Commodities

The nominal value in the Commodities market is projected to reach US$40.88bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.86% resulting in a projected total amount of US$51.82bn 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 United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 356.60m 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

In recent years, the Commodities market in Saudi Arabia has been experiencing a notable growth and evolution.

Customer preferences: Investors in Saudi Arabia have shown a growing interest in diversifying their investment portfolios, seeking higher returns. This has led to an increased demand for commodities as an alternative investment option compared to traditional assets.

Trends in the market: One of the key trends in the Saudi Arabian Commodities market is the rising popularity of trading in commodity derivatives. Investors are increasingly turning to derivatives due to their potential for higher leverage and the ability to speculate on price movements without owning the underlying asset. This trend is in line with the global shift towards derivative trading in commodities markets.

Local special circumstances: Saudi Arabia's strategic position as a major oil-producing nation plays a significant role in shaping its commodities market. The country's economy is closely tied to the fluctuations in global oil prices, which can impact investor sentiment and trading activity in commodity derivatives. Additionally, the government's initiatives to diversify the economy away from oil dependence have also influenced investment decisions in the commodities market.

Underlying macroeconomic factors: The overall economic stability and growth prospects of Saudi Arabia play a crucial role in driving the commodities market. Factors such as government policies, geopolitical developments, and global economic conditions can all impact the performance of commodity derivatives in the country. Additionally, investor confidence and risk appetite are influenced by macroeconomic indicators such as inflation, interest rates, and currency exchange rates.

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.