Industry Metal Derivatives - Jordan

Jordan

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$671.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.44% resulting in a projected total amount of US$795.20m by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached China (US$2.83tn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 302.80k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Jordan is experiencing a notable shift in recent years.

Customer preferences: Investors in Jordan 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 potential for high returns and risk management capabilities.

Trends in the market: One of the key trends in the metal derivatives market in Jordan is the growing interest in gold derivatives. Gold has always been a popular investment choice in the region due to its perceived stability and value retention properties. As a result, there has been a surge in demand for gold derivatives as investors seek exposure to this precious metal without the need for physical ownership.

Local special circumstances: Jordan's strategic location in the Middle East makes it a hub for trade and investment, attracting a diverse range of market participants. The country's stable political environment and well-established financial infrastructure further contribute to the growth of the metal derivatives market. Additionally, the government's efforts to promote capital market development and attract foreign investment are creating a conducive environment for the expansion of derivative products.

Underlying macroeconomic factors: The economic stability and steady growth of Jordan's economy play a significant role in driving the metal derivatives market. As the country continues to attract foreign investment and diversify its economic base, investors are increasingly looking for sophisticated financial instruments to manage risk and optimize returns. Moreover, the global economic landscape and geopolitical developments also influence the demand for metal derivatives in Jordan, as investors seek safe-haven assets to navigate uncertain times.

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.