The discussion related to critical minerals and rare earth elements (REE) have become significant because of the global pursuit of energy transition and defence modernisation, critical minerals— including lithium, cobalt, nickel, copper and rare earth elements. These minerals have emerged as pivotal for strategic autonomy. This category of critical minerals now occupies a critical juncture in the economic transformation and geopolitical strategies of Gulf states. The evolving discourse in the region indicates that the diversification process is essential for Gulf states to minimise their reliance on rentier incomes from hydrocarbon resources and to achieve technological sovereignty.
The Gulf states are articulating distinct critical mineral strategies, designed according to their resource capabilities, economic imperatives, and geopolitical aspirations. This diversification is not merely about mineral extraction, but it is about reshaping economic futures, forging new trade partnerships, and securing strategic leverage in a world where control over supply chains can define geopolitical power.
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Saudi Arabia: Integrated strategy and domestic capacity building
The kingdom stands at the forefront of the regional push into critical minerals, with its strategy deeply embedded within its broader Vision 2030. In fact, Riyadh has elevated mining and minerals to a core economic pillar. Under Vision 2030 and the National Transformation Program, the country aims to harness its vast underexplored mineral wealth to create new revenue streams, industrial capacity, and downstream value chains. Kingdom’s strategy encompasses geological surveying, regulatory reform, foreign partnership facilitation, exploration investment, and infrastructural development. Riyadh is directing capital into downstream processing and refining capabilities, identifying that capturing greater value within the supply chain enhances economic benefits and reduces exposure to global market volatility.
However, the Saudi policy also indicates dual prioritisation i.e., domestic capability and overseas investment. Through joint ventures and sovereign fund initiatives, Riyadh is positioning itself as a significant player in metals and minerals essential to clean energy and high technology. Also, it is partnering with Western firms and investment in resource projects abroad reflects a strategy targeted at building supply chain resilience while securing long-term access to critical inputs. From a geopolitical perspective, Saudi Arabia’s critical minerals strategy functions as a geoeconomic tool. By deepening ties with global industrial states and aligning with efforts to diversify supply from dominant producers in East Asia, Riyadh can leverage mineral assets both as economic drivers and as bargaining chips in broader strategic dialogues. In this context, its push into critical minerals reinforces Saudi Arabia’s intent to be a pivotal connection in emerging global supply networks for batteries, renewable infrastructure, and defence systems in the larger Middle Eastern region.
United Arab Emirates: Investment-led global outreach
The UAE’s approach to critical minerals is shaped by its strategy of strategic investment and global asset acquisition. Through state-linked investment entities and sovereign funds, the UAE has aggressively pursued stakes in existing mines and processing assets across Africa, the United States and beyond. In fact, the UAE is leading the way in critical mineral investments in Africa. This outward-oriented strategy takes advantage of the UAE’s financial strength, regulatory sophistication, and global connectivity. By securing ownership interests, the UAE captures exposure to critical commodities without the domestic geological constraints facing some neighbours. These investments also serve to anchor the UAE in global supply dynamics, where it seeks to play an intermediary role, i.e., connecting resource-rich production centres with end users around the world. The UAE also actively pursues bilateral and multilateral partnerships with entities keen on diversifying supply away from regions perceived as geopolitical or market risks. These initiatives underscore how critical mineral strategy has become interwoven with international economic diplomacy. These agreements indicate that not only extraction but also processing, recycling, and technology cooperation etc. has become an extended part of mineral diplomacy that echoes similar efforts in other partner nations.
Other Gulf States: Selective and complementary strategies
Beyond Saudi Arabia and the UAE, other Gulf states are charting roles that align with their unique capabilities and strategic priorities. Qatar, for instance, has chosen a targeted investment model, gaining financial exposure to established mineral firms through its sovereign wealth fund rather than undertaking large-scale operational ventures. This approach mitigates risk while maintaining participation in the sector’s growth.
Oman’s strategy emphasises domestic geological potential, particularly within ophiolite belts that may have chromite, cobalt, copper, and nickel. Although its mineral base is smaller, Muscat’s gradual expansion into exploration and foreign collaboration reflects a measured bid to contribute to national diversification goals.
Bahrain’s interest in deep-sea mining and exploratory ventures signals a willingness to engage in niche areas, notwithstanding the limited resource constraints.
Geopolitical implications and strategic alignments
The Gulf region’s critical mineral push is deeply intertwined with macroeconomic trends. Globally, demand for these mineral resources required for electric vehicles, renewable energy systems, advanced electronics, and defence technologies is projected to rise in the next decade. This surge is driven by decarbonisation efforts, industrial electrification, and the proliferation of digital infrastructure. For Gulf states, aligning with these trends offers an avenue to capture value chains that are both future-oriented and economically expansive.
Copper, in particular, being the foundational metal in electrified systems and grid infrastructure, with its demand trajectory rising, points towards a structural shift in global consumption patterns. The Gulf states’ increasing involvement in copper mining projects reflects anticipation of this shift. Simultaneously, regional producers, including those in aluminium, benefit from extensive price increases and premium markets. This reinforces the commercial viability of metal export strategies. These market signals encourage further investment and infrastructure development, creating a virtuous cycle of capability building and integration.
As major global players seek to diversify supply and reduce dependencies, the Gulf states’ money, wealth, strategic location, and emerging capacities make it an attractive partner in global supply chain realignment. Their (Gulf states') initiatives signal a new layer of geopolitical cooperation structured around economic security rather than traditional security paradigms. The cooperation framework also highlights the role of critical minerals as strategic assets in broader alliances. These arrangements also position Gulf producers within a network of trusted suppliers. This orientation offers both economic dividends and diplomatic leverage to Gulf states seeking resilient, diversified supply frameworks.
Challenges and forward prospects
However, for all this to successfully happen, it is necessary that the strategies of Gulf nations must navigate complex geopolitical scenarios, balancing relations with major powers and regional rivals. The evolution of these strategies indicates a sophisticated recalibration of alliances, where economics and geopolitics intersect in new, resource-centric alignments.
One of the foremost challenges that these Gulf nations can face is building domestic extraction and processing capabilities, which demands sustained investment, regulatory maturity, technological expertise, and environmental governance. Apart from this, international competition for assets, supply chain bottlenecks, and evolving market dynamics also present risks that will require nuanced policy responses. For these states with limited mining histories, this represents an institutional learning curve. However, regional strategies that combine domestic development with external partnerships provide a balanced pathway to capability building and risk mitigation. Gulf states’ foray into this critical mineral industry marks a transformational economic and geopolitical shift. These states are charting positions in a future where minerals underpin not only industrial growth but strategic autonomy and alliance formation. As global demand intensifies, the region’s evolving role will be critical in shaping resilient, diversified supply networks that support global transitions in energy, technology, and security.
