UAE Oil Refining Market Overview, 2030

The United Arab Emirates has developed one of the most sophisticated and export-driven oil refining sectors in the Middle East, with Abu Dhabi National Oil Company (ADNOC) controlling nearly all refining operations. The refining system is anchored by the massive Ruwais Industrial Complex, located in Abu Dhabi’s western region, which is the largest refinery in the Middle East with a capacity of over 900,000 barrels per day across its East and West sections. Another key facility is the Jebel Ali refinery in Dubai, operated by Emirates National Oil Company (ENOC), with a capacity of 210,000 barrels per day. The country’s refining infrastructure is highly integrated with downstream petrochemical assets, including Borouge and other joint ventures, enabling value-chain optimization and export competitiveness. ADNOC’s international partnerships with companies like Cepsa (Spain), OMV (Austria), and Eni (Italy) have enhanced technological transfer, capital investment, and access to global markets. The UAE’s geographic position provides strategic shipping access to Europe, Asia, and Africa via the Strait of Hormuz and Fujairah Port, one of the world’s busiest bunkering hubs. This advantage supports a large volume of refined fuel exports, especially diesel, jet fuel, and naphtha. As part of the UAE Energy Strategy 2050 and ADNOC’s 2030 Integrated Strategy, significant attentions is directed at upgrading refining units for energy efficiency, emissions control, and clean fuels processing. The refineries are also beginning to pilot hydrogen co-processing, carbon capture, and bio-feedstock trials to align with net-zero ambitions. Regulatory oversight is centralized under the Ministry of Energy and Infrastructure, but operations remain streamlined through state-owned structures.

According to the research report ""UAE Oil Refining Market Overview, 2030,"" published by Bonafide Research, the UAE Oil Refining market is anticipated to grow at more than 6.95% CAGR from 2025 to 2030. ADNOC’s multi-billion-dollar investments under its Downstream 2030 Strategy include the Ruwais Refinery Expansion also known as the Crude Flexibility Project, allowing the facility to process over 50 different crude types and expand light products output such as gasoline and naphtha. Jet fuel and marine fuel including low-sulfur bunker fuel continue to see increasing demand from the UAE’s major airports and ports in Abu Dhabi, Dubai, and Fujairah. The country’s refining margins benefit from economies of scale, integration with petrochemicals, and access to cost-advantaged crude feedstock. Regulatory developments such as the UAE Clean Energy Strategy and hydrogen roadmaps are influencing pilot projects in renewable diesel and co-processing at select units within Ruwais. However, constraints include environmental compliance costs, high water and energy intensity of refining operations, and volatility in crack spreads tied to global fuel markets. Initiatives like the TA’ZIZ Industrial Chemicals Zone are further embedding refinery output into domestic manufacturing, increasing the value capture within the UAE. In December 2021, Technip Energies and TARGET Engineering were awarded an engineering, procurement, and construction contract by Abu Dhabi Polymers Co. Ltd, a joint venture between ADNOC and Borealis. Under this contract, the companies will construct a new Ethane Cracker Unit, which will be integrated into the Borouge 4 petrochemical complex in Ruwais, United Arab Emirates. The plant is expected to have a production capacity of more than 1,500 KTA.

In the United Arab Emirates (UAE), gasoline and diesel remain fundamental to the country’s fuel consumption, serving both private and commercial vehicle fleets that dominate road transport across urban centers like Abu Dhabi and Dubai. Diesel, in particular, plays a crucial role in logistics, freight transport, and industrial applications, benefiting from the UAE’s extensive infrastructure and trade activities. Gasoline demand is steady, driven by high private vehicle ownership and continued urban expansion. Jet fuel is a significant product, with major aviation hubs such as Abu Dhabi International Airport and Dubai International Airport supporting both domestic travel and substantial export demand through cargo operations. The UAE’s position as a global air traffic hub amplifies jet fuel consumption and export opportunities. Fuel oil maintains relevance primarily in bunkering for maritime vessels operating through key ports like Fujairah, which serves as one of the world’s busiest bunkering hubs. The bunkering sector also uses fuel oil in industrial applications across shipping and port logistics. Asphalt demand is buoyed by ongoing real estate developments and large-scale road construction projects, particularly within rapidly growing emirates aiming to enhance connectivity and urban infrastructure. Lubricants have steady demand, primarily servicing the logistics sector and commercial shipping fleets, reflecting the UAE’s strategic role as a global trade and transport center. LPG consumption is limited domestically due to the widespread availability of piped natural gas but remains important for export markets. The UAE’s fuel consumption profile is thus balanced between traditional transport fuels, marine bunkering, and industrial lubricant demand, supported by advanced refining and logistics infrastructure that positions it as a regional energy and trade nexus.

