Energy Product Derivatives - Bahrain

Bahrain

The nominal value in the Energy Product Derivatives market is projected to reach US$8.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.96% resulting in a projected total amount of US$10.82bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.10 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 84.71k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in Bahrain is a dynamic sector influenced by various factors.

Customer preferences: Customers in Bahrain show a growing interest in Energy Product Derivatives as they seek to diversify their investment portfolios and hedge against volatility in the energy markets. The demand for these derivatives is also driven by the desire to capitalize on price movements in the global energy sector.

Trends in the market: In Bahrain, there is a noticeable trend towards increased trading of Energy Product Derivatives, particularly in crude oil and natural gas. This trend is fueled by the country's strategic location in the Gulf region, which makes it a key player in the energy market. Additionally, the development of sophisticated financial instruments and trading platforms has made it easier for investors to participate in the market.

Local special circumstances: Bahrain's status as a major financial hub in the Middle East plays a significant role in the development of the Energy Product Derivatives market. The country's well-established regulatory framework and infrastructure attract both domestic and international investors looking to capitalize on the opportunities presented by the energy sector. Furthermore, Bahrain's strong ties with neighboring oil-producing countries provide unique insights and opportunities for market participants.

Underlying macroeconomic factors: The growth of the Energy Product Derivatives market in Bahrain is also influenced by broader macroeconomic factors such as global energy demand, geopolitical events, and regulatory developments. As the energy landscape continues to evolve, market participants in Bahrain closely monitor these factors to make informed investment decisions and manage risk effectively. Additionally, the country's efforts to diversify its economy and attract foreign investment play a crucial role in shaping the future of the Energy Product Derivatives market.

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.