Industry Metal Derivatives - Egypt

Egypt

The nominal value in the Industry Metal Derivatives market is projected to reach US$14.46bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.37% resulting in a projected total amount of US$17.07bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.04 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 344.30k by 2029.

Market

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Currency

Analyst Opinion

Amidst Egypt's growing economy, the Industry Metal Derivatives market in the country is experiencing significant developments.

Customer preferences: Investors in Egypt are increasingly turning to metal derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these financial instruments lies in their ability to provide exposure to metal prices without the need for physical ownership.

Trends in the market: One notable trend in the Industry Metal Derivatives market in Egypt is the increasing demand for gold derivatives. Gold has always been a popular investment choice in the country due to its historical significance and perceived stability. As a result, there is a growing interest in gold futures and options among Egyptian investors looking to capitalize on price movements in the precious metal.

Local special circumstances: Egypt's strategic location as a gateway between Africa, the Middle East, and Europe positions it as a key player in the global metal derivatives market. The country's well-established financial infrastructure and regulatory framework make it an attractive destination for investors looking to access metal derivatives.

Underlying macroeconomic factors: The growth of the Industry Metal Derivatives market in Egypt is also influenced by macroeconomic factors such as inflation, currency exchange rates, and government policies. As the economy continues to expand and diversify, investors are seeking alternative investment opportunities like metal derivatives to protect their wealth and generate returns in a changing market environment.

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.