Saudi Arabia increases mineral potential projections by 90% to $2.5tn

Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted that the revision is based on discoveries related to rare earth elements and an upswing in mineral volumes. AN Photo
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Updated 10 January 2024
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Saudi Arabia increases mineral potential projections by 90% to $2.5tn

RIYADH: Saudi Arabia has elevated its projections for undiscovered mineral potential by 90 percent to $2.5 trillion, as stated by the minister of industry and mineral resources.  

Speaking during the opening remarks of the third Future Minerals Forum, Bandar Alkhorayef highlighted that the revision is based on discoveries related to rare earth elements and an upswing in mineral volumes.  

The minister said: “I am delighted to announce that our estimation for the Kingdom’s untapped mineral potential has increased from $1.3 trillion to $2.5 trillion, an increase of 90 percent.”   

He added: “This is based on new discoveries in the form of rare earth elements and the combination of the increase of volumes in phosphate, gold, zinc and copper as well as the revaluation of these minerals.” 

Alkhorayef further explained that this is only built on 30 percent of the Arabian Shield exploration suggesting that there is more to be discovered. In addition, it clearly shows that with more investment in exploration, it is possible to maximize the endowment potential.  

The minister also announced that the forum will witness signing of deals worth SR75 billion ($20 billion), driving research and development technology upstream and other value chain opportunities.  

“Today, we are at a historical point where minerals are at the spotlight as vital elements for the energy transition, food security and for global development,” Alkhorayef said.  

The minister also expressed his delight as he revealed many key initiatives, beginning with the exploration incentive program in partnership with the Ministry of Investment, which has a budget of more than $182 million.  

“This program will de-risk investments in our exploration securing to enable new commodities, greenfield projects, and junior miners. In addition, and to drive the existing future of the exploration sector, we are announcing the fifth and sixth rounds of licensing programs offering access to 33 exploration sites this year,” he continued.  

Looking at exponential progress made on the key initiatives the Kingdom agreed on last year, Alkhorayef announced to offer country-sized sites for exploration beginning with the Jabal Sayid Mineral Belt spanning over 4,000 sq. km.  

During the high-level ministerial roundtable meeting on Tuesday, Alkhorayef stated that the Kingdom has endorsed a detailed roadmap for the development of a regional critical mineral framework to promote global collaboration and maximize value creation in supplier countries.  

“We agreed on further work on exploring value chain creation opportunities for green metal hubs in the region, enabled by new technologies and renewable energy which we consider draft sustainability, expectations to be incorporated into the framework,” the minister said.  

He added: “We endorsed a roadmap for the creation of Mineral Innovation and Acceleration Park, the first phase of a global network of centers of excellence. All of this is proof that we are turning talk into action.”  


Japan’s finance minister calls US Treasury holdings ‘a card’ in tariff talks with Trump

Updated 24 sec ago
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Japan’s finance minister calls US Treasury holdings ‘a card’ in tariff talks with Trump

  • Japan is the largest foreign holder of US government debt, at $1.13 trillion as of late February
  • The US is due to soon begin imposing a 25 percent tariff on imported vehicles and auto parts, as well as an overall 10 percent baseline tariff
TOKYO: Japan’s massive holdings of US Treasurys can be “a card on the table” in negotiations over tariffs with the Trump administration, Finance Minister Katsunobu Kato said Friday.
“It does exist as a card, but I think whether we choose to use it or not would be a separate decision,” Kato said during a news show on national broadcaster TV Tokyo.
Kato did not elaborate and he did not say Japan would step up sales of its holdings of US government bonds as part of its talks over President Donald Trump’s tariffs on exports from Japan.
Earlier, Japanese officials including Kato had ruled out such an option.
Japan is the largest foreign holder of US government debt, at $1.13 trillion as of late February. China, also at odds with the Trump administration over trade and tariffs, is the second largest foreign investor in Treasurys.
Kato stressed that various factors would be on the negotiating table with Trump, implying that a promise not to sell Treasurys could help coax Washington into an agreement favorable for Japan.
Trump has disrupted decades of American trade policies, including with key security allies like Japan, by i mposing big import taxes, or tariffs, on a wide range of products.
A team of Japanese officials was in Washington this week for talks on the tariffs.
The US is due to soon begin imposing a 25 percent tariff on imported vehicles and auto parts, as well as an overall 10 percent baseline tariff. The bigger tariffs will hurt at a time when Japanese economic growth is weakening.
Asian holdings of Treasurys have remained relatively steady in recent years, according to the most recent figures.
But some analysts worry China or other governments could liquidate their US Treasury holdings as trade tensions escalate.
US government bonds are traditionally viewed as a safe financial asset, and recent spikes in yields of those bonds have raised worries that they might be losing that status due to Trump’s tariff policies.

