Sales of vehicles In August 2025, Qatar’s Ministry of Commerce and Industry issued a decree that requires all new and used vehicles sold in the country to meet Gulf Standard Specifications. This ban applies to both physical and online sales platforms and prohibits the sale, display, or advertising of non-compliant vehicles to maintain high quality in the automotive market.
EV initiatives and targets Countries in the region are undertaking ongoing initia- tives to increase adoption of EVs and reduce emissions.
Saudi Arabia is making significant strides towards electrifying its vehicle fleet, aiming for electric vehicles (EVs) to constitute 30% of the fleet in Riyadh by 2030. The country is heavily investing in domestic EV manufacturing, targeting an annual production of 500,000 cars by the end of the decade through initiatives like CEER and investments in Lucid Motors. United Arab Emirates (UAE) has aims for 10% of all cars to be green, including EVs and hybrids, by 2030, and 100% by 2050 and Dubai targeting 30% of annual new car sales to be green vehicles by 2030.
Qatar plans for 10% of new vehicle sales to be EVs by 2030 and has already electrified its public bus fleet, backed by the installation of over 300 fast DC chargers by August 2025.
Oman has with plans to transition 79% of its vehicle fleet to electric by 2035 and 22,000 EVs on the roads by 2030.
Kuwait aims for a 30% EV penetration rate by 2030.
The positive impact The alignment with international standards promotes
market consistency in product quality across the GCC, facilitating trade and reducing barriers for suppliers. Stricter emission standards drive the adoption of cleaner technologies, reducing the automotive sector’s carbon footprint and aligning with global sustainability goals.
The implementation has prompted a market shift for engine oil towards higher-quality, advanced lubricants, necessitating changes in product formulation and market strategy high-performance, synthetic and semi-synthetic engine oils. The demand for monograde HDMO has completely diminished across the region. This significant decline is attributed to several factors, including regulations like those from the Saudi Standards, Metrology, and Quality Organization (SASO) regarding minimum API service categories, the advent of more efficient vehicles, and the growth of large fleet operators.
This change aligns with the growing number of modern, fuel-efficient vehicles in the GCC, which require more advanced lubricants.
The negative impact The increasing adoption of EVs and hybrids directly reduces the overall demand for engine oil used in internal combustion engines (ICE) as the need for frequent oil changes will decrease.
The GCC countries, traditionally dependent on oil as a major economic driver, are now seeking to diversify their economies and develop capabilities in other sectors besides oil. National strategies to promote manufacturing capabilities with policies like Saudi Arabia’s Vision 2030 and UAE’s Operation 300bn aims to nearly double the manufacturing sector’s contribution to GDP by 2031.
Figure 1: Renewable energy capacity in Middle East (GW) 2020-2024
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LUBE MAGAZINE NO.190 DECEMBER 2025
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