Report: Cost excellence key to unlock potential of Saudi Arabia’s mining sector

Mining firms operating in Saudi Arabia should implement disciplined financial planning, transparency, and cost ownership in their operating model to reap long-term benefits, according to an analysis. In its latest report, professional services firm Alvarez and Marsal said the Kingdom’s mining and minerals industry is poised for sustainable long-term growth with committed investments worth SR246 billion ($65.55 billion) supporting the sector.

As a part of its economic diversification efforts, Saudi Arabia is accelerating the development of its mining sector, with the Kingdom’s mineral wealth now estimated at SR9.4 trillion ($2.5 trillion).

Commenting on the latest report, Alexander Shvets, managing director, infrastructure and capital projects – metals and mining at Alvarez and Marsal Middle East, said: “Saudi Arabia’s mining sector is now central to the Kingdom’s economic transformation. Building on this momentum with embedded cost visibility and performance tracking will help operators to achieve global competitiveness and long-term value creation.”

In March, the Kingdom also launched a new incentive package to attract foreign direct investments into the nation’s mining sector. Alvarez and Marsal outlined a strategy for mining and industrial companies to strengthen financial resilience by implementing activity-based budgeting, which links finance directly to operational drivers for greater accuracy and agility. Alvarez and Marsal further emphasised the importance of building cost-capability. They stated that equipping teams with practical tools and training is crucial to fostering a cost-conscious culture within the organisation.