How Kawasaki Frontale banished continental woes to face Al-Ahli in AFC Champions League Elite final

Updated 14 min 18 sec ago
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How Kawasaki Frontale banished continental woes to face Al-Ahli in AFC Champions League Elite final

  • Saudi Arabia’s last team standing will welcome rejuvenated Japanese opponents on Saturday night in Jeddah

AUSTRALIA: Football works in mysterious ways at times and that is certainly the case for Kawasaki Frontale and their exploits on the continent.

For five seasons between 2017 and 2021 under the guidance of Toru Oniki they almost completely dominated the J. League, winning four league titles and finishing fourth in the only year they missed out.

When you include their third-place finish in 2016, for a six-year stretch they never finished outside the top four. They were Japan’s premier domestic football club by some distance.

But when it came to Asia, they floundered. Think of the internet meme comparing a dog built like a bodybuilder and a small pup, and that encapsulates the exploits of Kawasaki in Japan as opposed to Asia.

In six continental campaigns from 2017 to 2023, their best finish was a quarterfinal in 2017 when they squandered a 3-1 lead from the first leg to lose 4-1 in the second leg to fellow J. League side Urawa Reds, who subsequently went on to win the title.

It was a loss that exposed a soft underbelly, something that had been a criticism of the team for the decade prior, having come so close but never managing to get over the line for a maiden J. League title.

They finished runners-up in 2006, 2008 and 2009, and third in 2013 and 2016.

That loss in the quarterfinal of 2017 came just months before they clinched their first J. League title, which seemed to flick a switch in their mentality, at least in Japan, anyway.

On the continent they continued to struggle.

In 2018 and 2019 they failed to get out of the group stage, winning just two of 12 games in the process. Another group stage exit followed in 2022, bookended by Round of 16 appearances in 2021 and 2023.

But it fell well short of expectations for a side so dominant in arguably Asia’s best league. And which had overseas and national-team stars like Kaoru Mitoma, Kengo Nakamura, Shogo Taniguchi, Hidemasa Morita, Ao Tanaka, Miki Yamane, and Reo Hatate.

It was a squad stacked with talent, but having lost so many to European football Kawasaki have returned to the pack in recent years, struggling to maintain their excellence, with back-to-back eighth-place finishes.

At the end of last season, Oniki moved to Kashima Antlers (who are currently top of the table in Japan) and was replaced with Shigetoshi Hasebe, a more pragmatic-minded coach from Avispa Fukuoka.

So football being as it is, of course it is this season of change and transition that has Kawasaki on the precipice of achieving what they never could during their dominant reign — being crowned Kings of Asia.

After finishing second in the League Stage of the East Zone, they found their way past Chinese heavyweights Shanghai Shenhua in the Round of 16 but arrived in Jeddah with very little expectation upon them.

They needed extra time to sneak their way past perennial Qatari champions, Al-Sadd. A semifinal clash against Al-Nassr’s bevy of international stars was expected to be their end point, but would still have been considered a success given their current status as a club.

Hasebe and his troops had other ideas, however.

