Energy Product Derivatives - Egypt

Egypt

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$20.79bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.84% resulting in a projected total amount of US$27.61bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.05 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$26.91tn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 467.90k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Egypt has seen a gradual increase in activity and interest over recent years.

Customer preferences: Investors and traders in Egypt have shown a growing interest in Energy Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical assets.

Trends in the market: One prominent trend in the Energy Product Derivatives market in Egypt is the increasing adoption of online trading platforms, which have made it easier for retail investors to participate in derivative trading. This trend aligns with global developments in financial markets, where digitalization has democratized access to trading opportunities.

Local special circumstances: Egypt's strategic location as a key player in the energy sector, particularly in natural gas production and distribution, has contributed to the growth of the Energy Product Derivatives market. The country's efforts to modernize its energy infrastructure and attract foreign investments have also created a favorable environment for derivative trading activities.

Underlying macroeconomic factors: Macroeconomic factors such as geopolitical events, global energy prices, and regulatory reforms play a significant role in shaping the Energy Product Derivatives market in Egypt. As the country continues to focus on energy sector developments and economic reforms, the derivative market is likely to experience further growth and diversification.

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.