Agricultural Product Derivatives - GCC

GCC

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$66.53bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.29% resulting in a projected total amount of US$86.09bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 22.30m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in GCC is experiencing significant growth and development. Customer preferences in the GCC region are shifting towards more diverse investment options, including agricultural product derivatives.

Investors are increasingly looking for alternative assets to diversify their portfolios and hedge against market volatility. Trends in the market show a growing interest in agricultural product derivatives as a way to speculate on price movements in the global commodities market. This trend is driven by the region's strategic location between major agricultural producers and consumers, creating opportunities for investors to capitalize on price fluctuations.

Local special circumstances in the GCC, such as government initiatives to boost agricultural production and reduce reliance on food imports, are also driving growth in the agricultural product derivatives market. These efforts are aimed at increasing food security and promoting self-sufficiency in the region. Underlying macroeconomic factors, such as fluctuating oil prices and geopolitical tensions, play a significant role in shaping the agricultural product derivatives market in the GCC.

Investors are increasingly looking to diversify their portfolios and hedge against economic uncertainties, leading to a growing demand for agricultural product derivatives as a financial instrument.

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.