Perhaps able to play without the burden of expectation, which seemed to weigh heavily on the shoulders of Al-Nassr, it was Frontale who were able to take control and look the most at ease.

Tatsuya Ito’s sensational volley opened the scoring, and after Sadio Mane equalized, it was the pressing of Ito that created the opportunity for their second. Yuto Ozeki, part of a new generation of stars beginning to emerge, finished off, for a surprise lead going into half-time.

When the ageless Akihiro Ienaga scored to make it 3-1, very few could believe what they were seeing. With a starting XI having just one foreign player and an attack featuring players of 19 and 20, with another 20-year-old in the heart of defense, this should not have been possible.

“Our two young players stepped up,” Hasebe said after the game of Ozeki and Soma Kanda, who are both so inexperienced that neither even has a Wikipedia page.

“They may still be developing but they’ve gained experience at the under-20 level. Their main job was to contain (Al-Nassr midfielder Marcelo) Brozovic but they also contributed well going forward.

“Discipline and attitude were key tonight. I’ve spoken with the players regularly to instill this mindset and they responded well. Everyone showed great commitment. This is the football we’ve been working towards.”

Also speaking after the game, goalscorer Ito said this was as much a victory for Japanese football as it was for Kawasaki.

“This isn’t just important for our club, it means a lot for the J. League as well. It shows the level of Japanese football. Before the game, the manager told us we came here to change things and make history. I hope we can complete that mission in the next match.”

Having made it this far against the odds, there would be few willing to say they now cannot go all the way and create that history, and in the process become the seventh Japanese club to lift continental silverware.

It is the type of unpredictability that makes football the game we all love. Sometimes it does not make sense, but that is also what makes it so beautiful.


Think local: How startups can successfully expand into Saudi Arabia’s fast-growing market

Updated 19 min 8 sec ago
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Think local: How startups can successfully expand into Saudi Arabia’s fast-growing market

RIYADH: Saudi Arabia’s rapidly expanding market presents lucrative opportunities for startups, but successful entry requires careful planning and a deep understanding of the local landscape.

Industry experts told Arab News that companies looking to expand into Saudi Arabia must focus on key factors such as securing regulatory approvals, ensuring financial stability, hiring the right talent, and adapting to the local culture.

By prioritizing these elements, businesses can establish a strong foothold in one of the Middle East’s most lucrative markets.

Regulatory landscape

Regulatory compliance is one of the primary hurdles for startups entering the Saudi market. While the country is actively fostering entrepreneurship and foreign investment, businesses must follow strict licensing and legal requirements.

Mohammed Al-Zubi, managing partner and founder of Nama Ventures, emphasized the need for startups to thoroughly understand and prepare for regulatory processes.

“While Saudi Arabia is opening up to startups, businesses must secure the right MISA (Ministry of Investment) licensing, sector approvals, and legal structures. Many founders underestimate the process and should plan accordingly,” Al-Zubi said in an interview with Arab News.

Failing to navigate these regulatory frameworks can lead to operational delays, legal complications, or financial penalties.

Mohammed Al-Zubi, managing partner and founder of Nama Ventures. Supplied

Paula Tavangar, chief investment officer of Injaz Capital, echoed this, noting that “compliance with Saudi-specific regulations, including licensing, Saudization requirements, and sector-specific rules, is also essential from day one.”

She emphasized that while Gulf Cooperation Council countries may appear similar, “successfully entering the Saudi market has its own very unique economic landscape, regulatory environment, and consumer behavior.”

The Ministry of Investment has streamlined processes to encourage foreign investment, but businesses must still comply with industry-specific guidelines and labor laws, including Saudization policies, which mandate hiring a certain percentage of nationals from the Kingdom.

Beyond legal compliance, establishing local credibility is crucial. Saudi businesses often prefer working with entities that demonstrate a long-term commitment to the market.

Tavangar stressed that “building an on-the-ground presence in Saudi Arabia is not optional — it’s central to gaining traction.”

