Saudi considers new mining index in diversification push

Saudi Arabia is considering setting up a new metals and mining stock exchange index as it looks to expand its resources sector to diversify away from hydrocarbons, a senior government official said on Friday.

Mining Minister Bandar bin Ibrahim al-Khorayef told Reuters in an interview in Sydney that his team met with Australian counterparts to learn more about a mining index, similar to Australia’s ASX 300 Metals & Mining (XMM) sub-index (.AXMM) that lists metals and mining firms including producers of gold, steel and precious metals.

“It is something we are studying ... but we have not made up our mind if it would be successful,” Al-Khorayef told the media. “We have a secondary stock market in Saudi...its still evolving. We want to see if its better to have something for mining,” he said.

He did not say how many companies would potentially be included in the index, reported Reuters.

Saudi Arabia’s stock exchange consists of the Tadawul main market and a parallel market that companies can join with fewer reporting requirements.

Riyadh’s efforts to build an economy that is not dependent on oil include a shift towards mining.