Energy Product Derivatives - United Arab Emirates

United Arab Emirates

The nominal value in the Energy Product Derivatives market is projected to reach US$0.05bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.00% resulting in a projected total amount of US$0.05bn 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 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 19.27k by 2029.

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Analyst Opinion

The Energy Product Derivatives market in United Arab Emirates sees a growing demand for risk management tools and investment opportunities.

Customer preferences: Customers in the United Arab Emirates are increasingly turning to Energy Product Derivatives as a way to hedge against price volatility and speculate on future price movements in the energy sector. The market offers a wide range of derivative products that cater to the diverse needs of investors and businesses operating in the energy industry.

Trends in the market: One of the key trends in the Energy Product Derivatives market in the United Arab Emirates is the growing interest in trading crude oil derivatives. As a major oil-producing country, the UAE has a deep-rooted connection to the global oil market, making it a hub for trading oil derivatives. Additionally, there is a rising demand for natural gas derivatives as the country continues to invest in diversifying its energy mix.

Local special circumstances: The United Arab Emirates' strategic location as a major player in the global energy market contributes to the development of its Energy Product Derivatives market. The country's strong regulatory framework and well-established financial infrastructure attract both domestic and international investors to participate in derivative trading. Moreover, the presence of key industry players and trading platforms further enhances the liquidity and efficiency of the market.

Underlying macroeconomic factors: The growth of the Energy Product Derivatives market in the United Arab Emirates is also influenced by broader macroeconomic factors such as global energy prices, geopolitical developments, and government policies. The country's efforts to diversify its economy away from oil dependency drive the demand for energy derivatives as investors seek exposure to alternative energy sources and technologies. Additionally, economic reforms and initiatives to attract foreign investment play a significant role in shaping the dynamics of the 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.