She added that “Saudi stakeholders generally prefer working with companies that are physically present, engaged locally, and committed to contributing to the Kingdom’s Vision 2030 goals.”

The regulatory framework is evolving to attract foreign startups, with the Saudi government offering multiple incentives to support early-stage businesses.

“The Saudi government actively supports foreign startups through initiatives like the National Transformation and Development Program, which can assist with relocation logistics and business setup,” Tavangar said.

This means startups should not view Saudi Arabia as a short-term expansion play but rather as a core component of their growth strategy.

Paula Tavangar, chief investment officer of Injaz Capital. Supplied

Financial preparedness

Expanding into Saudi Arabia requires significant financial resources. From securing office space to investing in marketing and hiring local employees, the costs can add up quickly.

Startups must assess their financial stability before making the move, ensuring they have the necessary capital to sustain operations during the initial stages of expansion.

Tavangar pointed to the financial realities of entering the Kingdom. “Financial readiness is key. Costs associated with setting up in Saudi — such as obtaining a foreign investment license through MISA, setting the entity, renting office space and hiring local talent — can add up quickly,” she said.

Setting up operations in the Kingdom comes with significant financial obligations that startups must prepare for.

These include licensing, incorporation costs, and office rental, which can be partially offset through available public initiatives. “There are multiple low-cost co-working space options in addition to free spaces through accelerator programs,” Tavangar noted.

She also highlighted the importance of leveraging public-private support schemes.

“Again, NTDP has a program that can sponsor 50 percent of employee salaries for the startups that require the support,” she said, underscoring the need for early-stage companies to budget carefully and align with available national resources.

In an interview with Arab News, Ahmed Mahmoud, CEO of DXwand, a startup that has recently expanded to Saudi Arabia, stressed the importance of financial resilience.

“A startup should have strong financial stability, consistent revenue growth, and a proven market presence. It should be well-funded with enough capital to sustain operations for at least a year after expansion,” he explains.

Mahmoud encourages startups to evaluate their expenses closely and tailor their pricing models to remain competitive within Saudi Arabia’s evolving market landscape.

“To succeed in Saudi Arabia, startups must carefully assess their unit economics and cost structures. A strong balance between customer lifetime value and customer acquisition cost is crucial for long-term profitability,” Mahmoud said.

Other financial considerations include managing operational expenses such as office leases, logistics, and employee salaries. 

Localization costs — such as translating marketing materials into Arabic, adapting services to cultural preferences, and ensuring compliance with local regulations — should also be factored into financial planning. 

Talent acquisition 

One of the challenges of expanding into Saudi Arabia is finding and retaining the right talent.

Al-Zubi advises startups to take a strategic approach to talent acquisition. “While Vision 2030 initiatives are fostering a skilled workforce, specialized tech and startup talent can still be limited. Startups should leverage local hiring programs, university partnerships, and experienced regional hires,” he said. 

Hiring Saudi nationals is not only a regulatory requirement in certain sectors but also a competitive advantage.

Local employees bring market insights, cultural understanding, and access to networks that can help businesses establish stronger connections. 

“Founders should hire local leadership, engage with stakeholders, and spend time in-market. Remote operations rarely succeed in Saudi Arabia,” he explains. 

Market localization 

Saudi Arabia is a relationship-driven market where trust and personal connections play a significant role in business success. 

Startups that fail to adapt to local consumer behavior and cultural expectations may struggle to gain traction. 

Al-Zubi highlights the importance of cultural adaptation. “Startups must localize offerings, marketing, and operations to fit local consumer behavior. Strong local partnerships can accelerate trust and market entry,” he said. 

Mahmoud also underscored the importance of branding and culturally relevant marketing strategies. 

“Localization isn’t just about language — it includes pricing models, payment preferences, and customer experience. Businesses that invest in culturally adapted services enhance trust and engagement,” he noted. 

