Saudi Arabia says it has $2.5 trillion in mineral reserves. That could make it a key player in the race for rare earths



Saudi Arabia is well known as one of the world’s dominant oil producers, but in recent years the Kingdom has quietly revealed another potentially game‑changing source of national wealth: its vast mineral reserves. Officials now estimate that the value of Saudi Arabia’s untapped minerals surpasses $2.5 trillion, with significant deposits of rare earth elements, phosphate, gold, copper, zinc and other critical materials. This discovery and valuation put the Kingdom in a potentially influential position in the global race for rare earths and other strategic minerals that are essential to modern technology, clean energy and national security.

From Oil Giant to Mineral Powerhouse

Historically, Saudi Arabia’s economic identity has been tied to oil and petrochemicals. Under Vision 2030 — a long‑term economic diversification strategy — the Kingdom has been actively pushing to reduce its oil dependency and develop other sectors, with mining emerging as a central pillar. Mining is now considered the third pillar of the Saudi economy alongside oil and industrial manufacturing.

The surge in Saudi Arabia’s estimated mineral wealth reflects an intensive geological survey campaign, particularly in the Arabian Shield — a massive 600,000 sq km region of ancient rock formations rich in minerals. Recent discoveries beyond the Shield’s traditional belts have expanded the known footprint of valuable resources.

According to Saudi officials, the mineral wealth valuation nearly doubled from approximately $1.3 trillion to around $2.5 trillion in just a few years, driven by new finds and improved market pricing of minerals. This includes rare earth elements (REEs) — a category of 17 metals that are critical for high‑tech and green energy applications — which form a valuable part of that total.

Why Rare Earths Matter

Rare earth elements may sound obscure, but they are foundational to many modern technologies. REEs are essential for the manufacture of electric vehicles, wind turbines, smartphones, robotics, aerospace systems and advanced defense hardware. Without a reliable supply of these metals, many tech sectors face supply chain constraints. Saudi discoveries include significant deposits of heavy rare earth elements, which are particularly valuable because they are harder to source and command higher prices.

Globally, China currently dominates the rare earths market, controlling a large share of both mining and the refining capacity needed to turn raw ore into usable materials. This dominance has sparked concern among Western countries and others seeking to diversify supply chains and reduce reliance on a single supplier. In this context, Saudi Arabia’s growing footprint in rare earths could shift the balance, offering an alternative source of supply in the Middle East.

Strategic Position and Global Partnerships

Saudi Arabia’s push into minerals is not occurring in isolation. The Kingdom has been actively strengthening international cooperation in mining and critical minerals with global partners. For example, senior officials from Saudi Arabia and the United States have discussed deeper cooperation in mineral resources, aligning with the Vision 2030 goal of both economic diversification and strategic global integration.

Partnerships between Saudi state‑owned companies and foreign firms are emerging as another pillar of this strategy. A memorandum of understanding was signed between MP Materials — a major U.S. rare earths firm — and Saudi Arabia’s state miner Ma’aden to jointly develop rare earth supply chains, including mining, separation and magnet production. This kind of collaboration could position Saudi Arabia not just as a source of raw minerals but as a processing and manufacturing hub for advanced materials needed by global industries.

Moreover, Saudi mineral resource efforts are attracting a wide range of international attention. Alongside U.S. engagement, Saudi Arabia has extended its reach by inviting investment from firms in Australia, Canada and other mining powerhouses, signaling the Kingdom’s ambition to be a major player in the global mineral market.

Industrial Growth and Economic Transformation

The transformation of Saudi Arabia’s mining sector is backed by significant investment plans. The Kingdom has unveiled multi‑billion‑dollar strategies aimed at integrating mining into broader industrial ecosystems. This includes investments toward downstream processing, smelting, value‑added manufacturing, and mineral‑based supply chains that extend beyond simple extraction.

These efforts dovetail with broader trends in global economics: as nations and firms pivot toward clean energy, automation and advanced defense technologies, the demand for rare earths and other critical minerals continues to grow sharply. Saudi Arabia’s large and diversified mineral base gives it a rare advantage in responding to this demand, especially if it can move up the value chain into refining and manufacturing.

Challenges and Opportunities Ahead

While Saudi Arabia’s mineral potential is massive on paper, realizing that value will require overcoming several key challenges. Extracting rare earths and other minerals can be capital‑intensive and technologically complex, often requiring sophisticated processing facilities and specialized expertise. Establishing these capabilities domestically will take time and sustained investment.

Environmental concerns are another factor. Mining operations — particularly for rare earths — can carry significant ecological and social impacts. Implementing environmental, social and governance (ESG) standards will be essential for attracting global investment and ensuring sustainable development.

Additionally, Saudi Arabia’s ability to challenge well‑established mining nations like Australia, Canada or China will depend on how effectively it can integrate into global supply chains and offer competitive advantages such as regulatory incentives, infrastructure support and geopolitical stability.

Looking Forward: A New Mineral Power Player?

Saudi Arabia’s declaration of $2.5 trillion in mineral reserves marks a potential turning point in its economic narrative and in the global competition for critical materials. As fossil fuels gradually give way to renewable energy and digital technologies, the minerals that power these systems are becoming just as strategically important as oil once was.

If the Kingdom successfully implements its mining ambitions — building not just extraction capacity but also processing and industrial ecosystems — it could emerge as a major hub in the rare earths and critical minerals supply chain. This would not only support Saudi economic transformation under Vision 2030 but also offer a strategic alternative to traditional rare earth suppliers at a time when global supply chain security is increasingly a geopolitical priority.

In a world where minerals are the raw materials of tomorrow’s technologies and energy systems, Saudi Arabia’s trillion‑dollar mineral wealth positions it as a potential heavyweight in the race for rare earths and strategic resources — a development with implications far beyond the Kingdom itself.