Agricultural Product Derivatives - Kuwait

Kuwait

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.58bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.40% resulting in a projected total amount of US$11.16bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.04 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 261.00k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Over the past few years, the Agricultural Product Derivatives market in Kuwait has shown a steady growth trajectory.

Customer preferences: Customers in Kuwait have shown a growing interest in Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The convenience of trading these financial instruments electronically has also contributed to their popularity among investors in the region.

Trends in the market: One notable trend in the Kuwaiti market is the increasing participation of institutional investors in Agricultural Product Derivatives. This trend is driven by the desire of institutions to manage risk more effectively and enhance their overall returns. Additionally, there has been a rise in demand for more sophisticated derivative products tailored to the specific needs of investors in Kuwait.

Local special circumstances: Kuwait's strategic location as a key player in the Middle East region has positioned it as an attractive market for Agricultural Product Derivatives. The country's stable political environment and strong regulatory framework have instilled confidence in investors, leading to a growing demand for these financial instruments. Moreover, the government's efforts to diversify the economy away from oil have also played a role in driving the development of the derivatives market.

Underlying macroeconomic factors: The economic diversification efforts in Kuwait, coupled with the increasing integration of the country into the global financial system, have created a conducive environment for the growth of Agricultural Product Derivatives. Furthermore, the low interest rate environment and the abundance of liquidity in the financial markets have encouraged investors to explore alternative investment opportunities, including derivatives trading.

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.