Energy Product Derivatives - Northern Africa

Northern Africa

The nominal value in the Energy Product Derivatives market is projected to reach US$23.58bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.88% resulting in a projected total amount of US$31.38bn by 2029.
The average price per contract in the Energy Product Derivatives 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$26,910.00bn in 2024).
In the Energy Product Derivatives market, the number of contracts is expected to amount to 1.06m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Energy Product Derivatives market in Northern Africa is experiencing a shift in customer preferences towards more diverse investment options and risk management strategies.

Customer preferences: Investors in Northern Africa are increasingly looking for Energy Product Derivatives that offer flexibility and the ability to hedge against price volatility in the global energy market. They are seeking out derivatives that allow them to speculate on price movements while also managing their risk exposure effectively.

Trends in the market: One notable trend in the Energy Product Derivatives market in Northern Africa is the growing interest in renewable energy derivatives, reflecting a broader global movement towards sustainable energy sources. Investors are exploring derivatives linked to solar, wind, and other renewable energy products as they seek to align their portfolios with environmental goals.

Local special circumstances: Northern Africa's geographical location provides unique opportunities for energy production, particularly in the realm of solar energy. As the region continues to invest in renewable energy projects, there is a corresponding increase in the demand for derivatives linked to solar energy products. This trend is further supported by government initiatives aimed at promoting renewable energy development.

Underlying macroeconomic factors: The Energy Product Derivatives market in Northern Africa is also influenced by broader macroeconomic factors such as geopolitical stability, regulatory environment, and global energy prices. Investors are closely monitoring political developments in the region, as well as international energy market dynamics, to make informed decisions about their derivative investments. Additionally, regulatory changes and government policies play a significant role in shaping the direction of the 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.