"The application will go in the next 60-90 days. Being realistic it will be 6-9 months from the day the application goes in," Ambro founder Spencer told Reuters.
The LME declined to comment.
UK-based Ambro is 50 percent owned by Saudi conglomerate Xenel, which apart from owning Jeddah's port operator also owns a number of Saudi infrastructure companies, a steel mill and copper fabricator Saudi Cable.
Jeddah, on the Red Sea, could become a key hub for metals shipping and storage as it lies on a shipping artery for vessels travelling between Europe and China, Spencer said. It could also provide a transit point for copper enroute from East Africa.
The LME, the world's biggest metals marketplace, regulates warehousing locations and requires that warehouses must be set in regions of net consumption to avoid metal getting dumped by producers. Jeddah would be the second LME-listed Middle Eastern location after Dubai.
"The LME will require a review of Saudi fiscal and legal regulations and that is probably key," Spencer said.
"The next step for us is to clarify a few points, make a formal application, and get a Saudi delegation to visit the LME to clarify those issues," he added.
Spencer said Jeddah was likely to list for copper, zinc, lead, and steel and possibly aluminium, although the LME had some concerns over aluminium because the Middle East is a net producer.
The LME said in September it was considering setting up a storage and shipping warehouse in Taiwan, which could become its closest facility to top consumer mainland China.
The LME has 37 approved warehouse locations in the United States, Europe, the Middle East and Asia, according to the exchange's website. (Reuters)
