Agricultural Product Derivatives - United Arab Emirates

United Arab Emirates

The nominal value in the Agricultural Product Derivatives market is projected to reach €33.48bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.48% resulting in a projected total amount of €43.71bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€11,430.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 21.08m by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in United Arab Emirates is experiencing a notable surge in interest and activity.

Customer preferences: Investors in the United Arab Emirates are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. With a growing appetite for alternative investments, these financial instruments provide an opportunity for investors to speculate on the future price movements of agricultural commodities without needing to physically own them.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in the United Arab Emirates is the adoption of advanced trading technologies and platforms. This trend is driven by the desire for more efficient and convenient ways to trade these derivatives, enabling investors to access real-time market data and execute trades swiftly. Additionally, there is a growing interest in sustainable investing, leading to the development of derivatives linked to environmentally friendly agricultural practices.

Local special circumstances: The United Arab Emirates' strategic geographical location and strong economic position in the region play a significant role in shaping the Agricultural Product Derivatives market. As a major hub for finance and trade, the country serves as a gateway for investors looking to tap into opportunities in both local and international agricultural markets. Moreover, the government's initiatives to diversify the economy away from oil dependency have created a favorable environment for the growth of derivative markets, including those related to agricultural products.

Underlying macroeconomic factors: The stability of the United Arab Emirates' economy, coupled with its efforts to attract foreign investment, has contributed to the growth of the Agricultural Product Derivatives market. Additionally, the country's focus on innovation and technology-driven solutions has fostered a conducive environment for the development of sophisticated financial instruments. As the market continues to evolve, regulatory frameworks and investor education programs will play a crucial role in shaping the future landscape of Agricultural Product Derivatives in the United Arab Emirates.

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.