Saudi Arabia creates new Ministry of Industry and Mineral Resources
Saudi Arabia, as part of the kingdom's strategy to diversify its economy, announced the creation of an independent Ministry of Industry and Mineral Resources, separating it from the Ministry of Energy.
In 2016, Crown Prince Mohammed bin Salman launched a plan called Vision 2030, which aims to reduce the country's dependence on oil by strengthening other economic and investment activities.
The creation of a new ministry falls within this broader vision and, according to state media, it will be fully independent starting January 1, 2020. The new department will be headed by Bandar Al-Khorayef, a businessman from the Saudi industrial conglomerate Khorayef Group.
The ministry must ensure an increase in revenues from mining to 69.3 billion dollars. The sector's direct and indirect contribution to the kingdom's GDP is currently estimated at approximately US $ 21.3 billion.
In the central and northern regions of Saudi Arabia, deposits of bauxite, silver, zinc, copper, magnesite and kaolin were discovered. There are also explored deposits containing some of the world's largest phosphate reserves and up to 20 million ounces of gold.
Part of the mandate of the new ministry provides for the involvement of leading world companies in the development of the country's mineral resources. As part of Vision 2030, foreign direct investment should bring 5.7 percent of GDP, up from the current 3.8 percent. In parallel, the private sector's contribution to GDP is projected to rise to 65 percent from the current 40 percent.
Just over a month ago, the kingdom also expanded the mandate of the Saudi Industrial Development Fund by $ 28 billion to allow foreign companies to apply for funding for energy, logistics and mining projects. Previously, the fund only provided funding to local manufacturing enterprises.