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The regions demand for base oils and lubricants is outpacing the global average - Samer Al Hokail, President and CEO of Luberef.
The Middle East is emerging as a key player in the global base oils and lubricants market, with rapid growth and significant production capacity, according to Samer Al Hokail, President and CEO of Luberef.
Speaking at the 19th ICIS Middle East Base Oils and Lubricants conference in Riyadh on Tuesday, Al Hokail underscored the regions growth trajectory in contrast to global trends.
He said: “There is nominal growth and demand globally, but the Middle East and Africa are different. It is the fastest-growing region, seeing three times the growth of the rest of the world. The Middle East’s capacity is currently nearly double its demand, leaving it well-positioned to be a major player in base oils and lubricants.”
Highlighting Saudi Arabia’s strategic position within this growth story, Al Hokail said the Kingdom is located at the heart of the world’s fastest-growing region, giving it the ability to shape the future of the industry and become a leading hub for base oils and lubricants.
He explained that Saudi’s base oil production ecosystem, producing 1.4 million metric tonnes (MMT) of premium base oils with 800,000 tonnes of blending capacity, plays a critical role in supporting regional and global markets, and especially emerging markets, such as Africa.
During his presentation, the Luberef executive noted that despite the challenges presented by geopolitical factors and economic fluctuations, the global demand for lubricants is expected to remain stable.
“There are a number of geopolitical issues currently, as well as the Fed cutting interest rates, so it is becoming a little more demanding in terms of supply and outlook. But we have bounced back since COVID, and the global outlook with regards to demand for lubricants is expected to be stable with slight growth until 2030,” he said. |
