Riyadh: Jeddah Emerges as Key Hub for Copper and Zinc Metals with London Metal Exchange Warehouse
In a strategic move, Jeddah is poised to become a major center for copper and zinc metals as the renowned London Metal Exchange (LME) announces plans to establish a new warehouse in the city.
Enhancing Saudi Arabia’s Global Alloy Center Status
The LME is working towards enhancing Saudi Arabia’s position as a global alloy center by consulting on refining its warehouse location framework. This includes addressing provisions related to depot operator insolvency to ensure seamless access to metal assets for owners.
New Chapter in Industrial and Logistical Advancement
Pending the conclusion of the consultation on April 30, 2024, and subsequent policy adjustments, Jeddah’s coastal hubs will be officially designated as a delivery point. This marks a significant milestone in the city’s and the Kingdom’s industrial and logistical advancement.
Activation Process for Jeddah
Following the standard procedure for location listings, Jeddah will be activated as a delivery point three months after the initial warehouse company in the area receives approval.
LME’s Commitment to Expansion
LME CEO Matthew Chamberlain reaffirmed the exchange’s commitment to expanding its network and highlighted Saudi Arabia’s growing influence in the international alloy industry.
Positive Reception from Industry Leaders
Industry leaders, such as Farooq Shaikh, CEO of LogiPoint, expressed enthusiasm for the initiative, viewing it as a testament to the success of the Kingdom’s National Industrial Development and Logistics Program.
Future Collaboration and Development
Shaikh welcomed the LME’s intention to list Jeddah as a new delivery point for copper and zinc, emphasizing the city’s adherence to LME’s rigorous standards. He looks forward to further cooperation with LME and developing relationships with the international metals community to establish Jeddah and Saudi Arabia as a major metals logistics hub.
Transforming the Kingdom’s Industrial Landscape
The program aims to transform Saudi Arabia into a leading industrial powerhouse and a global supply chain hub in key growth sectors, including industry, mining, energy, and logistics.
About London Metal Exchange
Established in 1877, the London Metal Exchange is the international hub for industrial metals trading, handling a majority of non-ferrous alloy futures transactions. In 2023, it witnessed significant trading volumes, reflecting its pivotal role in the global metals market.