A major Saudi mining sector push faces uncertainties

Significance

The announcement is part of the kingdom’s strategy to develop mining -- at home as well as abroad -- as a pillar of its economy and to attract foreign investment. Saudi Arabia also wants to position itself as a major player in the supply of critical minerals for the transition to renewable energy use.

Impacts

• Saudi Arabia could become a supplier of material required to produce batteries for electric vehicles.
• The mining plans will face NGO-led international scrutiny of their environmental, social and governance standards.
• Riyadh will take small steps towards liberalisation to attract foreign expatriates and improve its global image.
• Progress in the mining sector would help towards the ambitious targets set out in Saudi Arabia's Vision 2030 socio-economic plan.