Driven by deepening global multipolarity and conflicts such as the Russia-Ukraine war and Middle East tensions, Gulf states including Saudi Arabia, the UAE, and Qatar are actively expanding into critical minerals to bolster supply chain security and resilience as part of their long-term economic diversification strategies, prompting a rapid shift in global supply chain dynamics.
The International Energy Agency's July report, the Global Critical Minerals Outlook 2026, highlighted the Middle East's pivotal role in global critical material supply chains, noting the region provides about a quarter of the world's sulfur and that the Strait of Hormuz carries half of global seaborne sulfur trade routes. By 2025, Gulf Cooperation Council countries produced roughly 6.5 million tonnes of aluminum, equivalent to 9% of global capacity, while Qatar accounts for about one-third of global helium output. Saudi Arabia's gold, bauxite, and rare earth resources alone are valued at approximately $2.5 trillion, providing a solid material foundation for Gulf states' critical minerals ambitions.
Reducing dependence on oil and gas while achieving economic structural diversification has long been a strategic priority for Gulf nations. As major global economies grow increasingly anxious about the security of critical mineral supply chains and rush to find alternatives, Gulf states have identified a pathway to economic diversification by leveraging their abundant capital, low energy costs, and strategic geographic location to absorb transferred critical mineral processing capacity.
Saudi Arabia, under its Vision 2030 framework, has established mining as the nation's third industrial pillar after oil, gas, and petrochemicals, planning to raise the sector's contribution to GDP from SAR 64 billion in 2015 to SAR 240 billion by 2030 while creating 200,000 direct and indirect jobs. The kingdom has been refining its mining investment framework, permitting 100% foreign ownership of mining ventures under the updated Mining Investment Law, and compressing licensing timelines to between 30 and 90 days for select permits. In November 2025, Riyadh signed a strategic framework agreement with Washington on critical minerals cooperation, with Saudi Arabian Mining Company inking a deal with US-based MP Materials to establish rare earth separation and refining capacity within the kingdom, potentially extending into magnet production. Additionally, US Critical Metals Corporation signed a $1.5 billion term sheet for a rare earth processing plant joint venture with a Saudi multinational industrial group. Domestically, on August 18, Saudi Aramco and Saudi Arabian Mining Company formed a joint exploration venture focused on copper, zinc, lead, and rare earth elements in the kingdom's western regions.
The UAE is prioritizing the deployment of sovereign capital, industrial investment, and international logistics networks to expand overseas mining assets. In February, Washington and Abu Dhabi signed a critical minerals cooperation framework agreement covering mining, processing, and recycling. In Africa, UAE-based International Resources Holding has secured mining rights through equity acquisitions and joint ventures, including the Bisie tin mine in the Democratic Republic of Congo, Zambia's Mopani copper mine, and Angola's Kitungo and Munenga iron ore projects. In Central Asia, the UAE signed mining development and cooperation memorandums of understanding with Uzbekistan and Kazakhstan this year.
Qatar is pursuing a comparatively conservative, investment-led approach. The Qatar Investment Authority, among the world's largest sovereign wealth funds, has directed $180 million into Ireland-based critical minerals investor TechMet Ltd and $500 million into Canada's Ivanhoe Mines, aiming to deploy capital across the critical minerals sector for sovereign wealth growth while avoiding the risks associated with heavy assets and project operations. Notably, Qatar joined the US-led Silicon Peace Declaration on January 12, becoming the first Gulf nation to enter the coalition, and will collaborate with member states on polysilicon refining and processing to establish a comprehensive silicon supply chain spanning raw materials, design, manufacturing, and technology applications.
China remains an indispensable partner in Gulf states' critical minerals expansion, with Chinese enterprises already participating at every stage of the value chain. At the geological level, the China Geological Survey signed a contract with Saudi Arabia's Ministry of Industry and Mineral Resources in 2022 for detailed geological mapping of the Arabian Shield. On engineering, China Chemical Engineering Group and Sinopec Nanjing Engineering are deeply embedded in Saudi Arabian Mining Company's phosphate projects. In investment, aluminum giant Sunstone Development Co signed a joint development agreement with Emirates Global Aluminium to build pre-baked anode production capacity. These engagements demonstrate irreplaceable cooperation space between Gulf states and China across engineering capability, technology equipment, and industrial capital.
China and Gulf nations share aligned objectives and complementary capabilities in safeguarding critical minerals supply chains. Gulf states contribute capital and energy advantages, while China offers complete mineral processing technologies, equipment manufacturing capacity, and substantial market demand. Beyond the political narrative of "de-risking" promoted by Western powers, building a new critical minerals landscape that genuinely serves China-Gulf strategic partnership and mutual interests constitutes the essential response to the latest round of global supply chain restructuring.
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