Saudi Arabia’s mining minister, Bandar Alkhorayef, remains confident that barriers to investment in Canada’s mining sector will not hinder dealmaking by the kingdom. Speaking in Toronto, where he is part of a Saudi delegation meeting with Canadian mining companies, he stated, “I have no reason to believe there will be an issue.”
Alkhorayef emphasized that he expects Saudi state-backed funds to acquire stakes in Canadian metals businesses as the kingdom aims to enhance its influence in the global mining industry. He believes that Canada’s regulations concerning foreign investments will not impede these efforts.
In 2022, Canada introduced new rules that impose stricter scrutiny on investments from foreign state-owned entities, allowing approvals only “on an exceptional basis” if deemed a net benefit to Canada. While this tougher stance has complicated some investment attempts by Chinese state-backed firms, it did not prevent two Saudi entities from acquiring a 10% stake in Vale SA’s base metals unit, which operates the largest nickel mines in Canada.
As the global energy transition accelerates, Saudi Arabia is keen to secure access to critical minerals and develop a metals-processing industry. This initiative is central to the kingdom’s strategy to diversify its economy away from oil reliance.
