Energy Product Derivatives - Saudi Arabia

Saudi Arabia

Highlights

The nominal value in the Energy Product Derivatives market is projected to reach US$18.94bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.51% resulting in a projected total amount of US$24.77bn by 2029.
The average price per contract in the Energy Product Derivatives market amounts to US$0.00 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 354.10m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Energy Product Derivatives market in Saudi Arabia is experiencing significant growth and development. Customer preferences in Saudi Arabia are shifting towards more diverse investment opportunities, including Energy Product Derivatives, as investors seek to diversify their portfolios and hedge against market volatility.

Trends in the market show a growing interest in Energy Product Derivatives as a financial instrument for speculating on price movements of energy products without owning the physical commodities. This trend is driven by the increasing sophistication of investors in Saudi Arabia and their growing awareness of the benefits of derivatives trading. Local special circumstances in Saudi Arabia, such as the country's status as a major oil producer and exporter, play a significant role in shaping the Energy Product Derivatives market.

The close ties between the energy sector and the overall economy create a unique environment for derivatives trading in the country. Underlying macroeconomic factors, including oil price fluctuations, government policies, and global economic conditions, also influence the Energy Product Derivatives market in Saudi Arabia. These factors contribute to the overall growth and volatility of the market, providing opportunities for investors to capitalize on price movements in the energy sector.

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.