Setting up a
Mining & Energy business.
Saudi Arabia is the third-largest mineral wealth holder globally — $1.3 trillion in untapped reserves (gold, copper, phosphate, bauxite, rare earths). The 2020 Mining Investment Law opened the sector to foreign investment with attractive terms. Energy (oil/gas services, renewables) is the other major opportunity, especially with NEOM's renewable mandate.
What's specific to Mining & Energy.
License codes, capital, regulators, and quirks that competitors gloss over.
- Mining licenses: exploration, exploitation, small-mining via Ministry of Industry and Mineral Resources
- Capital: very high — SAR 10M+ for serious mining; renewables vary by project
- Foreign ownership: 100% allowed under Mining Investment Law
- Royalty: mining royalties typically 4-7% of mineral value
- Aramco IKTVA: oil/gas services suppliers get preference for IKTVA-scoring local content
- NEOM renewable: Helios green hydrogen, ACWA Power solar projects driving foreign investment
- Environmental: mandatory environmental impact assessments
What we see go wrong.
- ✗ Skipping early MIM consultation — exploration licenses require pre-application engagement
- ✗ Not structuring royalty in financial model — 4-7% of revenue, not profit
- ✗ Underestimating environmental compliance — EIA can take 6-12 months
- ✗ Trying to bypass Aramco IKTVA in oil/gas — leads to losing tenders to compliant competitors
- ✗ Not applying for Mining Investment Law incentives — significant tax and royalty reductions available
Common questions.
Three license types: Exploration (5 years, renewable), Exploitation (30 years), Small-mining (5-15 years). Granted by Ministry of Industry and Mineral Resources after geological + environmental + financial review. Process: 12-24 months.
Yes — fully under the 2020 Mining Investment Law. No Saudi partner required. The law specifically liberalized this sector to attract foreign capital.
Massive. NEOM's Helios green hydrogen project ($8.4B), ACWA Power's solar mega-projects, and the renewable energy program (50% renewables by 2030 target) all create demand. Setup typically as branch or JV with Saudi state-owned utility.