ghazijosephhaddad

[ghazijosephhaddad]

Mining in the MENA Region 

At the Future Minerals Forum in January 2024 in Riyadh, Saudi Arabia, the country spoke clearly about its vision: establishing itself in the minerals value chain. Through its post-oil strategy called ‘Vision 2030’, the Kingdom of Saudi Arabia is seeking to diversify its economy from fossil fuels to minerals and transition to other energy sources. To accomplish this, Riyadh has drawn up a multi-pronged approach that entails policy, foreign investment and entrenching itself as a regional trade centre for energy and metal. 

This ambitious goal presents opportunities for investors, especially those interested in seeing the growth of the mining industry in the MENA region. As Ghazi Joseph Haddad – a business development consultant in the region – knows, Riyadh’s march towards establishing mining will open foreign investment opportunities. Mr Haddad has 35 years of combined technical and commercial experiences that have helped him to promote international investments exchange in the MENA region.  

Domestic Mining 

The Kingdom has vast domestic mineral reserves, with the estimated value of unexploited resources reaching $2.5 trillion. Much of this value is driven by high quantities of gold, copper, phosphate and zinc, not to mention the discovery of rare earth elements. The strategic focus on these natural resources is not only to diversify from hydrocarbon reserves but also to position itself as a provider of transition minerals critical to the worldwide shift to renewable energy. Altogether, this will preserve Saudi Arabia as a key player in the international energy industry.  

Vital to this push is the country’s Ministry of Industry and Mineral Resources, which holds a pivotal position in the mining strategy. Another big player is the Saudi Arabian Mining Company (Ma’aden), which is state owned and plays a role in developing partnerships for minerals exploration, mining strategies and the delivery of projects. 

Ma’aden is one of the fastest-growing mineral companies worldwide and the largest mining and metals company in the Middle East. Established in 1997, it was formed to develop the Kingdom’s minerals sector into a formidable one alongside the more established petrochemicals and oil industries. The Saudi Government fully owned it until 2008, before half of its shares were floated on the country’s stock exchange. Since this public offering, Ma’aden has expanded its focus from gold production to building operations to deliver industrial minerals, copper concentrate, aluminium and phosphate. 

Even as Saudi Arabia takes a leading role in the mining future, its regional partners are also developing their strategies. Algeria and Iran have mining expansion projects, while Egypt and Turkey are looking to compete with Saudi Arabia on the electric vehicle production front. So, even if the Kingdom gains ground on its ambitious mining goals, regional competition will ensure each country has a role in the global supply chain. 

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Energy and Renewable Energy in the MENA Region

It’s no secret that the Middle East and North Africa (MENA) region is a key player in the global energy discussion. Indeed, more than half of the world’s crude oil is found there, in addition to more than a third of natural gas reserves. For much of modern history, the MENA region has been a significant producer and exporter of energy. Furthermore, with growing economies, it is also an energy consumer, something that is positioned to continue in the 21st century. 

However, given the fact that most of the MENA region’s energy production is fossil-fuel driven, climate action calls for transitioning to renewable energy sources. Fossil fuel has proven unsustainable for the planet, and therefore, the world is in a race to shore up the production of solar and wind power, the two cost-competitive alternatives to fossil fuels that have emerged as renewable energy choices. 

For MENA countries, the transition to renewable energy calls for strategic shifts that will benefit communities and businesses at large. To business development consultants such as Ghazi Joseph Haddad – who is also the top alliances advisor at GET Saudi – this discussion is pertinent, as it looks set to unlock business opportunities for investors keen on growing their energy interests in the MENA region.  

Tripling Renewable Energy Capacity 

As the host region for COP27 and COP28, MENA countries were involved in the discussions and climate pledges made at these events. Key among the commitments was to triple renewable energy capacity by 2030, which would align with research conducted by the International Renewable Energy Agency (IRENA) and International Energy Agency (IEA) on ways to limit global warming, create new jobs and enhance livelihoods. 

More specifically, the goal to triple renewable energy capacity means that this capacity must increase from approximately 3,000 GW (gigawatts) to more than 11,000 GW by 2030. For MENA countries, it’s a goal that calls for concerted efforts by individual countries and also represents an opportunity to build regional unity. Building commitment is a key first step, and collectively, the MENA region must work together to translate the pledges into action. 

First up is the goal of adding 62 GW of renewable energy in the next five years, something the MENA region countries pledged to at COP28. Saudi Arabia will contribute to more than a third of this growth, with other partners such as the United Arab Emirates (UAE), Morocco, Oman, Egypt, Israel and Jordan also contributing more than 90 percent of the region’s renewable capacity increase.