Commodities - Lebanon

Lebanon

The nominal value in Lebanon's Commodities market is forecasted to reach US$32.89bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 2.90%, resulting in a projected total amount of US$36.87bn by 2028.
The average price per contract in Lebanon's Commodities market stands at US$0.07 in 2024.
When compared globally, the highest nominal value is achieved the in the United States (US$45,690.00bn in 2024).
In the Commodities market of Lebanon, the number of contracts is expected to reach 451.00k by 2028.
Amid economic uncertainty, Lebanon sees a rise in trading activity of commodities futures contracts on the commodities market.

Market

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Analyst Opinion

Lebanon's Commodities market is witnessing a shift in customer preferences towards more diverse investment options. Customers are increasingly looking for alternative investment opportunities to hedge against inflation and economic uncertainties, leading to a growing interest in Commodities trading.

Customer preferences: Investors in Lebanon are showing a growing interest in Commodities as a way to diversify their portfolios and seek higher returns. With the economic challenges faced by the country, investors are turning to Commodities as a hedge against inflation and currency devaluation. This shift in customer preferences is driving the growth of the Commodities market in Lebanon.

Trends in the market: One of the key trends in the Commodities market in Lebanon is the increasing popularity of trading platforms that offer easy access to a wide range of Commodities derivatives. Investors are attracted to the convenience and flexibility of online trading, allowing them to speculate on price movements without owning the underlying asset. This trend is reshaping the way investors in Lebanon participate in the Commodities market.

Local special circumstances: The unique economic situation in Lebanon, characterized by high inflation and currency devaluation, is creating a favorable environment for Commodities trading. Investors see Commodities as a way to protect their wealth and potentially profit from market fluctuations. The local special circumstances are driving the demand for Commodities as an investment instrument in Lebanon.

Underlying macroeconomic factors: The macroeconomic factors influencing the Commodities market in Lebanon include the country's economic instability, high inflation rates, and currency depreciation. These factors are pushing investors towards alternative assets like Commodities to preserve the value of their investments. The uncertainty in the local economy is fueling the demand for Commodities trading as a means of capitalizing on market volatility.

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.