Saudi Arabia seeks proposals for commodities exchange launch

• Aim is to strengthen capital markets
• Focus on mining and minerals sector
• October 31 proposal deadline

Saudi Arabia’s market regulator has invited proposals to launch a domestic commodities exchange, as the kingdom looks to deepen its capital markets and support its fast-growing mining sector.

The exchange “aims to strengthen the capital market infrastructure, expand the range of financial instruments in the Saudi Capital Market, and diversify its products,” the Capital Market Authority said in a statement on Wednesday.

Applicants have until October 31 to submit proposals, which should include facilities for metals derivatives contracts.

Alongside its capital markets ambitions, Saudi Arabia also wants to develop its domestic mining and minerals industry, which is to become “the third pillar” of the Saudi economy, according to Vision 2030.

Wednesday’s announcement follows a 2024 acquisition by the Saudi Tadawul Group, which runs the Saudi Exchange, of about a third of the Gulf Mercantile Exchange (GME).

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Formerly known as the Dubai Mercantile Exchange, the GME presents itself primarily as an energy futures market. In May it facilitated trades of a record 69 million barrels of oil.

Following the 2024 acquisition the GME said it intended to “unlock further opportunities in the energy, metals and agricultural commodity markets and support the ongoing transition to a sustainable economy through the launch of … derivative contracts.”

Saudi Arabia wants to become a regional capital markets centre, competing with neighbouring UAE. In February it was announced that Turkey also intends to establish its own commodities exchange.