Industry Metal Derivatives - Bahrain

Bahrain

The nominal value in the Industry Metal Derivatives market is projected to reach US$5.47bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.54% resulting in a projected total amount of US$6.51bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 301.20k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Bahrain is experiencing a notable surge in activity and interest. Customer preferences in Bahrain for metal derivatives are influenced by a combination of factors such as global economic conditions, geopolitical events, and local market sentiment.

Investors in Bahrain show a growing appetite for metal derivatives as a way to diversify their portfolios and hedge against market volatility. Trends in the market indicate a steady increase in the trading volume of metal derivatives, with a particular focus on gold and silver contracts. The demand for these derivatives is being driven by both institutional investors and retail traders looking to capitalize on price fluctuations in the precious metals market.

Local special circumstances, such as Bahrain's strategic location as a financial hub in the Middle East, play a significant role in the development of the metal derivatives market. The country's well-established regulatory framework and supportive business environment attract investors looking to access the global metal derivatives market. Underlying macroeconomic factors, including Bahrain's stable economic growth, low inflation rates, and strong investor confidence, further contribute to the positive outlook for the metal derivatives market in the country.

As Bahrain continues to position itself as a key player in the financial services industry, the demand for metal derivatives is expected to remain robust.

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.