The Commodities market in Kuwait has been experiencing a notable shift in recent years, driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.
Customer preferences: Customers in Kuwait have shown a growing interest in diversifying their investment portfolios, seeking opportunities beyond traditional asset classes. This shift in preference has led to an increased demand for alternative investments, such as commodities, which offer unique risk-return profiles and can act as a hedge against inflation.
Trends in the market: In Kuwait, the Commodities market has witnessed a surge in trading activity, with more investors participating in futures and options contracts. This trend can be attributed to the growing sophistication of market participants, who are increasingly utilizing derivatives to manage risk and speculate on price movements. Additionally, the introduction of innovative financial products and trading platforms has made it easier for investors to access the Commodities market.
Local special circumstances: Kuwait's strategic location in the Middle East, coupled with its status as a major oil producer, has a significant impact on the Commodities market. The country's strong ties to the energy sector influence investor sentiment and trading patterns in commodities such as crude oil. Moreover, Kuwait's stable political environment and robust regulatory framework provide a favorable backdrop for commodity trading activities.
Underlying macroeconomic factors: The performance of the Kuwaiti economy, particularly in terms of GDP growth, inflation rates, and currency stability, plays a crucial role in shaping the Commodities market. Economic indicators such as global oil prices, geopolitical developments, and regional supply-demand dynamics have a direct impact on commodity prices and market sentiment in Kuwait. As the economy continues to evolve, investors in Kuwait closely monitor these macroeconomic factors to make informed decisions in the Commodities 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.
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