Cost excellence is a strategic imperative for unlocking Mideast's mining potential

In capital-intensive sectors, cost excellence is increasingly recognised as a key driver of competitiveness resilience, and sustainable value creation, Alexander Shvets and Renat Akimbitov, Managing Directors, Infrastructure and Capital Projects - Metals and Mining, Alvarez & Marsal Middle East, tell OGN

- BY ABDULAZIZ KHATTAK

INDUSTRIAL growth in Saudi Arabia and the UAE is gathering momentum under national diversification strategies.

Saudi Arabia's mining sector is accelerating toward becoming the third pillar of the Kingdom's diversified economy, supported by untapped resources valued at an estimated $2.5 trillion, according to the Ministry of Industry and Mineral Resources.

Similarly, the UAE is also advancing its industrial diversification through Operation 300bn, targeting growth in manufacturing, materials, and downstream processing.

These developments are central to long-term economic diversification strategies.

However, sustained growth depends not only on expanding capacity, but also on embedding disciplined cost control and financial transparency across operations.

In capital-intensive sectors such as mining, metals, and advanced manufacturing, cost excellence is increasingly recognised as a key driver of competitiveness, resilience, and sustainable value creation.

THE NEED FOR COST EXCELLENCE

Commodity price volatility, supply-demand imbalances, and evolving trade policies create a dynamic global operating environment.

This is particularly relevant for industries in the Middle East that rely on resource-based value chains.

Fluctuations in commodity prices, combined with capital-heavy infrastructure requirements, mean that operational margins can be quickly eroded without robust cost control measures.

In Saudi Arabia, regulatory reforms and institutions, such as the Saudi Geological Survey and Industrial Center, have created an enabling environment for investment in exploration, processing, and downstream industries.

In the UAE, initiatives such as the Make it in the Emirates campaign and the In-Country Value (ICV) program are incentivising domestic production and supply chain localisation.