The esteemed London Metal Exchange (LME) has recently endorsed the renowned Red Sea port city of Jeddah in Saudi Arabia as an official warehouse delivery point for commodities such as copper and zinc. This significant development was announced on a recent Monday.
According to the LME, this new listing will be operational three months subsequent to the accreditation of the initial warehouse company at this burgeoning location.
Traditionally, LME-registered warehouses have been strategically positioned in locales with high net metal consumption or at premier transit centers like Rotterdam.
An audacious industrial growth and logistics strategy is currently being pursued by Saudi Arabia. This initiative is a key component of the kingdom’s broader Vision 2030 reform agenda which aspires to elevate the nation into a dominant global force across the energy, mining, logistics, and industry domains.
Back in March, the LME hinted at the potential inclusion of Jeddah as a novel delivery point, contingent on a consultative process regarding a technical modification to the LME warehouse framework.
Furthermore, the LME disclosed on the same Monday that it had made revisions to a specific clause within its policy concerning the approval of locations for delivery points. This clause pertains to the insolvency of warehouses, and the change was made post-consultation. The LME operates under the ownership of Hong Kong Exchanges and Clearing.
