Industry Metal Derivatives - Kuwait

Kuwait

The nominal value in the Industry Metal Derivatives market is projected to reach US$18.28bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.97% resulting in a projected total amount of US$21.16bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.06 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 305.90k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Metal Derivatives market in Kuwait is experiencing a notable increase in trading activities and market participation. Customer preferences in Kuwait lean towards speculative trading in Metal Derivatives, driven by a desire to capitalize on price fluctuations in the global metal markets.

Investors in Kuwait are increasingly looking to diversify their portfolios and hedge against inflation through exposure to Metal Derivatives. Trends in the Kuwaiti Metal Derivatives market indicate a growing interest in exotic derivatives, such as metal options and structured products. Market participants are exploring innovative strategies to optimize returns and manage risk in a volatile market environment.

Additionally, there is a noticeable shift towards electronic trading platforms, enhancing market efficiency and accessibility for investors in Kuwait. Local special circumstances, such as the country's strategic location as a major trading hub in the Middle East, play a significant role in shaping the Metal Derivatives market in Kuwait. The well-established infrastructure and regulatory framework in Kuwait attract international investors looking to tap into the region's metal trading opportunities.

Moreover, the government's initiatives to promote financial market development further support the growth of the Metal Derivatives market in Kuwait. Underlying macroeconomic factors, including global metal prices, geopolitical developments, and currency fluctuations, influence the dynamics of the Metal Derivatives market in Kuwait. As metal prices continue to be influenced by supply-demand fundamentals and macroeconomic indicators, market participants in Kuwait closely monitor these factors to make informed trading decisions.

Additionally, regulatory reforms and market liberalization efforts contribute to the overall resilience and growth potential of the Metal Derivatives market in Kuwait.

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.