The investment climate in Saudi Arabia is healthy, long-term and secure, according to Sultan Bin Jamal Shawli, deputy minister for mineral resources. “There has never been a better time to get involved in Saudi Arabia's mining sector,” Shawli told Saudi Gazette in a recent interview. He said the ministry has undertaken many activities to encourage mining investment and attract local and international capital to exploit mineral resources in the Kingdom. “These activities were supplemented by the financial and administrative incentives in the new Mining Investment Code,” he added. He explained that the Kingdom being rich in mineral resources, the government pays special attention to this sector. According to him it will contribute 7 percent to the GDP in the coming few years because of the huge projects planned in the country. Dr. Zuhair Abdulaziz Nawab, chairman of the Saudi Geological Society (SGS), said Saudi Arabia is a fertile land for mining. Still virgin, not fully exploited, and thus offers great opportunities. “Moreover there is a new mining code that offers full freedom and transparency. The investor knows his rights, and responsibilities,” he said. “Saudi Arabia enjoys an advanced geological database – more than what is available in any country – and it is updated regularly,” Nawab said, and added that the Kingdom has diversified mining belts that cover many fields. There is modern infrastructure and expert geologists available, and stressed that investors should not miss the opportunity. Dr. Abdullah Dabbagh, president and CEO of the Saudi Arabian Mining Company (Ma'aden), said the government “has changed the mining law and allowed international investors to come in, cooperate and make money out of joint venture activities.” Wilson S. Robb, chairman and principal geologist, Aurum, mineral exploration consultants, said Ma'aden is one client his company would like to work for. “We expect to have an office in Jeddah before the middle of this year,” he said, and added, “We saw this market opening up and decided to come over.” Sultan A. Al-Rumaihi, strategic account manager, ABB Saudi Arabia, a global company with a branch and a manufacturing facility in the second industrial area in Riyadh, said ABB was aiming to be part of transferring technology to the aluminum smelter project, which is coming very soon. “We are aiming to be provider of the utilities such as sub-stations, low, medium, and high voltage transformers, and most of which is manufactured in our Riyadh plant,” he added. Shawli said that there are a host of projects and developments planned, and the introduction of the new Mining Investment Code, which provides equal treatment for foreign and local investors, has resulted in a great increase in the number of licenses applied for and issued. At the end of 2008, nearly 1,406 licences were issued to 700 companies and establishments. Exploration licenses for precious metals, base metals, industrial minerals and ornamental stone, covering an area of more than 135,000 sq. kms, amounted to 59. Reconnaissance licenses to conduct preliminary investigations on mineral deposits throughout the kingdom, numbered 84, including 13 foreign entities. He said that in the same period, exploitation licenses, including mining licences and raw materials quarry licenses amounted to 57, covering an area of 1,207 sq. kms. These licenses included 22 for the exploitation of cement, 21 for industrial minerals, and 14 for precious metals, iron, peridot, phosphate and bauxite. Small mine licences for exploitation of industrial minerals, numbered 58. The number of building materials quarry licences for exploitation of marble blocks, granite, gypsum, limestone, schist, basalt, pozzolan, iron sand, regular sand, and gravel amounted to 1,148, covering an area measuring 287 million sq meters. Shawli said that in order to increase the export of Saudi minerals, the ministry granted permits to export 4.7 million tons and 306,000 cubic meters of ornamental stone in 2008. The Deputy Ministry for Mineral Resources (DMMR) has also reserved more than 254 areas for mining activities, covering approximately 53,000 square kilometers.
