Dublin, Jan. 15, 2025 (GLOBE NEWSWIRE) — The “Middle East and Africa Bunker Fuel Market, By Country, Competition, Forecast and Opportunities, 2020-2030F” report has been added to ResearchAndMarkets.com’s offering.
The Middle East and Africa Bunker Fuel Market was valued at USD 10.67 Billion in 2024, and is expected to reach USD 18.21 Billion by 2030, rising at a CAGR of 9.15%.
The Middle East and Africa Bunker Fuel Market refers to the supply and consumption of fuel used by ships for maritime transportation in the region. Bunker fuel is a critical component in the global shipping industry, which powers commercial vessels, tankers, bulk carriers, and other types of ships. The demand for bunker fuel in the Middle East and Africa is driven by the region’s strategic location as a key hub for international shipping routes. Ports in the Middle East, such as those in the United Arab Emirates, Saudi Arabia, and Oman, serve as important refueling stations for vessels transiting between Europe, Asia, and Africa.
Furthermore, the region’s growing oil production capacity and expanding maritime infrastructure have bolstered its position as a significant player in the global bunker fuel supply chain. As shipping traffic increases, particularly with the rise of trade routes and the expansion of shipping fleets, the demand for bunker fuel in the Middle East and Africa is expected to continue its upward trajectory. Additionally, advancements in fuel efficiency, regulations regarding sulfur content, and the growing adoption of alternative fuels such as LNG (Liquefied Natural Gas) are expected to shape the future growth of the market.
Countries in the region are increasingly investing in modernizing port facilities, fuel storage, and distribution networks, which will facilitate smoother and more efficient fuel supply to ships. With global trade volumes expected to rise, especially with the expansion of emerging markets in Africa and the Middle East, the Bunker Fuel Market in the region will experience sustained growth. This trend is further supported by the rise in maritime shipping activities, including the transportation of goods and raw materials, making the Middle East and Africa a key area for fuel consumption in the maritime industry.
European energy companies Shell, BP, and TotalEnergies, along with Japan’s Mitsui, each acquired a 10% stake in Abu Dhabi’s Ruwais LNG project, with Abu Dhabi’s state-owned ADNOC retaining the remaining 60%. This project aims to boost the UAE’s LNG production capacity to 15 million tons annually by 2028
Key Market Trends
Adoption of Low-Sulfur Bunker Fuels
One of the most prominent trends shaping the Middle East and Africa Bunker Fuel Market is the growing adoption of low-sulfur bunker fuels, driven by global environmental regulations and a heightened focus on sustainability. The International Maritime Organization’s global sulfur cap, which came into effect in January 2020, mandates that the sulfur content in marine fuels be reduced from 3.5 percent to 0.5 percent. This regulatory shift has prompted significant changes in the supply and demand dynamics of bunker fuels across the region, including the Middle East and Africa. The Middle East and Africa saw a 15-20% increase in demand for low-sulfur fuels, particularly in ports like Dubai, Abu Dhabi, and Suez Canal, as vessels needed to comply with the new sulfur limits.
Shipping companies operating in this region are increasingly adopting low-sulfur fuels to comply with the new regulations and avoid hefty fines. Consequently, bunker fuel suppliers are responding by enhancing their product offerings to meet the demand for cleaner fuels. Suppliers are investing in refining technologies to produce low-sulfur fuel oils, and some are exploring alternative fuels, such as Liquefied Natural Gas (LNG), biofuels, and synthetic fuels, which also meet stringent environmental standards.
The transition to low-sulfur fuels has not only become a regulatory requirement but also a market differentiator for companies that prioritize environmental responsibility and sustainability. Moreover, many ports in the Middle East and Africa are upgrading their facilities to handle the increased demand for low-sulfur fuels, ensuring that their bunkering services align with global industry standards. This shift toward cleaner fuels is expected to continue as regulations tighten and pressure increases for the shipping industry to reduce its carbon footprint.
In addition to regulatory compliance, there is also an increasing demand from consumers and stakeholders for environmentally friendly shipping practices. This has prompted shipping companies to not only meet regulatory requirements but to proactively embrace cleaner alternatives in their operations, further fueling the growth of low-sulfur bunker fuels in the region. Africa’s bunker fuel consumption was estimated at approximately 5-7 million metric tons in 2023, with a projected annual growth rate of 3-4% driven by increasing maritime trade and regional port development.
Growing Interest in Alternative Marine Fuels
As part of the broader shift toward sustainability and reducing carbon emissions, the Middle East and Africa Bunker Fuel Market is witnessing a growing interest in alternative marine fuels. These alternative fuels include biofuels, Liquefied Natural Gas, hydrogen, and methanol, which are seen as viable substitutes for traditional marine fuels. The demand for these fuels is primarily driven by the maritime industry’s desire to meet increasingly stringent environmental regulations while also reducing greenhouse gas emissions.
Biofuels, in particular, have gained significant traction due to their potential to reduce the carbon intensity of shipping operations. Biofuels can be made from renewable sources such as plant oils, algae, or waste products, making them an attractive option for companies seeking to reduce their environmental impact. While biofuels are not yet widely used in the Middle East and Africa, pilot projects and partnerships are emerging across the region. Several bunkering suppliers are exploring biofuel blending with traditional bunker fuels as a transitional step towards full-scale adoption. Additionally, Liquefied Natural Gas is increasingly seen as an attractive alternative due to its lower carbon emissions compared to conventional marine fuels.
