value and lasting development," added Al Mudaifer.

 

Chief Operating Officer and Research Director at MineHutte Emma Beatty commended Saudi Arabia for its impressive legislative reforms in the mining sector, and stressed that the kingdom stands out both regionally and globally through its successful reform efforts.

 

The country's commitment to becoming a prominent player in the global mining industry and its focus on developing the domestic mining sector are evident in its legislation, she said. These reforms have the potential to attract foreign investment and align with Saudi Arabia's economic vision for the mining sector.

 

Implementing such legislation is "a powerful tool in delivering on the country's economic vision for the mining sector", she said.

 

Beatty said a blueprint for the region on the Investment Risk Index (IRI), Saudi Arabia recorded the second-biggest global improvement, as it is singled out several times in the report as fast becoming a preferred destination for mining investment thanks to the comprehensive and attractive framework it has created through legislation and accompanying regulations. 

 

The largest gain is in the legal section, measuring an investor's risk of losing the economic benefit of a mineral discovery, with a 20-point increase in the past five years," she stated.

 

Consequently, Saudi Arabia is now ranked as a top-tier mining jurisdiction for investment, with respondents to the survey ranking it (perceived overall risk) among the top 20 jurisdictions globally. 

 

Assessing its approach to permitting, the report ranked Saudi Arabia as the second highest jurisdiction globally, indicating an efficient permitting process compared to that of many other jurisdictions. Furthermore, the kingdom's Fiscal Hard Risk score has improved, placing Saudi Arabia among the top 10 countries for fiscal risk mitigation worldwide.

 

Over the past five years, Saudi Arabia has achieved remarkable progress, making it the top performer in terms of gains in the mining sector. 

 

The success of its mining strategy reforms has even served as a blueprint for neighboring countries to enhance their regulatory frameworks and mining industries.

 

With a steadfast commitment to expanding its mining industry, Saudi Arabia is expected to continue improving and attracting increased investments in the sector.-TradeArabia News Service