Business Sweden in cooperation with the Embassy of Sweden in Riyadh, will organize a B2B delegation focusing on the mining sector of Saudi Arabia on 16-18 November, 2014. The delegation will be led by the Swedish Ambassador H.E. Dag Juhlin-Dannfelt, and will provide the participants with an opportunity to understand the market and meet key companies and decision-makers.
Government spending continues to drive the Saudi economy
Saudi Arabia has an oil-based economy with strong government involvement in major economic activities. It possesses about 16% of the world's proven petroleum reserves, ranks as the largest exporter of petroleum, and plays a leading role in OPEC. The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of export earnings. Economic growth in Saudi Arabia is forecast to 3.6 percent in 2014 driven by high government spending. Budgeted spending is forecasted to reach an all-time high in 2014, as the government continues with its investment plans to drive economic growth and meet the demand of a rapidly growing population. Total expenditure is budgeted at SR855 billion in 2014 that is 4 percent above the amount spent in 2013.
Saudi Arabia is encouraging the growth of the private sector in order to diversify its economy and to employ more Saudi nationals. In March 2014 the government set up the Saudi Arabian Company for Industrial Investment, an entity with capital of SR 2bn, that will invest in manufacturing. The move is in line with the government’s strategy to use its abundant raw materials and cheap utility costs to create a broader industrial base to help raise the value of its exports.
Saudi Arabia is becoming a significant mining market
Saudi Arabia’s metal and mineral resources are the largest in the Gulf region. The deposits are rich in gold, copper, phosphate, bauxite and other industrial minerals. In total, over 40 types of mineral deposits have been identified in the Saudi Arabia, with at least 15 industrial minerals assessed as being economically feasible for extraction.
The government continues with its efforts to develop the sector as the “third pillar” of the Saudi economy after oil and petrochemicals. The strategy includes establishing industries for extracting and processing the minerals, developing the infrastructure to make minerals accessible for processing, and streamlining procedures for export of minerals and mineral-derived products. The government has earmarked approx. $12 billion for mining and mineral development through 2020.
The main stakeholder in the mining sector is the Saudi Arabian Mining Co (Ma’aden). It was established in 1997 by government as a catalyst for private investment in and development of the mining sector. Ma’aden has aggressively explored and developed Saudi Arabia’s mineral resources over the last 17 years. It mines and processes the Kingdom’s gold, phosphate, and bauxite deposits, in addition to other metals and minerals on a smaller scale.
Current value of Saudi Arabia’s mining projects:
Upstream projects (extraction, mining) under execution or pre-execution worth $4bn
Downstream projects (mineral/metal processing plants) under execution or pre-execution worth $15bn
Total Ma’aden projects under execution or pre-execution worth $15.4bn
The delegation will support the overall commercial relationship between Sweden and Saudi Arabia and open up doors to local mining companies
The purpose of the three day delegation is to strengthen the commercial relationship between Swedish companies and stakeholders in the Saudi Arabian mining sector. Participating companies will get the opportunity to increase their knowledge about the business environment and in particular, business opportunities in the mining sector. The delegation program will be focusing on meeting key decision makers and representatives of companies active in the mining sector.
We look forward to having you with us in this exciting delegation.
If you're interested in participating in the delegation, please contact Jonathan Hasse, Business Sweden, firstname.lastname@example.org, +966 118 80 6772, for further information.