Commodities - MENA

MENA

The nominal value in the Commodities market is projected to reach US$920.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.01% resulting in a projected total amount of US$1,121.00bn by 2029.
The average price per contract in the Commodities market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 456.40m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in MENA reflects a dynamic and evolving landscape driven by various factors influencing customer preferences, market trends, and local special circumstances. Customer preferences in the MENA region are shaped by a growing interest in diversifying investment portfolios, hedging against risks, and seeking alternative investment opportunities.

Investors in the region are increasingly looking towards commodities as a means to achieve these objectives. The demand for commodities is also influenced by factors such as geopolitical events, global economic conditions, and technological advancements. Trends in the market show a shift towards increased participation in commodity trading, particularly in energy and precious metals.

The MENA region's strategic location as a major oil and gas producer plays a significant role in shaping these trends. Additionally, the development of financial infrastructure and regulatory frameworks in countries within the region has further facilitated the growth of the commodities market. Local special circumstances in the MENA region, such as geopolitical tensions, economic diversification efforts, and regulatory reforms, play a crucial role in shaping the commodities market.

For instance, countries like Saudi Arabia and the UAE are focusing on diversifying their economies away from oil dependency, which has led to increased interest in commodities trading as a way to hedge against volatility in the energy markets. Underlying macroeconomic factors, including inflation rates, exchange rate fluctuations, and government policies, also impact the commodities market in MENA. Economic growth, trade dynamics, and fiscal reforms within the region contribute to the overall sentiment and investment behavior towards commodities.

Overall, the Commodities market in MENA is experiencing a transformative phase driven by changing customer preferences, evolving market trends, local special circumstances, and underlying macroeconomic factors.

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.