LOCAL REPORT Saudi Arabia
Damien Duhamel, Managing Partner, Eurogroup Consulting Middle East & Asia
Saudi Arabia’s lubricant market, the largest in the GCC at more than 515 million litres annually, is entering a decade of rapid transformation. Once driven largely by steady automotive demand, the Kingdom is now reshaping its lubricant industry through Vision 2030, the government’s far-reaching plan to diversify the economy, attract investment, and build new
industrial capacity. Structural shifts in mobility, energy, and regulation are redefining the market’s outlook and creating opportunities for innovation across the value chain.
Market dynamics
The automotive sector continues to dominate consumption, supported by growing vehicle ownership, expanding logistics fleets, and heavy investment in public-transport infrastructure. At the same time, industrial lubricants are gaining ground as Saudi Arabia pushes ahead with giga-projects such as NEOM, the Red Sea Project, and Qiddiya, as well as new manufacturing zones and logistics corridors. These initiatives are stimulating demand for high-performance products that improve energy efficiency and equipment reliability.
Local production is also expanding. The Kingdom aims to strengthen its base of blending plants and additive suppliers to meet localisation targets and reduce reliance on imports. International companies are increasingly partnering with Saudi manufacturers to bring advanced technology and formulation expertise to the domestic market.
Mobility transformation Vision 2030’s emphasis on electric vehicles (EVs) and cleaner mobility is reshaping lubricant demand patterns. While EV penetration remains modest, production and sales are expected to accelerate as government incentives, charging networks, and OEM partnerships take shape. For suppliers, the shift represents not a decline but a redefinition of demand toward advanced fluids for cooling, e-transmission, and thermal management.
Electric vehicles will not bring an end to lubricants in Saudi Arabia, but they will redefine demand.
The focus is shifting to advanced fluids that present new opportunities for innovation in the sector.
Changing consumer landscape
Social and demographic change is also influencing consumption. The inclusion of women drivers since 2018 has expanded the passenger-car segment, while the **tourism boom (projected to reach 150 million visitors annually by 2030) is generating higher demand from rental fleets, service operators, and logistics providers. Together, these shifts are broadening the lubricant market and spurring competition in product quality and aftersales support.
Sustainability and outlook Saudi Arabia’s sustainability agenda is driving the use of synthetic and low-emission formulations and supporting circular-economy initiatives such as re-refining used oils. As standards tighten, success will hinge on innovation, certification, and alignment with national goals.
The Kingdom’s lubricant market remains the GCC’s largest but is evolving fast. Growth will favour companies that adapt portfolios, localise operations, and invest in technology to align with Vision 2030’s industrial and environmental ambitions.
eurogroupconsultingmea.com/ changing-patterns-in-the-ksa- lubricant-market/
LUBE MAGAZINE NO.191 FEBRUARY 2026
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