Saudi Arabia is making bold moves to transform its economy, and the mining sector is at the heart of this shift. With the launch of a new incentives package aimed at attracting foreign direct investment (FDI) into Saudi Arabian mining, the Kingdom is signaling its intent to become a global player in this industry. For business leaders and executives eyeing expansion into the region, this development offers a timely opportunity to tap into a market brimming with potential. At Peninsula, a specialist Corporate Services firm founded by Alistair Paine, we’ve been helping businesses navigate the UAE and Saudi Arabia for over 15 years. Here’s what this regulatory update means for you and how it ties into your company formation and business setup in Saudi Arabia.
The Kingdom sits on an estimated $2.5 trillion in untapped mineral wealth, including gold, copper, phosphate, and rare earth elements. This vast potential is a cornerstone of Saudi Arabia’s Vision 2030, a strategy to diversify away from oil and establish mining as a third pillar of its industrial economy. The recent incentives package, announced by the Saudi Press Agency, underscores the government’s commitment to making this vision a reality. For executives, this isn’t just a policy update—it’s a signal that Saudi Arabia is open for business and eager to partner with international firms.
This initiative is particularly relevant if you’re considering expansion into Saudi Arabia. The mining sector’s growth offers opportunities beyond extraction, from technology and logistics to professional services. Whether you’re a multinational corporation or an SME, understanding these changes can shape your strategy for entering this dynamic market.
Saudi Arabia’s Ministry of Investment, in collaboration with the Ministry of Industry and Mineral Resources, has rolled out an exploration enablement program to simplify investments in mineral exploration. This package builds on the Saudi Mining Investment Law, enacted in 2020 under Royal Decree No. (M/140), which laid the groundwork for a more investor-friendly environment. The law introduced a clear licensing system, streamlined permit processes, and bolstered environmental and social governance—key factors that reduce risk for foreign investors.
What’s new with this incentives package? It offers tangible benefits like tax exemptions and reduced royalties for qualifying projects, designed to encourage long-term investment in Saudi Arabian mining. The government is also promoting exploration across 5,000 square kilometers of mineralised belts in 2025, as highlighted by Minister Bandar Alkhorayef at the Future Minerals Forum in Riyadh. This ambitious scope signals a proactive approach to unlocking the Kingdom’s mineral wealth, making it an attractive prospect for businesses looking to establish a foothold.
For business leaders, this means lower entry barriers and enhanced support for setting up operations. At Peninsula, we see this as a prime opportunity for companies to leverage these incentives through strategic company formation, ensuring compliance while maximising benefits.
The Saudi Mining Investment Law is more than just a regulatory framework—it’s a blueprint for growth. Overseen by the Ministry of Industry and Mineral Resources, it creates transparency and predictability, aligning with international best practices. This is critical for executives who need assurance that their investments are secure. The law simplifies the licensing process, ensuring that mining activities are responsibly managed while opening doors for private sector participation, including foreign investors.
For companies considering business setup in Saudi Arabia, this framework reduces the complexity of entering the mining sector. It also introduces financial guarantees to ensure compliance, offering peace of mind for long-term projects. Whether you’re exploring direct investment in mining or providing ancillary services, this law provides a stable foundation. Peninsula’s expertise in navigating these regulations can help you structure your entity efficiently, from commercial registration to securing the right licenses.
Saudi Arabia’s geographic position is a standout advantage. Located at the crossroads of Europe, Africa, and Asia, the Kingdom offers unparalleled access to global markets—a crucial factor for exporting minerals. Combine this with a robust infrastructure network, including modern highways, railways, and world-class ports, and you have a logistics backbone that supports efficient operations. Industrial cities tailored for mining and processing further enhance the appeal, providing ready-made hubs for business activity.
The incentives package and supportive legislation have unlocked a wealth of opportunities in Saudi Arabian mining. Foreign investment in mining in Saudi Arabia can take many forms—direct participation in exploration projects, partnerships with local players like Maaden, or supplying specialised services and technology. The streamlined processes and financial incentives make it easier to get started, while the potential for joint ventures with Maaden, the national mining champion, offers a strategic entry point.
Consider a practical example: a UAE-based firm looking to expand into Saudi Arabia could set up a subsidiary to provide equipment or consulting services to mining operations in Jabal Sayid or Al-Hajjlah, where recent exploration licenses span 4,788 square kilometers. These projects are expected to see investments of nearly $100 million over the next three years, creating demand for expertise and innovation. Peninsula’s team can assist with company formation, ensuring your business is structured to meet local requirements and tap into this growing market.
Compared to other mining jurisdictions, Saudi Arabia offers a compelling mix of incentives, stability, and untapped potential. Many mature markets have exhausted their easily accessible deposits, but the Arabian Shield remains largely unexplored, promising significant discoveries. The Kingdom’s long-term vision aligns with the extended timelines of mining projects, and its political and economic stability provides a secure environment for capital-intensive investments.
For business leaders, this positions Saudi Arabia as a destination where early movers can gain a competitive edge. The government’s commitment—evidenced by initiatives like the cooperation agreement with the World Economic Forum and new mining complexes in Makkah and Asir—demonstrates a proactive approach to attracting quality investments.
If you’re weighing the idea of entering the Saudi mining sector, start with a clear strategy. First, assess how your business aligns with the opportunities—whether it’s direct investment, partnerships, or support services. Next, consider the regulatory landscape. The Saudi Mining Investment Law and new incentives package simplify entry, but local expertise is key to navigating the nuances. This is where Peninsula shines, combining deep regulatory knowledge with practical business acumen to streamline your expansion.
For instance, setting up a company in Saudi Arabia involves commercial registration, licensing, and potentially forming local partnerships. Our team, led by Alistair Paine, has guided countless clients through this process, ensuring compliance while optimizing for growth. Whether you’re an SME or a multinational, we tailor solutions to fit your goals, helping you capitalise on foreign investment in mining in Saudi Arabia.
This incentives package is more than a mining initiative—it’s a testament to Saudi Arabia’s broader push to streamline business practices and attract global players. The Kingdom is investing heavily in its future, from infrastructure to regulatory reform, making it an increasingly attractive hub for executives. For those considering business setup in Saudi Arabia, the mining sector offers a gateway to a market poised for explosive growth.
At Peninsula, we’re excited to see these changes unfold. Our mission is to help you turn opportunities like this into actionable plans. With the Saudi government paving the way and our expertise at your disposal, now is the time to explore how Saudi Arabian mining can fit into your expansion strategy. Let’s work together to build your presence in this promising region.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which Saudi market entry strategy is best suited to your business.
Email: Alistair@peninsulacs.com
