Industry Metal Derivatives - Saudi Arabia

Saudi Arabia

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$12.81bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.45% resulting in a projected total amount of US$15.18bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.03 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 440.20k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Metal Derivatives market in Saudi Arabia is experiencing significant growth and evolution.

Customer preferences: Investors in Saudi Arabia 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 offer exposure to the metal market without the need for physical ownership.

Trends in the market: One of the key trends in the Saudi Arabian Metal Derivatives market is the growing interest in gold derivatives. Gold has always been a popular investment choice in the region due to its historical significance and perceived stability. As a result, there is a rising demand for gold derivatives as investors seek to capitalize on price fluctuations in the precious metal market.

Local special circumstances: Saudi Arabia's strong economy and stable political environment make it an attractive destination for investors looking to enter the Metal Derivatives market. The country's strategic location and well-established financial infrastructure also contribute to its appeal as a hub for trading metal derivatives.

Underlying macroeconomic factors: The growth of the Metal Derivatives market in Saudi Arabia can be attributed to several macroeconomic factors, including the government's efforts to diversify the economy away from oil dependence. As the country seeks to develop other sectors, such as finance and technology, investors are increasingly looking towards alternative investment opportunities like metal derivatives. Additionally, the overall stability and growth potential of the Saudi Arabian economy play a significant role in driving interest in the Metal Derivatives market.

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.