Al-Enma Bank and the Public Pension Agency (PPA) signed a Memorandum of Understanding (MoU) to set up a new Saudi Commodities Market at Riyadh’s King Abdullah Financial Center.
Finance Minister Dr. Ibrahim Al-Assaf, who chairs the PPA’s Board of Directors, called the agreement an economic milestone and said it would do much to promote Islamic-approved financial transactions.
The purpose of the market is to facilitate commodity exchange, increase local product exports, upgrade Islamic-friendly funding and provide jobs, Dr. Al-Assaf said. “The preliminary studies earlier conducted by both PPA and Al-Enmaa Bank showed the importance of such a market in the Kingdom of Saudi Arabia,” he said, noting that additional studies are needed to be finalized and approved by the Royal Court.
The number of financing contracts transacted in the global commodities markets has increased dramatically over the last decade. The London Commodities Exchange Market alone handles over $200 billion worth of deals annually.