The London Metal Exchange (LME) has approved the Red Sea port city Jeddah in Saudi Arabia as a warehouse delivery point for copper and zinc, according to Reuters.
The listing will become active three months after the first warehouse company has been approved in the new location. It noted that warehouses registered with the LME are usually located in areas of net metals consumption or top transit hubs like Rotterdam.
Saudi Arabia is planning an ambitious industrial development and logistics program, Reuters noted in its report, that is part of a wider Vision 2030 reform plan. This will aid the kingdom in becoming a major global player in the energy, mining, logistics and industry sectors.
LME said in March it was planning to add Jeddah as a new delivery point, subject to consultation about a technical change to the LME warehouse framework.
The LME is owned by Hong Kong Exchanges and Clearing.Source: Reuters