Middle-East and Africa Bunker Fuel Market Size (2024 - 2029)

The bunker fuel market in the Middle East and Africa is poised for growth, driven by the increasing demand from LNG-based vessels and the region's status as a global leader in crude oil production. Despite the challenges posed by environmental concerns and stringent maritime emission regulations, which may restrict the use of heavy bunker fuels, the market is expected to expand as production and trade activities rise. Countries like the United Arab Emirates and Saudi Arabia are set to enhance their crude oil output, creating significant opportunities in the shipping sector and reinforcing the region's market size.

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Market Size of Middle-East and Africa Bunker Fuel Industry

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Middle-East And Africa Bunker Fuel Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 12.00 %
Market Concentration Low

Major Players

Middle-East And Africa Bunker Fuel Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Middle East and Africa Bunker Fuel Market Analysis

The bunker fuel market in the Middle East and Africa is expected to grow at a CAGR of more than 12% during the forecast period.

The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns. Currently, the market has rebounded to pre-pandemic levels.

  • The increasing preference of LNG-based vessels and growing LNG trade is one of the significant factors driving the demand for bunker fuels in the Middle East and Africa during the forecast period. The region is also a global leader in crude oil production. With the expected increase in production, the demand for bunker fuel is likely to increase.
  • However, the environmental concerns and the strict regulations related to emissions from the maritime industry are anticipated to limit the usage of heavy bunker fuels, especially the high Sulfur fuel oil, during the forecast period.
  • Middle-East countries like the United Arab Emirates and Saudi Arabia are planning to increase crude oil production. With increased production, the shipping market is likely to witness significant opportunities in the forecast period.
  • The United Arab Emirates is one of the largest exporters of crude oil, which also has a significant share in the container shipping sector. With the expected growth in trade, the nation is likely to continue its dominance during the forecast period.

Middle East and Africa Bunker Fuel Industry Segmentation

Bunker fuel is the general term given to any fuel poured into a ship's bunkers to power its engines. Deep-sea cargo ships typically burn the heavy, residual oil left over after gasoline, diesel, and other light hydrocarbons are extracted from crude oil during the refining process. The Middle East and Africa bunker fuel market is segmented into fuel type, vessel type, and geography (the United Arab Emirates, Saudi Arabia, Nigeria, and the rest of the Middle East and Africa). By fuel type, the market is segmented into high-sulfur fuel oil (HSFO), very-low-sulfur fuel oil (VLSFO), marine gas oil (MGO), liquefied natural gas (LNG), and others. By vessel type, the market is segmented into containers, tankers, general cargo, bulk carriers, and others. The report also covers the market size and forecasts for the bunker fuel market across the major countries in the region. For each segment, market sizing and forecasts have been done based on revenue (USD billion).

Fuel Type
High Sulfur Fuel Oil (HSFO)
Very-Low Sulfur Fuel Oil (VLSFO)
Marine Gas Oil (MGO)
Liquefied Natural Gas (LNG)
Other Fuel Types
Vessel Type
Containers
Tankers
General Cargo
Bulk Carrier
Other Vessel Types
Geography
The United Arab Emirates
Saudi Arabia
Nigeria
Rest of the Middle-East and Africa
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Middle-East and Africa Bunker Fuel Market Size Summary

The Middle East and Africa bunker fuel market is poised for significant growth, driven by the increasing preference for LNG-based vessels and the region's status as a global leader in crude oil production. The rebound from the COVID-19 pandemic has restored the market to pre-pandemic levels, with expectations of continued expansion. However, environmental concerns and stringent emissions regulations are likely to limit the use of heavy bunker fuels, particularly high sulfur fuel oil, prompting a shift towards low-sulfur alternatives like very low sulfur fuel oil (VLSFO). The United Arab Emirates and Saudi Arabia are set to boost crude oil production, which is expected to create substantial opportunities in the shipping market, further enhancing the demand for bunker fuels.

The United Arab Emirates plays a crucial role in the region's bunker fuel market, with its ports, such as Jebel Ali and Fujairah, serving as key hubs for marine fuel supply. Despite challenges like the contamination incident in Khor Fakkan, which could impact client confidence, the UAE continues to invest in infrastructure to support the transition to low-sulfur fuels. The market is moderately fragmented, with major players including Gulf Agency Company Ltd., Abu Dhabi National Oil Company, Shell PLC, TotalEnergies SE, and Exxon Mobil Corporation. Additionally, developments in port infrastructure, such as the Moroccan ports and the new port and economic zone in Sudan, are expected to further influence the market dynamics in the region.

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Middle-East and Africa Bunker Fuel Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Fuel Type

      1. 2.1.1 High Sulfur Fuel Oil (HSFO)

      2. 2.1.2 Very-Low Sulfur Fuel Oil (VLSFO)

      3. 2.1.3 Marine Gas Oil (MGO)

      4. 2.1.4 Liquefied Natural Gas (LNG)

      5. 2.1.5 Other Fuel Types

    2. 2.2 Vessel Type

      1. 2.2.1 Containers

      2. 2.2.2 Tankers

      3. 2.2.3 General Cargo

      4. 2.2.4 Bulk Carrier

      5. 2.2.5 Other Vessel Types

    3. 2.3 Geography

      1. 2.3.1 The United Arab Emirates

      2. 2.3.2 Saudi Arabia

      3. 2.3.3 Nigeria

      4. 2.3.4 Rest of the Middle-East and Africa

Middle-East and Africa Bunker Fuel Market Size FAQs

The Middle-East and Africa Bunker Fuel Market is projected to register a CAGR of greater than 12% during the forecast period (2024-2029)

Gulf Agency Company Ltd , Abu Dhabi National Oil Company , Exxon Mobil Corporation , TotalEnergies SE and Shell PLC are the major companies operating in the Middle-East and Africa Bunker Fuel Market.

Middle East and Africa Bunker Fuel Market Report Snapshots

Middle East and Africa Bunker Fuel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)