Commodities

The nominal value in the Commodities market is projected to reach US$21.45bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.95% resulting in a projected total amount of US$27.32bn by 2029.
The average price per contract in the Commodities market amounts to US$0.04 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 603.00k by 2029.

Definition:

The commodities market refers to derivatives of commodities. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of Gold, an investor could own a derivative of Gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The commodities market comprises derivatives of precious metals, industrial metals, energy products, agricultural products & the Emission Trade System. The segments of precious metals, industrial metals, energy products, and agricultural products are also providing price data of popular specific derivatives. The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year) as well as the average notional value per contract. Furthermore, the share of futures and options is provided for these KPIs to display even more insights into this market.

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Physical commodities
Other Derivative types
other Commodity Types

The Commodities market in Oman is experiencing a notable shift in recent years, reflecting the evolving dynamics of the global financial landscape. Customer preferences in Oman's Commodities market are increasingly leaning towards more diverse investment options, driven by a growing interest in alternative financial instruments.

Investors are seeking opportunities beyond traditional asset classes, looking for higher returns and portfolio diversification. This shift in preferences is in line with a broader global trend where investors are exploring different avenues to manage risks and enhance their investment portfolios. Trends in the market indicate a rising demand for commodities futures and options in Oman.

Investors are showing a keen interest in leveraging these financial derivatives to speculate on price movements and hedge against potential risks. The increasing participation in commodities trading is also attributed to the market's liquidity and transparency, offering investors a viable platform to engage in trading activities. Local special circumstances, such as Oman's strategic geographic location and its status as a key player in the Gulf region, contribute to the development of the Commodities market.

The country's economic diversification efforts and initiatives to strengthen its financial infrastructure have created a conducive environment for the growth of the market. Additionally, Oman's focus on enhancing regulatory frameworks and promoting investor confidence plays a crucial role in attracting domestic and international investors to the Commodities market. Underlying macroeconomic factors, including global economic conditions, geopolitical events, and technological advancements, are shaping the Commodities market in Oman.

The market is influenced by factors such as supply and demand dynamics, geopolitical tensions in the region, and technological innovations that impact trading practices. As Oman continues to position itself as a financial hub in the Gulf, these macroeconomic factors will play a significant role in driving the growth and development of the Commodities market in the country.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.