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The future of the mining industry in the Middle East: 2025

January 20, 2025 at 7:18 pm

An aerial view of mining site where heavy equipment to extract ores during early hours in Kirman, Iran on June 14, 2023 [Haydar Şahin – Anadolu Agency]

The global mining sector stands on the verge of fundamental change as it gears up for a decade in which it will need to invest $6 trillion, according to Saudi Arabia’s Minister of Industry and Mineral Resources. Into this global mix, the Middle East is emerging as a leader of mining innovation and sustainability, particularly in countries including Saudi Arabia, the UAE and Qatar.

I am inspired by my visits to the many mining companies in Qatar, as well as my memories of the mining sector, as it is same now in Qatar, a nation rich with resources but also requiring a massive area of quick modernisation, in general.

A region rich in potential

Historically known for its large reserves of oil and natural gas, the Middle East is now beginning to realise its untapped wealth in minerals. Saudi Arabia’s Vision 2030, a strategic plan aimed at reducing the nation’s reliance on oil, places mining at the centre of its plans to bolster growing levers of the economy.

The Kingdom’s untapped mineral reserves — an estimated $1.3 trillion worth including gold, phosphate and rare earth elements — challenge the region’s historic narrative of inaccessibility, highlighting potential contributions to global supply chains.

READ: UK to sign minerals partnership with Saudi Arabia

Qatar took a page out of the UAE’s playbook, using its technological and financial power to position itself as a regional centre for mining innovation. Qatar’s planned mining initiatives will diversify its economy, as the country has traditionally been more focused on natural gas. My trip to Qatar’s mining fields provided my first glimpse of the country’s conscious effort to balance extraction with sustainability efforts.

The game changer of digital transformation

Middle Eastern nations will spearhead a digital transformation that will characterise mining in 2025. Innovations like artificial intelligence (AI), machine learning, and blockchain are transforming the ways in which resources are discovered, extracted and leveraged. Digital twins, virtual copies of real mining operations, are allowing predictive maintenance and efficiency of operation, saving money and limiting environmental damage.

Saudi Arabia has already started utilising AI-driven resource mapping to maximise exploration efforts. As Klaus Schwab pointed out in The Fourth Industrial Revolution, “The velocity of current breakthroughs has no historical precedent. Unlike previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace.” This is echoed in the mining sector where new technologies are bringing economic development at a faster pace than ever before.

Blockchain is being using in the UAE to maintain transparency in the supply chain to not only address ethical issues but also to enhance trustworthiness in international partners. As emphasized in Don Tapscott’s Blockchain Revolution book, it is that “Blockchain is not just revolutionising the economy, it is a revolution in the way we think about trust itself.” This innovation has become all the more relevant as global investors demand to include ESG (Environmental, Social and Governance) criteria in their decision-making process.

Sustainability at the centre

Sustainability is key to the mining transformation that is reshaping the Middle East.

On a recent trip to Qatar, I looked at their water recycling systems, their in-house renewable energy in the mining operations, all indicative of a movement towards sustainability.

Qatar Mining Company (QM), one of the world’s largest mining companies, is leading efforts to cut carbon emissions through solar-generated electricity in phosphate mining. This commitment to greenism is evident throughout the end goals of Vision 2030.

READ: Turkiye joins Western-led crucial minerals group in bid to boost role in global minerals race

Regional cooperation and geopolitical consequences

The Middle East’s mining ambitions are also driving collaboration across the region. The GCC (Gulf Cooperation Council) countries are uniting forces and knowledge to form a joint mining strategy. This also includes sharing best practices on digital transformation and sustainability, which puts the region alongside the best of the world in mining.

But geopolitical hurdles persist. The region’s multifaceted politics could also affect the stability required for longer-term investments. Furthermore, competing with each other for foreign investment might also lead to tensions between countries of the Middle East. Solving these problems will need a unified response and collaborative effort, utilising the likes of the Future Minerals Forum held yearly at Riyadh.

Global education and workforce development

A digitally transformed mining industry requires a skilled workforce. Middle Eastern countries are investing in education and training programs to prepare their citizens. This will be done through partnerships with top global institutions and the establishment of local mining academies.

In Qatar, I spoke with local experts who highlighted the need to combine traditional knowledge with new technology. This method allows the region’s mining labour force to be innovative and also culturally grounded.

The road ahead

In 2025, the Middle East’s mining sector is a reflection of the region’s ability to evolve and innovate. With a focus on digital transformation, sustainability and regional collaboration, Saudi Arabia, the UAE and Qatar are among the leading players that are paving the way for responsible mining on a global scale.

As I sit and contemplate on my experiences in Qatar — and, broaden my engagement with the Middle East’s mining sector — I am reminded of Rumi’s words: “Try not to resist the changes that come your way. Instead, allow life to live through you. And stop worrying like your life is spinning in all directions. How do you know that your own side is better than the one to be?”

The transformation mining in the region is a process of adaptation and opportunity. It is a story of resilience and innovation, influencing not just the Middle East, but the future of mining everywhere.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.