Industry Metal Derivatives - United Arab Emirates

United Arab Emirates

The nominal value in the Industry Metal Derivatives market is projected to reach €50.43bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.86% resulting in a projected total amount of €60.93bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to €0.15 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (€2,629.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 358.40k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in United Arab Emirates has been experiencing significant growth and development in recent years. Customer preferences in the UAE for metal derivatives are largely influenced by the global demand for commodities like gold, silver, and copper.

Investors in the region are attracted to the stability and potential returns offered by these derivatives, especially during times of economic uncertainty. Trends in the market show a growing interest in Sharia-compliant metal derivatives, catering to the Islamic finance principles followed in the UAE. This trend has led to the introduction of innovative financial products that adhere to Islamic law, attracting a wider range of investors in the country.

Local special circumstances in the UAE, such as the country's position as a global financial hub and its strategic location between East and West, have contributed to the growth of the metal derivatives market. The presence of sophisticated infrastructure and a business-friendly environment has attracted international investors looking to diversify their portfolios with metal derivatives. Underlying macroeconomic factors, including the country's stable political environment, strong regulatory framework, and increasing disposable income levels, have further supported the growth of the metal derivatives market in the UAE.

These factors have instilled confidence in investors and encouraged participation in the market, driving its expansion and development.

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.