In a historic move aimed at boosting global metal trade, the London Metal Exchange (LME) announced today its plans to list the city of Jeddah, Saudi Arabia, as a new delivery center for copper and zinc. This decision follows the signing of an agreement with the Saudi Ministry of Industry and Mineral Resources last February to establish metal warehouses in the Kingdom.
🔸️What are the benefits of listing Jeddah as a delivery center?
✔️ Enhancing Trade: Jeddah will provide a new alternative for metal delivery, facilitating access to the global market for traders in the Middle East and North Africa MENA. This will lead to an increase in trade volume and create new growth opportunities in the region.
✔️ Increasing Liquidity: Listing Jeddah will attract more participants to the Metal Market, increasing liquidity and more stable prices.
✔️ Creating Job Opportunities: The new warehouses will contribute to creating new Job Opportunities in Saudi Arabia, which will help to develop the local economy.
🔸️What is the significance of this step for Saudi Arabia?
The inclusion of Jeddah as a new delivery center for copper and zinc is an essential step in Saudi Arabia’s strategy to diversify its economy and increase its Non Oil exports. It also reflects the Kingdom’s commitment to developing its logistical infrastructure and enhancing its role as a regional trade hub.
🔸️What are the market expectations?
Market experts anticipate that the listing of Jeddah will positively impact the global metal trade. It will lead to increased market liquidity and create new opportunities for participants. Additionally, the demand for metals such as copper and zinc is expected to rise with the growth of the global economy, making Jeddah a strategic center for metal trade.
