Saudi Arabia Energy & Mining Industry – Vision 2030, Investments & Growth
Saudi Arabia's energy and mining sectors are undergoing major transformations as part of Vision 2030. The industry is valued at $320 billion, contributing 26% to GDP and generating 250,000 jobs. With $2.5 trillion in unexplored minerals, the Kingdom is positioning itself as a global leader in clean energy and sustainable mining.
Key Trends & Investments
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Renewable Energy Expansion:
- $235 billion allocated to clean energy projects (hydrogen, solar, and wind).
- 35 solar and wind farms planned by 2030.
- Market size expected to grow from 8.33 GW to 23.74 GW by 2029.
- $5 billion NEOM hydrogen plant is a flagship project.
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Oil & Gas Market Growth:
- Expected to reach $93.55 billion by 2029, with a CAGR of 2.84%.
- Natural gas production increased from 99.2 to 120.4 billion cubic meters (2015-2022).
- Expansion of 17 operational pipelines.
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Mining Industry Developments:
- 30 exploration licenses issued in 2024.
- Ras Al-Khair Industrial City received $35 billion investment for phosphate and bauxite processing.
- Mining Investment Law offers reduced royalties and extended license durations.
Government Incentives & Regulations
- Public Investment Fund (PIF) Initiatives: Supporting innovative projects in energy and mining.
- Saudi Green Initiative: Aiming for 50% renewable energy production by 2030.
- Streamlined Licensing:
- Mining licenses issued within 90 days.
- Exploration licenses granted within 60 days.
- Labor Law Amendments (effective August 2024) to modernize workforce protections.
Strategic Projects & Industrial Growth
- $1 Trillion Capital Expenditure Plan:
- 73% allocated to non-oil sectors, including clean energy and transportation.
- Solar energy investments targeting 100-130 GW by 2030.
- King Salman Energy Park (SPARK):
- Secured $3 billion in investments to localize energy supply chains.
- Hosting over 60 investors with 7 factories operational and 14 under construction.
- Aramco's Energy Transition Leadership:
- Integrated 100+ technologies, saving $4.1 billion since 2016.
- Set 200+ hydrogen and GHG mitigation standards to reach net-zero emissions by 2050.
Saudi Arabia's energy and mining sectors are expanding rapidly, with a strong focus on renewable energy, sustainable mining, and economic diversification. Government support, foreign collaborations, and major investments are driving the country toward a greener and more resilient economy under Vision 2030.