Tavangar emphasized that “the local context is very important” adding: “While in the UAE we observe very successful implementation of business models that worked in the west, Saudi Arabia has a different business environment, very tailored to the local demand and culture.”

Strategic partnerships 

Establishing partnerships with local businesses, distributors, and investors can accelerate market entry and growth. 

Saudi companies prefer working with brands that demonstrate commitment and credibility, and forming strategic alliances can help startups gain that trust. 

“Building local partnerships with investors and distributors isn’t just helpful — it’s a game-changer. It boosts credibility and makes market entry smoother,” Mahmoud said. 

Tavangar added: “A local partner who has ‘skin in the game’ can significantly aid in navigating both the cultural and business landscapes.” 

Ahmed Mahmoud, CEO of DXwand. Supplied

Leveraging digital transformation 

As Saudi Arabia accelerates its digital transformation, startups leveraging advanced technologies like artificial intelligence, automation, and cloud infrastructure are well-positioned to gain a market advantage. 

The Kingdom’s investment in smart cities, fintech, and e-commerce presents opportunities for tech-driven companies to scale quickly. 

Mahmoud highlights the importance of embracing technology as part of a long-term strategy. 

“With Saudi Arabia going through a rapid digital transformation, there’s a huge opportunity in e-commerce and fintech, both of which align with Vision 2030’s innovation goals,” he said. 

Additionally, businesses that set up a regional headquarters in the Kingdom can benefit from government incentives, including potential tax breaks and funding support. 

By taking a long-term approach and investing in local partnerships, cultural adaptation, and digital innovation, startups can position themselves for sustainable growth in one of the Middle East’s most dynamic economies. 

As Al-Zubi said: “Startups that immerse themselves in the market, build strategic partnerships, and adapt to Saudi dynamics will find the most success.”


Greece arrests man on suspicion of spying for Russia

Updated 25 min 40 sec ago
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Greece arrests man on suspicion of spying for Russia

  • The source added that the suspect, who had served in the Russian army in his youth, had apparently been enlisted by Russia’s GRU military intelligence service via an intermediary
  • The Greek port of Alexandroupolis has been a key gateway for the American military

THESSALONIKI: Greek authorities have arrested a man in the strategic port city of Alexandroupolis on suspicion of photographing supply convoys on behalf of Russia, police said.
The suspect, a 59-year-old Greek citizen of Georgian descent, was arrested in the northeastern city on Tuesday and on Friday was taken before an investigating magistrate, according to police and media reports.
The man “confessed to taking photos and video of military material, acting on behalf of another person to whom he sent the footage via an encrypted application,” the police statement said in a statement released on Tuesday.
A police source told AFP this week that the man, who has identified himself as a house painter, was targeting military convoys to Ukraine, according to footage retrieved from his cellphone.
The source added that the suspect, who had served in the Russian army in his youth, had apparently been enlisted by Russia’s GRU military intelligence service via an intermediary.
Greek media have reported that this intermediary was a Georgian man with organized crime links living in Lithuania.
Despite historic ties to Russia, Greece has supported Ukraine since the start of the invasion.
The Greek port of Alexandroupolis has been a key gateway for the American military, used to transport supplies into Europe under a mutual defense pact.


Top UN court wraps a week of hearings on humanitarian aid to Gaza

Updated 2 min 57 sec ago
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Top UN court wraps a week of hearings on humanitarian aid to Gaza

  • The proceedings are taking place as the humanitarian aid system in Gaza is nearing collapse and ceasefire efforts remain deadlocked
  • Israel has blocked the entry of food, fuel, medicine and other humanitarian supplies since March 2

