Saudi Arabia is changing how it pursues critical minerals. The shift was on display at the Future Minerals Forum in Riyadh in January 2026. There, the minister of industry and mineral resources, Bandar Al-Khorayef, announced that the Public Investment Fund plans to spin off Manara Minerals. Manara is the sovereign wealth fund’s arm for buying mineral assets abroad. “PIF is a large investor, but they don’t have mining expertise,” he said.

The comment was the clearest sign yet that the original plan has not worked as hoped. Manara was set up in 2023 to buy stakes in foreign mines and lock in supply. But in three years, it has closed just one major deal, paying $2.5 billion for a 10 percent stake in Vale Base Metals in 2024.

The rethink goes beyond corporate structure. Saudi Arabia is now steering its minerals effort toward processing and refining at home. The centerpiece is a rare earth refining and separation plant. The kingdom agreed to it with the American producer MP Materials and the United States Department of War in November 2025.

The shift is from owning small stakes in distant mines to controlling the middle of the supply chain. It reflects a broader change in how Gulf sovereign wealth can shape the minerals trade.

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Manara is a joint venture. Maaden, the state mining champion, holds 51 percent, and the Public Investment Fund holds the rest. Maaden is itself 67 percent owned by the fund, which manages about $925 billion in assets.