Fuel consumption in the UAE is closely linked to several key economic sectors, with transport fuels accounting for the majority of refined product use. Road transportation is the dominant end-use, supporting the extensive network of passenger vehicles, taxis, buses, and commercial trucks across the country’s urban and suburban areas. Aviation fuels hold significant importance, with jet fuel demand driven by the large-scale operations of flag carriers such as Etihad Airways and Emirates Airlines, which facilitate global passenger and cargo connectivity. The marine bunker fuel sector is anchored by Fujairah port, a major global bunkering hub that supplies fuel to international shipping vessels traversing the Gulf and Indian Ocean. The petrochemical industry, centered around ADNOC’s downstream expansion plans, consumes substantial volumes of naphtha and other refined feedstocks to produce chemicals and plastics for domestic use and export. Residential and commercial LPG usage is relatively limited, as most households rely on natural gas infrastructure, however, LPG exports represent a notable segment of product flows. Electricity generation in the UAE predominantly relies on natural gas and renewables, resulting in minimal use of refined fuels for power. Other sectors such as rail transport, domestic waterways, and agriculture are minor consumers of refined fuels but remain consistent in their demand. The diverse sector-wise consumption underscores the UAE’s multifaceted energy demand profile, integrating transport, industrial, and petrochemical needs.

The UAE’s refinery feedstock supply is primarily sourced from abundant domestic crude oil reserves, comprising mainly sour crude extracted from both onshore fields in Abu Dhabi and offshore production in the Arabian Gulf. ADNOC pipelines provide stable and efficient crude transport from production sites to major refinery complexes like Ruwais and Jebel Ali, ensuring consistent feedstock availability with minimal reliance on imports. The refinery feed slate is supplemented by natural gas liquids (NGLs) and condensates derived from associated gas production, which serve as key inputs for producing specialized refinery products such as LPG, petrochemical feedstocks, and light hydrocarbons. The UAE has minimal dependence on imported crude oils due to its significant domestic production capacity, which supports refinery operations and product exports. There is limited integration of biomass or alternative feedstocks in refining, as the sector remains focused on conventional hydrocarbons, although renewable energy projects and pilot programs exist outside the refining space. ADNOC’s feedstock strategy emphasizes maximizing domestic crude utilization while maintaining feedstock quality and refinery operational flexibility to respond to global market conditions and product demand. Infrastructure investments in pipelines, storage, and processing facilities underpin the country’s stable feedstock supply chain, critical for sustaining refinery throughput and downstream product supply.

The UAE’s refinery infrastructure features a high degree of complexity, with major upgrading and conversion units installed at the Ruwais refinery, which has undergone recent expansions to incorporate advanced residue conversion technologies and hydrocracking units. Ruwais is among the world’s largest and most sophisticated refineries, equipped to process heavy sour crude into high-value, low-sulfur fuels that meet stringent environmental standards. The Jebel Ali refinery operates with a focus on lighter refined products, complementing the Ruwais facility by producing fuels tailored to regional market demands. Both refineries have installed deep-conversion and desulfurization units that enable compliance with IMO 2020 sulfur limits and other global fuel quality regulations. The UAE is also advancing its refinery-to-petrochemical integration, with hybrid complexes under development that aim to optimize feedstock use and product yields across fuels and chemicals. Environmental and efficiency upgrades are integral to refinery planning, including investments in emissions control, carbon capture, and the incorporation of renewable blending components such as sustainable aviation fuel (SAF) and renewable diesel. The refinery sector’s technological sophistication positions the UAE as a regional energy leader capable of meeting complex market requirements and supporting the country’s strategic goals for sustainable energy transition. The UAE continues to invest in automation, digital twin technologies, and real-time monitoring systems to boost operational reliability and predictive maintenance. These innovations enhance refining efficiency while reducing unplanned outages and long-term environmental impacts.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Oil Refining Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fule Type
• Gasoline
• Diesel/Gasoil
• Jet Fuel
• LPG
• Fuel Oil
• Others (Lubricants, Asphalt)

By Application
• Road Transportation
• Aviation
• Marine Bunker
• Petrochemical Industry
• Residential & Commercial
• Electricity Generation
• Others (Rail & Domestic Waterways, Agriculture)

By Feedstock
• Crude Oil
• Natural Gas Liquids (NGLs)
• Biomass
• Others (Coal Tar, etc.)

By Complexity Type
• Topping
• Hydro-skimming
• Conversion
• Deep Conversion
• Others Show more