InvestmentSaudi Arabia has nearly onefifth of the world's proven petroleum reserves. The government has exclusive rights over all the mineral deposits of the state. In 2010, the production of lowgrade iron ore, lowgrade bauxite, cement, clays, ethane, methane, propane, directreduced iron, lead, and pozzolana increased. The map of Saudi Arabia. Image Credit: CIA Factbook.
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Maaden and its subsidiaries Maaden Gold and Base Metals Co. (MGBM) and Saudi Company for Precious Metals are involved in exploration activities to locate precious metals and related minerals at many sites. MGBM currently operates five gold mines in Saudi Arabia and since 1988 has produced more than 4 million ounces of gold. KEFI Minerals, a gold and copper exploration company, has claimed to have located high grade gold and silver in the country after conducting several surveys. This discovery is likely to attract many investors. Mahd ad Dahab, which means Cradle of Gold, is one of the oldest mining sites in Saudi Arabia. The country has also opened many new mines such as the AsSuq and Ad Duwayhi. A 740,000 Mt/yr capacity aluminum smelter has been constructed in Ras Az Zawr by the joint venture of Maaden and Alcoa Inc. of USA and is slated to start functioning in 2013. Al Masane Al Kobra Mining Co. (AMAK), which is owned by local investors and the Arabian American Development Co
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The petroleum industry of Saudi Arabia accounts for 80% of its budget revenues, 90% of its export earnings, and 45% of the countrys GDP. The country is a leading producer of oil and natural gas, and is ranked eighth in terms of petroleum refining capacity in the world. Discovery of new oil fields by Saudi Aramco such as the Arsan, the AsSayd, the Namlan, and the Qamran oilfields and the Jalamid gasfield in 2010 will likely further increase the countrys importance in the global petroleum sector and boost its revenue. Natural gas production in Saudi Arabia has been steadily increasing. This was evident in the years 2008, 2009 and 2010, when production was 86,158 million m3 , 88,432 million m3 and 95,032 million m3, respectively.
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Saudi Arabia has taken several key measures to attract foreign funding. Some of them are as follows: 1. Joining the WTO in 2005 2. Construction of six economic cities around the country 3. Social development and infrastructure projects worth $373 billion to promote economic development between 2010 and 2014 According to recent reports, automation major Ventyx has inked a $2.8 million deal with MGBM as part of which the mining company will use Ventyxs mining operations software solutions in its four existing mines to improve planning and performance of its gold mining operations. MGBM has massive expansion plans for its gold mines in the near future with several new projects to be launched soon. According to experts, Saudi Arabia will continue to be the most significant supplier of petroleum to meet the everincreasing global demand. The government is now more open to private investment in mineral projects, which would definitely attract both domestic and international investors i
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