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  • October 2020
  • 110 pages
  • ID: 5865888
  • Format: PDF
  • Mordor Intelligence LLP


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The UAE lubricants market is expected to witness a CAGR of less than 2% during the forecast period. The major factor driving the growth of the market studied is the expanding construction sector in the United Arab Emirates. On the flipside, the high price of synthetic lubricants and the increasing drain intervals are expected to hinder the growth of the market studied.

- Investments and government plans to support industrial growth in the country are likely to provide a major growth opportunity for the market studied during the forecast period.
- Automotive and other transportation segment dominated the market and is expected to continue its dominance during the forecast period.

Key Market Trends
Increasing Construction Activities to Drive the Demand in the Country

- The construction sector in the country has been expanding at a significant rate, since the past few years. The trend is expected to continue during the forecast period, primarily due to the increasing number of initiatives taken by the government to develop infrastructure and construction, as well as the improving investor confidence in the country’s economy.
- Dubai is expected to be one of the fastest-growing cities in the entire Middle East & African region, as the country is preparing to host the Dubai World Expo 2020.
- Additionally, the construction sector is expected to witness a considerable growth in Abu Dhabi. This growth is primarily owing to the implementation of grand ventures in the major cities of the United Arab Emirates.
- The domestic residential construction market is dominated by the United Arab Emirates’ two major cities, Dubai and Abu Dhabi. The UAE government announced its decision to bridge the gap between the supply and demand of housing units. The government has also allocated land in Al Quoz and Muhaisnah (Dubai) for the construction of affordable housing units.
- Such aforementioned factors are driving the demand for the market studied.

Engine Oil Segment to Dominate the Market

- Engine oils are widely used for lubricating internal combustion engines in different types of automobiles. They are generally composed of base oils and additives.
- The base stock is either made using petroleum and synthetic chemicals, or from a mixture of both. The base stock is responsible for lubricating the moving parts in the engine and for removing the excess built-up heat. Meanwhile, additives are added for controlling the oil viscosity and lubricity, as well as protecting the engine parts against wear and tear.
- Various types of additives that are added in engine oils include oxidation inhibitor additives, dispersant additives, detergent additives, anti-foaming additives, viscosity index modifiers, anti-wear additives, corrosion inhibitor additives, and anti-freeze additives.
- Some of the chief functions offered by engine oils are resistance against corrosion and wear and tear to ensure increased engine life and better performance; reduce friction; increase engine performance; reduce fuel consumption; remove impurities and achieve engine cleanliness; optimize engine efficiency; and prevent energy loss by providing optimum cooling.
- Due to the persistence of very high temperature in the United Arab Emirates, engine oils that are thick in nature are widely used. The usage of thin oils leads to the quick exhaustion of oils and engine damage.

Competitive Landscape
The market studied is consolidated among the top five players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. The key players include, Adnoc, ENOC Company, Total, Royal Dutch Shell PLC, and Exxon Mobil Corporation, accounting for about 70% of the market studied.

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