Precious Metal Derivatives - Egypt

Egypt

The nominal value in the Precious Metal Derivatives market is projected to reach US$4,633.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.25% resulting in a projected total amount of US$4,691.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.09 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$11,920.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 62.24k by 2029.

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Currency

Analyst Opinion

The Precious Metal Derivatives market in Egypt is experiencing a notable increase in trading activity and product offerings.

Customer preferences: Investors in Egypt are showing a growing interest in diversifying their portfolios and hedging against market volatility through Precious Metal Derivatives. This trend is in line with global demand for alternative investments that offer stability and potential returns.

Trends in the market: One key trend in the Precious Metal Derivatives market in Egypt is the introduction of new products tailored to meet the specific needs of local investors. As the market matures, there is a noticeable shift towards more sophisticated derivative instruments and trading strategies. Additionally, the increasing participation of institutional investors is contributing to higher liquidity and a more dynamic market environment.

Local special circumstances: Egypt's strategic location between Africa, the Middle East, and Europe positions it as a hub for trading activities. This geographical advantage, coupled with a strong regulatory framework and a growing economy, is attracting more foreign investors to the Precious Metal Derivatives market in the country. Moreover, the government's efforts to promote financial market development are creating a conducive environment for the expansion of derivative products.

Underlying macroeconomic factors: The stability of the Egyptian economy and the government's commitment to economic reforms are instilling confidence in both local and foreign investors. As the country continues to attract foreign direct investment and improve its business environment, the Precious Metal Derivatives market is expected to grow further. Additionally, the increasing integration of Egypt into the global financial system is opening up new opportunities for market participants to access international markets and products.

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.