New HCSS report warns: The EU must act now to secure Europe’s competitiveness in the global minerals value chain
In 2016, Saudi Arabia launched Vision 2030, an ambitious reform agenda to diversify its economy away from oil. Guided by this new strategy, the Kingdom became a global mineral player in under a decade, with its state-owned mining company emerging as the largest multicommodity player in the Middle East and the 15th largest globally. This new HCSS snapshot analyses how Saudi Arabia developed its domestic capabilities, streamlined its licensing procedures, leveraged its financial resources, and deployed various diplomatic tools to secure a place in the mining sector.
More importantly, Assistant Analyst Laurence Krakow and Strategic Analyst Irina Patrahau examine how the EU can learn from Saudi Arabia’s reform agenda to strengthen its own mineral strategy. As Europe struggles to capture a significant share of the minerals value chain, Saudi Arabia can serve as an example of proactive and effective policymaking.
The key findings are:
- The EU should be more proactive in identifying the strategic projects that align with its ambitions, moving away from the passive approach currently embedded in the “strategic project” scheme, which is both costly and risky for potential investors.
- The EU should provide targeted financial support to improve the effectiveness of strategic project designation. Although a step in this direction has been taken with the adoption of the RESourceEU Action Plan, timely implementation is essential to compete with faster-moving actors.
- The EU should target its international engagement more strategically by identifying European strengths and acting in a coordinated manner. While structural constraints limit the EU’s ability to fast-track the development of its mining sector, its commitment to sustainable value chains and mutually beneficial partnerships can give it an advantage in bilateral engagements, positioning it as a reliable and responsible partner
Lead author Laurence Krakow notes:
“By upholding its commitment to sustainable supply chains and mutually beneficial partnerships, the EU can position itself as an attractive and reliable partner that brings added value.”
Author: Laurence Krakow
Editor: Irina Patrahau
Cover photo: Canva
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