Saudi Arabia is pursuing a significant economic diversification strategy centred on the Arabian Shield, an ancient geological formation spanning much of the kingdom's western region. With an estimated 2.5 trillion dollars in mineral resources, the kingdom aims to develop a comprehensive mining sector that encompasses extraction, mineral processing, and manufacturing capabilities. The Arabian Shield is an exposed section of Saudi Arabia's ancient crystalline basement composed primarily of igneous and metamorphic rocks formed between approximately 880 million and 550 million years ago during the Precambrian period.
The formation covers roughly 2.15 million square kilometres and initially developed in an ancient oceanic setting before being shaped by tectonic activity and fluid influx, creating conditions conducive to diverse mineral formation. On August 18, 2026, Saudi Aramco and mining company Maaden signed a joint venture agreement to explore the 182,000-square kilometre Transition Zone, also known as Zone 4, which runs parallel to the Arabian Shield. This partnership represents a major commitment to developing the kingdom's mineral resources as a strategic industrial pillar alongside oil and petrochemicals.
Mapping projects supported by Saudi Arabia's Ministry of Industry and Mineral Resources and the Saudi Geological Survey have identified more than 5,300 mineral occurrences across the region. The Arabian Shield contains deposits of gold, silver, copper, zinc, lead, chromium, nickel, tantalum, niobium and rare earths, representing nearly 50 identified minerals in total. The northern phosphate basin alone holds approximately two billion tonnes of phosphate ore, positioning Saudi Arabia among the world's top phosphate-rock sovereigns alongside Morocco and China.
The region also features bauxite reserves, gold mineralisation, and significant copper, zinc and lead occurrences. Aramco has confirmed lithium concentrations in the area as well. Copper has emerged as a particular focus for both Aramco and Maaden, with officials specifically identifying it as vital to the kingdom's energy transition objectives.
Copper's importance reflects Saudi Arabia's broader industrial ambitions in renewable energy production. Other raw materials such as aluminium, steel, silicon and rare-earth magnets are equally critical for solar and wind energy projects that form part of the kingdom's sustainable development goals. The strategic importance of developing domestic mineral production extends beyond simple export diversification.
For a nation investing heavily in manufacturing, renewable energy, technology, defence production and infrastructure development, controlling access to critical minerals reduces vulnerability to geopolitical disruptions. Geopolitical analyst Irina Tsukerman, based in New York, noted that combining local production with foreign mining investments would give Saudi Arabia greater flexibility to respond when wars or political crises disrupt international trade. She highlighted that achieving meaningful volumes from a reliable alternative source during geopolitical conflicts or export restrictions would provide significant strategic value, even without becoming the world's largest supplier.
The war involving Iran has already demonstrated supply chain vulnerabilities, with mineral shipments being disrupted and commodity costs rising. While Iran represents the Middle East's largest copper source and China dominates global rare-earth supplies, Saudi Arabia's emergence as a secondary producer would enhance regional mineral security and reduce price pressures on neighbouring economies. Saudi Arabia's Vision 2030 development programme has incorporated mining as the third pillar of national industrial growth.
The kingdom's capacity to build necessary infrastructure—including roads, power connections and transportation systems—exists, though challenges remain. These obstacles include developing local technical expertise, managing commodity price volatility, and addressing water resource constraints in a water-scarce region. SGS, a Canada-based consulting firm commissioned by Maaden in 2023 for a prospectivity study, identified sulphide deposits, younger orogenic gold, post-collisional rare-metal granites, and lithium-caesium-tantalum pegmatites as promising mineral targets.
SGS chief executive Abdullah Al Shamrani previously emphasised that reliable, high-quality geological survey data would prove critical for attracting both domestic and foreign investment. Successful development of Saudi Arabia's mining sector would accomplish multiple strategic objectives beyond creating additional export commodities. Mining would supply essential materials for the kingdom's own industrial expansion, support renewable energy and manufacturing objectives, reduce reliance on vulnerable foreign supply chains, and provide Riyadh with enhanced economic influence internationally, according to geopolitical analysis.
Source: thenationalnews.com