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RIYADH: Saudi Arabia has launched a new incentive package to attract foreign direct investments into the nation’s mining sector as the Kingdom steadily continues its economic diversification efforts. 

According to a Saudi Press Agency report, the Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry. 

This initiative is also part of the Kingdom’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies.

Speaking at the Future Minerals Forum in Riyadh in January, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said that the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the country’s broader plans to establish mining as the third pillar of its industrial economy. 

During the same event, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that the Kingdom is projected to invest SR120 million ($32 million) in 2025 as mining incentives aimed at supporting companies with the right technical expertise. 

Attracting international investments in the mining sector also aligns with Saudi Arabia’s ambitious goal to secure $100 billion a year in FDI by the end of this decade. 

The latest collaboration between both ministries follows the granting of exploration licenses for multi-mineral sites in Jabal Sayid and Al-Hajjlah.

The licenses cover a total area of 4,788 sq. km. and companies are expected to spend approximately SR366 million ($97.6 million) on exploration over the next three years.

In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion. 

In January, the Saudi Cabinet also authorized the Kingdom’s Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to implement a project aimed at securing critical minerals for development.

In the same month, Saudi Arabia also allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the Kingdom’s strategy to attract quality investments, enhance transparency, and support local communities.

RIYADH: Kuwait’s inflation rate remained steady at 2.49 percent in February, with a year-on-year upsurge in services and food prices, according to the latest data from the Central Statistical Bureau. 

The measure was broadly the same level as the 2.5% figure seen in both January and December.

In February, the index reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remains moderate, specific sectors experienced significant annual cost escalations.

The food and beverage sector recorded a 5.23 percent year-on-year increase, followed by the clothing and footwear division, which saw a 4.63 percent surge.

Prices in the miscellaneous goods and services sector increased by 5.46 percent, driven by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08 percent, while the furnishing and household maintenance division rose 3.04 percent.

Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Saudi Arabia’s inflation remained steady at 2 percent year-on-year in February, primarily driven by an 8.5 percent increase in housing rents. In contrast, Oman recorded a milder annual inflation increase of 1 percent in the same month, led by a 6.3 percent rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau report highlighted the price trends across different expenditure groups and provided insight into the movement of key categories within the consumer price index.

Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90 percent annually and remaining unchanged on a month-to-month basis. 

Transport prices declined by 1.19 percent over the past year, though they saw a minor monthly uptick of 0.07 percent. The communication division recorded a slight annual increase of 0.88 percent, while the recreation and culture sector rose by 2.48 percent. 

Education costs saw a small 0.71 percent increase, and the restaurants and hotels sector recorded a 2.03 percent annual rise.

The report showed that the total index, excluding food, rose by 1.93 percent annually, while the total index, excluding housing, increased by 3.13 percent. These figures suggest that inflationary pressure is primarily driven by non-housing-related expenses.

This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent month-on-month increase, according to data from the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund highlighted Kuwait’s non-oil sector recovery amid easing inflation. However, it noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.