Saudi Arabia is shaping the base oils and lubricants

Aleqtsad. Riyadh

At the 19^th ICIS Middle East Base Oils and Lubricants conference, Samer Al Hokail, President and CEO of Luberef, gave a presentation on Base oils and lubricants development in the Middle East: Driving growth in the region and the global market.

He opened with a quick overview of where the industry currently stood. “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 then turned to the Middle East and the rapid growth the industry is seeing. “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.

“Saudi Arabia is shaping the landscape,” said Samer Al Hokail. “It is located in the heart of the fastest growing region and has the potential to shape the industry landscape and become a lubricant hub.”

Saudi Arabia supports a robust ecosystem of base oil products which produce 1.4MMT of premium base oils and 800KT blending capabilities. It is also in a premium location to support emerging markets, such as Africa while staying aligned with Vision 2030 to meet carbon targets.

Samer Al Hokail also highlighted Luberef’s contribution to the industry landscape. They are obligated to continue producing premium base oils while fostering partnerships with the local community. They strive to enhance their supply chain with local products and continue the research and development of new formulations and approvals. Finally, they ensure they target net-zero goals while maintaining operational excellence.