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On the July 30th 2024, The Kingdom of Saudi Arabia’s Ports Authority (MAWANI) announced that Jeddah Islamic Port has been listed on the London Metal Exchange (LME). This places Jeddah Islamic Port among 450 platforms in 32 locations across America, Europe, and Asia. The listing of Jeddah Islamic Port on the LME provides new access to the global market on a large scale. This deal demonstrates the Kingdom of Saudi Arabia’s ongoing work to build itself into a global logistics hub in line with its Vision 2030 aims and its commitments to the International Maritime Organization (IMO).
The London Metal Exchange is one of the largest metal trading exchanges in the world and constitutes the global centre for industrial metals trading, where the majority of non-ferrous metal futures contracts are conducted. This strategic initiative is expected to boost market liquidity and provide an additional delivery option for materials. It aims to improve supply chain efficiency by reducing transportation and storage costs for materials and support the growth of the mining sector, by offering a more convenient trading platform for mineral materials.
The listing of Jeddah Islamic Port on the LME enhances its attractiveness to investors and confirms the port's pivotal role in supporting global trade. It also recognizes the importance of the port in regards to its position and its advanced capabilities. The Kingdom has been working to expand the capabilities across all ports to continue to facilitate effective global trade. This can be seen through the agreement between MAWANI and Rotterdam Port to develop Smart port technology made in 2023 and the development of the port of Oxagon in NEOM which will be fully autonomous when it launches.
The Kingdom of Saudi Arabia will continue to foster cooperative development in the maritime sector, enabling agreements of this nature to take place. Through Saudi Arabia’s commitments to its Vision 2030 goals and achieving wider goals within the IMO, it aims to build a stronger maritime industry and to build collaboration and cooperation between member states of the IMO. The Kingdom takes advantage of its strategic position in the Red Sea, through which 13% of the worlds trade passes. The connection to the LME will play a key role in the Kingdoms efforts to facilitated further trade and reflects the work it is undertaking to position itself as a global trade hub.
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