Saudi Arabia’s mining sector has made an impressive leap in the global investment attractiveness rankings, catapulting from 104th place in 2013 to 23rd globally in 2024, according to the Fraser Institute’s Annual Survey of Mining Companies.  
 
This rapid rise places the Kingdom ahead of many established mining destinations in Asia and Latin America, signaling a new era for one of the most strategic sectors in Saudi Arabia’s Vision 2030 plan. 

The Kingdom’s dramatic ascent in the Fraser Institute rankings reflects the effectiveness of recent reforms, strategic investments, and a clear focus on optimizing its vast untapped mineral resources. 
 
This transformation is not only enhancing Saudi Arabia’s attractiveness as a global mining hub but also presenting new opportunities for both foreign investors and entrepreneurs looking to engage in business setup in Saudi Arabia. 

A Steady Climb: Saudi Arabia’s Rise to Global Mining Recognition

Saudi Arabia’s mining sector has undergone a structural overhaul over the past decade, supported by substantial investments in geological exploration, new discoveries, and competitive licensing rounds. 
 
As a result, the country now ranks 23rd in the Fraser Institute’s Investment Attractiveness Index, a remarkable leap of 81 places, one of the steepest improvements recorded globally. 
 
The Kingdom also performed strongly in other categories, ranking 20th in the Policy Perception Index and 24th in the Best Practices Mineral Potential Index. Key drivers of this success include:

1. Regulatory Reforms: Saudi Arabia has introduced sweeping regulatory reforms across several domains, including tax and environmental legislation, land use for mining activities, and labor regulations.
   These improvements have significantly boosted investor confidence in the country’s mining sector, leading to higher levels of foreign and domestic investment. 
2. Exploration and Discovery: The Kingdom has ramped up its exploration activities, with government-backed surveys revealing rich mineral deposits across vast regions of Saudi Arabia. 
   As part of the efforts to develop its mining sector, Saudi Arabia also issued a record number of new mining exploration licenses, reflecting a 144% year-on-year increase in the first half of 2025. 
3. Infrastructure Development: The Kingdom’s ongoing infrastructure projects, such as the development of roads, railways, and ports, are enhancing the logistics and transport capabilities crucial for mining operations, making it easier for investors to set up mining businesses in Saudi Arabia. 
4. Political Stability: Political stability in the Kingdom remains one of the strongest selling points for investors. The government has also worked to ensure that its mining laws and regulations are clear, consistent, and transparent, further enhancing the attractiveness of Saudi Arabia’s mining environment. 

– Mining Investment Opportunities in Saudi Arabia

With its significant mineral wealth and robust regulatory framework, Saudi Arabia is positioning itself as an attractive investment destination for international mining companies. Here are some of the key opportunities in the Kingdom’s mining sector: 

• Gold and Copper: Saudi Arabia is rich in gold, copper, and other precious metals. Exploration projects are focusing on finding and developing new reserves, with a high potential for expansion in the coming years. 

• Phosphate and Bauxite: The Kingdom has vast reserves of phosphate, which is essential for fertilizer production, and bauxite, used in aluminum production. These industries are expected to see significant growth as global demand increases. 

• Rare Earth Minerals: Saudi Arabia is also looking to capitalize on its reserves of rare earth elements, which are critical for the production of high-tech devices, electric vehicles, and renewable energy technologies. 

Key Regulatory Aspects for Business Setup in the Mining Sector

The government’s commitment to ensuring a transparent and attractive business environment for mining investors is evident in its regulatory reforms. Here are some important regulatory aspects that investors should keep in mind when setting up a mining business in Saudi Arabia: 

1. MISA Licensing: Foreign investors looking to set up mining operations in Saudi Arabia must obtain a license from the Ministry of Investment Saudi Arabia (MISA). This is an essential step in the Saudi business setup process and allows investors to legally operate in the Kingdom. 
2. Zakat and Taxation: Saudi Arabia imposes a 20% corporate tax on foreign companies, but there are various tax benefits and exemptions available for companies that meet certain criteria. Mining companies may also benefit from tax exemptions in designated zones such as NEOM and other special economic areas. 
3. Environmental and Labor Regulations: Saudi Arabia has introduced significant changes to its labor and environmental regulations, ensuring that mining operations are sustainable and compliant with international standards. Investors must adhere to these regulations when establishing their operations in the KSA. 
4. Mining Licenses: Saudi Arabia has introduced competitive licensing rounds for mining exploration. Foreign investors can obtain these licenses through a clear and transparent bidding process, ensuring fair and equal access to mining opportunities. 

The Road Ahead: Investing in Saudi Arabia’s Mining Sector

With its rapidly growing mining sector, Saudi Arabia offers abundant opportunities for investors looking to invest in this sector. By capitalizing on its vast natural resources, favorable regulatory environment, and strategic location, Saudi Arabia is poised to become a global mining power in the coming years. 

For investors interested in capitalizing on the opportunities in Saudi Arabia’s mining sector, partnering with local experts and business setup services can help ensure a smooth and efficient entry into the market. 

Whether through joint ventures, mining licenses, or the establishment of new companies, for investors and entrepreneurs, now is the perfect time to explore business setup in Saudi Arabia’s mining sector, capitalizing on the country’s vast resources and attractive regulatory framework.