Agricultural Product Derivatives - Bahrain

Bahrain

The nominal value in the Agricultural Product Derivatives market is projected to reach US$2.54bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.18% resulting in a projected total amount of US$3.27bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,320.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 37.34k by 2029.

Market

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Analyst Opinion

The Agricultural Product Derivatives market in Bahrain is experiencing a significant shift in recent times.

Customer preferences: Customers in Bahrain are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The demand for these financial instruments is being driven by a growing awareness of the benefits of derivatives in managing risk and optimizing returns.

Trends in the market: One notable trend in the Bahraini Agricultural Product Derivatives market is the rising interest in commodity futures. Investors are showing a keen interest in derivatives linked to agricultural commodities such as wheat, corn, and soybeans. This trend is in line with the global surge in commodity derivatives trading, driven by factors such as geopolitical tensions, weather patterns affecting crop yields, and shifts in global demand.

Local special circumstances: Bahrain's strategic location as a financial hub in the Middle East has contributed to the growth of Agricultural Product Derivatives trading in the country. The well-established regulatory framework and the presence of sophisticated financial institutions have created a conducive environment for investors looking to participate in the derivatives market. Additionally, Bahrain's stable political landscape and strong economic fundamentals have instilled confidence in both local and foreign investors.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Bahrain is also influenced by broader macroeconomic factors. The country's efforts to diversify its economy away from oil dependency have led to a focus on sectors such as finance and technology. As Bahrain continues to position itself as a regional financial center, the demand for sophisticated financial products like Agricultural Product Derivatives is expected to grow. Moreover, the government's initiatives to promote capital market development and attract foreign investment are further bolstering the derivatives market in the country.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.