In addition to reducing carbon emissions, alternative fuels also offer shipping companies the potential to future-proof their operations. Many major international shipping companies are already investing in vessels that are capable of running on these alternative fuels. The increasing focus on decarbonizing the shipping industry is expected to drive significant growth in the demand for alternative marine fuels across the Middle East and Africa, with suppliers and shipping companies working together to establish the infrastructure necessary to support this transition. This trend is likely to continue as both environmental concerns and regulatory pressures grow.
Digitalization and Automation in Bunkering Operations
Digitalization and automation are emerging as key trends in the Middle East and Africa Bunker Fuel Market, as companies seek to improve operational efficiency, reduce costs, and enhance customer experience. The adoption of digital technologies, including data analytics, real-time monitoring, and automated fuel management systems, is transforming the way bunker fuel is delivered and consumed in the region.
Through digital platforms, bunker fuel suppliers can now track fuel consumption, monitor delivery schedules, and predict future demand, enabling them to optimize inventory and improve fuel delivery efficiency. Real-time data also allows for better decision-making, ensuring that fuel is delivered at the right time and in the right quantities, reducing waste and minimizing operational disruptions. Furthermore, digitalization allows shipping companies to have greater visibility into their fuel consumption patterns, helping them identify potential inefficiencies and implement more sustainable practices.
The use of automated systems in the bunkering process also enhances safety and reduces human error, which is especially important in high-risk environments such as refueling operations. Automation in fuel delivery, invoicing, and payment processes is making the entire bunkering process more seamless, streamlined, and transparent. Additionally, blockchain technology is being explored as a way to improve transparency in fuel transactions, ensuring that all stakeholders involved in the bunkering process have access to secure, verifiable data.
As digitalization continues to evolve, the Middle East and Africa Bunker Fuel Market is likely to see increased investment in innovative technologies, further improving the efficiency, safety, and sustainability of bunker fuel operations. This trend is expected to benefit both bunker fuel suppliers and customers, as digital and automated solutions contribute to cost reductions, better fuel management, and more environmentally responsible practices.
Country Insights
In 2024, Saudi Arabia dominated the Middle East and Africa Bunker Fuel Market and is expected to maintain its leading position throughout the forecast period. Saudi Arabia’s dominance is primarily driven by its strategic geographic location along major international shipping routes, especially the Red Sea and the Arabian Gulf, which positions the country as a key hub for maritime fuel supply in the region.
The country’s well-developed infrastructure, including major ports like Jeddah and Dammam, facilitates the efficient distribution of bunker fuel to vessels operating in these critical trade routes. Additionally, Saudi Arabia’s significant oil reserves and established refineries contribute to its competitive advantage in providing reliable and cost-effective bunker fuel. The growing shipping industry in Saudi Arabia, coupled with the government’s investments in port expansion and maritime infrastructure, further strengthens its position in the bunker fuel market.
While the United Arab Emirates and Qatar are also key players, particularly in fueling international maritime traffic due to their advanced ports and oil exports, Saudi Arabia’s larger fleet and proximity to major shipping lanes give it a continued edge. Egypt is another strong contender, particularly with the Suez Canal playing a pivotal role in global shipping, but its bunker fuel demand remains secondary to that of Saudi Arabia. Other regions such as South Africa, Nigeria, and Turkey are important contributors, but they do not match the scale and infrastructure dominance of Saudi Arabia. Given these factors, Saudi Arabia is poised to retain its dominance in the Middle East and Africa Bunker Fuel Market as the region’s maritime activity and fuel demand continue to grow in the coming years.
Key Market Players
- Exxon Mobil
- BP
- Shell International
- Chevron
- TotalEnergies
- Saudi Arabian Oil Company (Saudi Aramco)
- ENOC Company
- QatarEnergy
- Kuwait Petroleum Corporation
- National Iranian Oil Company
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 133 |
| Forecast Period | 2024 – 2030 |
| Estimated Market Value (USD) in 2024 | $10.67 Billion |
| Forecasted Market Value (USD) by 2030 | $18.21 Billion |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | Africa, Middle East |
Report Scope:
In this report, the Middle East and Africa Bunker Fuel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
Middle East and Africa Bunker Fuel Market, By Fuel Type:
- IFO (Intermediate Fuel Oil)
- MDO (Marine Diesel Oil)
- MGO (Marine Gas Oil)
- LNG (Liquefied Natural Gas)
- Others
Middle East and Africa Bunker Fuel Market, By Vessel Type:
- Large Ships
- Medium Ships
- Small Ships
Middle East and Africa Bunker Fuel Market, By Application:
- Commercial Shipping
- Tankers
- Bulk Carriers
- Container Ships
- Passenger Ships
- Others
Middle East and Africa Bunker Fuel Market, By End-User:
- Ship Owners
- Fuel Suppliers
- Government and Defense
For more information about this report visit https://www.researchandmarkets.com/r/43wjbl
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- Middle Eastern and African Bunker Fuel Market
