Commodities - Bahrain

Bahrain

The nominal value in the Commodities market is projected to reach US$17.43bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.02% resulting in a projected total amount of US$22.27bn by 2029.
The average price per contract in the Commodities market amounts to US$0.03 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 453.10k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Bahrain showcases a growing interest in financial derivatives among investors and traders.

Customer preferences: Investors in Bahrain are increasingly turning to commodities as a way to diversify their investment portfolios and hedge against market volatility. With a desire to explore alternative investment options beyond traditional stocks and bonds, commodities provide a lucrative opportunity for potential returns.

Trends in the market: In Bahrain, there is a noticeable trend towards trading commodities such as oil, gold, and silver. The volatility in global oil prices has captured the attention of Bahraini investors who see potential profit opportunities in this market. Moreover, the appeal of gold and silver as safe-haven assets during times of economic uncertainty has led to a surge in trading activity in these commodities.

Local special circumstances: Bahrain's strategic location in the Gulf region, as well as its status as a financial hub, plays a significant role in driving the growth of the commodities market. The country's well-established financial infrastructure and regulatory framework provide a conducive environment for investors to engage in commodities trading. Additionally, Bahrain's close proximity to major oil-producing countries in the region enhances its appeal as a hub for oil trading activities.

Underlying macroeconomic factors: The stability of Bahrain's economy, coupled with its efforts to diversify away from oil dependence, has bolstered investor confidence in the commodities market. As the country continues to focus on developing its financial services sector, there is a growing interest among local and international investors to participate in commodity trading activities. Furthermore, Bahrain's strategic initiatives to attract foreign investment and promote economic growth have created a favorable environment for the expansion of the commodities 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.