THE HAGUE: The top United Nations court on Friday wraps a week of hearings on what Israel must do to ensure desperately needed humanitarian aid reaches Palestinians in Gaza and the occupied West Bank.
Last year, the UN General Assembly asked the International Court of Justice to give an advisory opinion on Israel’s legal obligations after the country effectively banned the UN agency for Palestinian refugees, the main provider of aid to Gaza, from operating.
Experts say the case could have broader ramifications for the United Nations and its missions worldwide.
The hearings are taking place as the humanitarian aid system in Gaza is nearing collapse and ceasefire efforts remain deadlocked. Israel has blocked the entry of food, fuel, medicine and other humanitarian supplies since March 2. It renewed its bombardment on March 18, breaking a ceasefire, and seized large parts of the territory, saying it aims to push Hamas to release more hostages.
Israel denies deliberately targeting civilians and aid staff as part of its war with Hamas and did not attend the hearing. The country did provide a 38-page written submission for the court to consider.
What is at stake?
The hearings focused on provision of aid to the Palestinians, but the UN court’s 15 judges could use their advisory opinion to give legal guidance on the powers of the world body.
“The court has the opportunity to clarify and address questions about the legal immunities of the United Nations,” Mike Becker, an expert on international human rights law at Trinity College Dublin, told The Associated Press.
Advisory opinions issued by the UN court are described as “nonbinding” as there are no direct penalties attached to ignoring them. However, the treaty that covers the protections that countries must give to United Nations personnel says that disputes should be resolved through an advisory opinion at the ICJ and the opinion “shall be accepted as decisive by the parties.”
“The oddity of this particular process,” Becker said, “is a clear response to any argument that the opinion is nonbinding.”
What has the ICJ been tasked with answering?
The resolution, sponsored by Norway, seeks the ICJ’s guidance on “obligations of Israel … in relation to the presence and activities of the United Nations … to ensure and facilitate the unhindered provision of urgently needed supplies essential to the survival of the Palestinian civilian population.” The United States, Israel’s closest ally, voted against it.
Israel’s ban on the agency, known as UNRWA, which provides aid to Gaza, came into effect in January. The organization has faced increased criticism from Prime Minister Benjamin Netanyahu and his far-right allies, who claim the group is deeply infiltrated by Hamas. UNRWA rejects that claim.
“We cannot let states pick and choose where the UN is going to do its work. This advisory opinion is a very important opportunity to reinforce that,” Becker said.
Do these proceedings matter for countries other than Israel?
Whatever the judges decide will have an impact beyond the current situation in Gaza, according to Juliette McIntyre, an expert on international law at the University of South Australia. “Are these immunities absolute or is there wiggle room? This is useful for where United Nations personnel are working in other places,” McIntire told AP.
An authoritative answer from the World Court can have influence beyond judicial proceedings as well. “Every time a norm is breached, the norm gets weaker. The advisory opinion in this case could push the norm back,” said McIntyre.
In separate proceedings last year, the court issued an unprecedented and sweeping condemnation of Israel’s rule over the occupied Palestinian territories, finding Israel’s presence unlawful and calling for it to end. The ICJ said Israel had no right to sovereignty in the territories, was violating international laws against acquiring territory by force and was impeding Palestinians’ right to self-determination.
According to McIntyre, the arguments presented this week reflect the opinion handed down just nine months ago. “Now the starting premise is that Israel is illegally occupying all of Palestine,” McIntire said.
What did the Palestinians and Israelis say?
On Monday, the Palestinian delegation accused Israel of breaching international law in the occupied territories and applauded the move to bring more proceedings to the court. “Our journey with the international institutions, be it Security Council, the General Assembly or the ICJ, is we are building things block on top of another block while we are marching toward the accomplishment of the inalienable rights of the Palestinian people, including our right to self-determination, statehood, and the right of the refugees,” Palestinian UN envoy Riyad Mansour told reporters.
Israel has denied it is in violation of international law and said the proceedings are biased. Israeli Foreign Minister Gideon Saar hit back at the case during a news conference in Jerusalem on Monday. “I accuse UNRWA, I accuse the UN, I accuse the secretary-general and I accuse all those that weaponized international law and its institutions in order to deprive the most attacked country in the world, Israel, of its most basic right to defend itself,” he said.
The court is expected to take months to deliver its opinion.