Development of renewables in the manufacturing sector
In addition to EV targets, GCC countries are also focusing on emission reductions through renewable energy initiatives. The UAE aims to cut emissions by 40% by 2030, while Saudi Arabia plans for 50% of its energy mix to come from renewables by the same year. Oman and Qatar have set targets to reduce emissions by 21% and 25% by 2030, respectively, and Bahrain aims for a 30% reduction by 2035. These emission reduction goals support the transition to cleaner technologies and further decrease reliance on fossil fuels, including traditional engine oils. As the region prioritises environmental sustainability and the adoption of alternative energy sources, the engine oil market is likely to experience a negative impact due to the reduced demand for conventional products.
Hydrogen strategy: The UAE’s Hydrogen Strategy aims to produce 1.4 million tons of hydrogen annually by 2031 and 14.9 million tons by 2050, with plans to establish hydrogen oasis for production and utilisation. Meanwhile, Saudi Arabia’s NEOM Green Hydrogen Company is developing the world’s largest hydrogen production facility, expected to start production by 2027, converting hydrogen into green ammonia for export.
Developing local manufacturing capabilities will provide growth opportunities for industrial lubricants and metalworking fluids across automotive, metals and renewable manufacturing. The rise in adoption of wind turbines is expected to drive demand for synthetic gear oils.
Meanwhile, suppliers have spearheaded the following initiatives...
Re-refined base oils Increase in capacity of re-refined base oil production. For example: In Saudi Arabia, Yanbu plant owned by YUNITCO plans to increase capacity from 120 KT to 200 KT by end of 2025.
Eco-Friendly Formulations
Development of bio-based and biodegradable lubricants for sensitive ecosystems (marine, construc- tion) ensures compliance with stricter environmental regulations and enhances corporate sustainability reputations. ADNOC launched an engine oil in the UAE that was formulated with 100% plant oil.
E-fluids for EVs Local and international companies operating in the GCC, including Gulf Lubricants, Shell, and TotalEnergies, have launched specialised product lines for electric and hybrid vehicles.
Conclusion The recent regulatory policies adopted by the GCC countries reflect a strong commitment to aligning with international standards and addressing regional needs. In the automotive sector, harmonised standards and regulations ensure product quality, environmental protection, and consumer safety. In the industrial sector, ambitious renewable energy and hydrogen strategies demonstrate a commitment to sustainability and energy diversification. As these regulations continue to evolve, they will play a crucial role in shaping the future of the automotive and industrial sectors in the Middle East, driving innovation and sustainable growth.
klinegroup.com
Figure 2: Middle East EV and emission reduction targets
LUBE MAGAZINE NO.190 DECEMBER 2025
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