Commodities - GCC

The nominal value in the Commodities market is projected to reach US$311.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.90% resulting in a projected total amount of US$395.10bn by 2029.
The average price per contract in the Commodities 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$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 380.70m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in the GCC region is experiencing a significant shift in recent years. Customer preferences in the GCC Commodities market are leaning towards more diverse investment options, with a growing interest in alternative investment strategies.

Investors are increasingly looking for ways to diversify their portfolios and hedge against market volatility, leading to a rise in demand for commodities as a financial instrument. Trends in the GCC Commodities market indicate a move towards more sophisticated trading strategies, with a focus on risk management and portfolio optimization. As investors become more educated about the potential benefits of commodities trading, they are exploring different ways to incorporate these assets into their investment strategies.

Local special circumstances in the GCC, such as the region's heavy reliance on oil exports, play a significant role in shaping the Commodities market. Fluctuations in oil prices can have a direct impact on the performance of commodities as an asset class, making it crucial for investors in the region to closely monitor and manage their exposure to these markets. Underlying macroeconomic factors, including geopolitical tensions and global economic conditions, also influence the GCC Commodities market.

Uncertainties in the geopolitical landscape can lead to increased volatility in commodity prices, creating both challenges and opportunities for investors in the region. Additionally, macroeconomic trends such as inflation rates and currency fluctuations can impact the performance of commodities as an investment option in the GCC.

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.