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RIYADH: ������Ƶ issued a record number of new mining exploration licenses in the first half of 2025, marking a 144 percent year-on-year rise, official data showed. 

A total of 22 licenses were issued during the period, up from just nine in the same period last year, reflecting growing investor interest and the government’s push to build a more competitive and attractive mining sector, according to a statement from the Ministry of Industry and Mineral Resources. 

The rise aligns with the rapid growth of the Kingdom’s mining industry, a central pillar in its Vision 2030 diversification strategy. ������Ƶ aims to increase the sector’s contribution to gross domestic product from $17 billion to $75 billion by 2035. The effort is backed by plans to accelerate exploration and development of the Kingdom’s estimated mineral wealth, valued at over SR9.4 trillion ($2.5 trillion). 

“The official spokesman for the Ministry of Industry and Mineral Resources, Jarrah bin Mohammed Al-Jarrah, explained that the number of companies investing in the new mining exploitation licenses issued during the first half of this year reached 23 mining companies, including 16 companies obtaining mining licenses for the first time,” the ministry said.

It added: “The total volume of investments in these licenses exceeds SR134 million, and they cover an area of 47 sq. km.” 

The ministry’s spokesperson said the projects covered by these licenses are expected to produce approximately 7.86 million tonnes annually of various mineral ores, including salt, clay, silica sand, low-grade iron ore, feldspar, and gypsum. 

Al-Jarrah also said the total number of mining and small-mine exploitation licenses currently active in the Kingdom stands at 239. These include 32 Category A licenses for strategic minerals such as gold, copper, phosphate, and bauxite, and 207 Category B licenses for industrial minerals, including silica sand, gypsum, limestone, salt, and clay. 

Earlier in July, Vice Minister of Industry and Mineral Resources Khalid Al-Mudaifer told Asharq Business that the Kingdom’s mining reforms have helped attract $32 billion in investments across projects involving iron, phosphate, aluminum, and copper. He added that this accounts for nearly one-third of ������Ƶ’s target to attract $100 billion in mining investments by 2030. 

The vice minister said mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent. 

Al-Mudaifer also said mineral exploration spending in the Kingdom has quadrupled since 2018, now reaching $100 per sq. km — an annual growth rate of 32 percent, significantly outpacing the global average of 6 to 8 percent. 

RIYADH: Fitch Ratings has affirmed ������Ƶ’s long-term foreign-currency issuer default rating at “A+” with a stable outlook.

The agency cited the Kingdom’s strong fiscal and external balance sheets, continued growth in the non-oil sector, and solid banking fundamentals as key drivers behind the rating.

Fitch also noted that ������Ƶ’s government debt levels and sovereign net foreign assets remain well above the medians for “A” and “AA” rated countries, supported by significant fiscal buffers in the form of deposits and other public sector assets.

The latest rating action comes as Gulf economies navigate the impact of lower oil prices while advancing economic diversification plans. The “A+” rating reflects ������Ƶ’s fiscal and external buffers built over years of high oil revenues, even as the Kingdom faces widening deficits due to large-scale investment spending.

In its rating commentary, Fitch stated: “Oil dependence, World Bank governance indicators and vulnerability to geopolitical shocks have improved but remain weaknesses.” 

Despite pressure from reduced oil revenues and rising fiscal and current account deficits, Fitch emphasized that ������Ƶ’s external reserves are expected to remain “large relative to peers,” averaging 12.8 months of current external payments in 2025 — well above the “A” median of 1.8 months.

However, the agency warned that the Kingdom is likely to gradually shift to a net external debtor position by 2027, due to sustained external borrowing and a strong domestic investment orientation.

The report also reviewed regional peers, highlighting that neighboring countries have maintained strong credit profiles. In July, the UAE’s long-term foreign-currency rating was affirmed at “AA-” with a stable outlook, supported by low consolidated government debt, a strong net external asset position, and high gross domestic product per capita.

Fitch also pointed to Abu Dhabi’s sovereign net foreign assets — equivalent to 157 percent of the UAE’s GDP in 2024 — as among the highest of all Fitch-rated sovereigns.

In May, Qatar retained its “AA” rating with a stable outlook, driven by its expanding liquefied natural gas production capacity and one of the highest per capita GDP levels globally. The agency highlighted Qatar’s flexible public finance framework as a key factor in enhancing economic resilience.

Similarly, in March, Kuwait’s long-term foreign-currency rating was reaffirmed at “AA-” with a stable outlook.

For ������Ƶ, Fitch projected a budget deficit of 4 percent of GDP in 2025, mainly due to lower oil income and a significantly reduced dividend from Saudi Aramco.

“Growth in current spending should be contained, and we expect capex to fall in line with ongoing project recalibration,” the report stated.

The deficit is expected to narrow to 3.6 percent by 2027, supported by rising non-oil revenue, higher oil production, and government spending growing more slowly than nominal GDP.

Fitch also underscored the Kingdom’s ongoing economic transformation under Vision 2030. It noted that GDP rebasing led to a 14 percent upward revision of the 2024 headline GDP figure, “almost entirely due to a 28 percent increase in the non-oil private sector (now 56 percent of GDP).”

Real GDP growth is projected at 4.3 percent in 2025, rising to 4.7 percent in 2026 before easing to 3.6 percent in 2027, driven by increased oil production and steady expansion in the non-oil sector. Non-oil growth is forecast to average 4.5 percent during this period, underpinned by continued public and government-related entity spending.