Precious Metal Derivatives - Saudi Arabia

Saudi Arabia

The nominal value in the Precious Metal Derivatives market is projected to reach US$3,127.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.68% resulting in a projected total amount of US$4,121.00m by 2029.
The average price per contract in the Precious Metal Derivatives 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$11,920.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 1,407.00k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Saudi Arabia is experiencing a notable surge in activity and interest.

Customer preferences: Investors in Saudi Arabia are showing a growing interest in diversifying their portfolios and hedging against market uncertainties through Precious Metal Derivatives. The allure of potentially high returns and a way to mitigate risks is attracting both institutional and retail investors.

Trends in the market: One of the prominent trends in the Saudi Arabian Precious Metal Derivatives market is the increasing adoption of innovative trading strategies and products. Investors are exploring new ways to leverage derivatives to maximize their gains and protect their investments. Additionally, there is a noticeable uptick in the trading volume of these instruments, indicating a heightened level of market participation.

Local special circumstances: Saudi Arabia's position as a key player in the global oil market and its efforts to diversify its economy are influencing the Precious Metal Derivatives market. As the country looks to reduce its dependence on oil revenues, investors are turning to alternative investment avenues like precious metals. This shift in focus is driving the demand for Precious Metal Derivatives in the country.

Underlying macroeconomic factors: The geopolitical stability and economic reforms in Saudi Arabia are creating a favorable environment for investment in Precious Metal Derivatives. As the country continues to implement structural changes to attract foreign investments and boost economic growth, the derivatives market is poised to benefit from increased liquidity and investor confidence. Additionally, the correlation between geopolitical events and precious metal prices is shaping investor sentiment and driving the demand for derivatives as a risk management tool.

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.