Industry Metal Derivatives - Uganda

Uganda

Highlights

The nominal value in the Industry Metal Derivatives market is projected to reach US$18.38bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.73% resulting in a projected total amount of US$22.07bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.07 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 282.00k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Industry Metal Derivatives market in Uganda is experiencing a notable shift in recent times.

Customer preferences: Customers in Uganda are increasingly turning to metal derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these financial instruments lies in their ability to provide exposure to the price movements of various metals without the need to physically own the assets.

Trends in the market: One of the key trends in the Ugandan metal derivatives market is the growing interest from institutional investors. As these investors seek ways to manage risk and enhance returns, they are exploring the opportunities presented by metal derivatives. This trend is not unique to Uganda but reflects a broader global movement towards alternative investments.

Local special circumstances: Uganda's metal derivatives market is also influenced by local special circumstances, such as the country's evolving regulatory environment. As authorities work to enhance the oversight and transparency of financial markets, investors in metal derivatives are likely to benefit from a more robust and secure trading environment. Additionally, the growing presence of financial institutions offering derivative products is expanding access to these instruments across the country.

Underlying macroeconomic factors: The development of the metal derivatives market in Uganda is further supported by underlying macroeconomic factors. Economic growth, increasing disposable income, and a burgeoning middle class are creating a conducive environment for investment activities, including participation in derivative markets. Moreover, as Uganda continues to integrate into the global economy, the demand for sophisticated financial products like metal derivatives is expected to rise.

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.