The outlook for the Middle East lubricants market

Haytham Yehia, general manager for Middle East and Central Asia Region for Shell Lubricants, discusses the outlook for the lubricants market in the region and the impact of sustainability considerations

What is the outlook for the base oil and lubricants market in the GCC region, and are there any trends you would highlight?

The GCC region offers a dynamic and evolving landscape for the lubricants market. The growth we’re seeing across both industrial and consumer sectors is not just driven by economic activity, it’s driven by a deep shift in how industries are approaching efficiency and performance. In the UAE, the rise in construction and infrastructure projects is fuelling demand, while Iraq’s oil and gas sector is seeing a resurgence, pushing growth in the lubricants market.

But it’s not just about volume, it’s about the shift towards higher-performing, synthetic lubricants. As more modern engines and industrial equipment are introduced, the need for advanced lubrication solutions becomes critical. At Shell, we’re focused on meeting these demands with products designed for today’s challenges and tomorrow’s innovations. Markets like the UAE, Iraq, and Oman are at the forefront of this transformation, and the trends we’re seeing here will set the stage for the broader region.

To what extent is sustainability a factor impacting the lubricants market?

Sustainability is no longer a nice-to-have; it’s a necessity. At Shell, we believe that our role in the market goes beyond providing lubrication solutions, it’s about supporting a sustainable future. Our introduction of the Shell PANOLIN range in the Middle East is a testament to that commitment, addressing the uptick in demand for more sustainable products, especially in sectors such as construction, agriculture, renewable power, hydropower and offshore wind sectors. These biodegradable lubricants provide high performance lubrication while also having the ability to degrade naturally. Biodegradable lubricants help to contribute to a more sustainable future, offering greater protection for wildlife and ecosystems in the event that they come into contact with the environment, in comparison to conventional lubricants. This enables our customers to reduce the risks of operating in sensitive environments.

The portfolio includes biodegradable lubricants for hydraulics, gears, universal tractor transmission oils, engine oils (HDEO), turbine oils, and greases for machine lubrication, including leading OEM-approved products. They are designed with the future in mind, delivering high performance while minimising environmental impact.

How is the carbon-neutral lubricants market developing, and what is the role of these products in reducing emissions and promoting sustainable practices across industries?

The move towards carbon-neutral lubricants is a powerful shift that’s changing the way industries operate. In the Middle East, industries are beginning to embrace carbon-neutral solutions, not just to meet regulatory requirements but as proactive lever in reducing their emissions. At Shell, our carbon-neutral lubricants, alongside initiatives such as our sustainable packaging innovations at the Oman plant, are tangible solutions for businesses to help reduce their environmental impact while maintaining operational efficiency.

Carbon neutrality is about more than just compensating emissions, it’s about designing products and solutions that actively help our customers avoid and reduce their carbon footprints. As industries shift towards more sustainable practices, the role we want to play is to provide our customers products and services that help make their transition possible, and our continued innovation in this space helps ensure we stay ahead of the curve.

How is EV adoption impacting the lubricants market in the region?

The shift to electric vehicles brings both new opportunities and challenges. While traditional lubricants like engine oils are in lower demand for EVs, the need for specialised fluids is increasing. These include transmission fluids, greases, and thermal management fluids, which play a critical role in enhancing the efficiency, longevity, and safety of EV batteries and other key components.
EVs also shift the focus from friction management to thermal management, with cooling fluids becoming more important. In fact, EVs typically use double the amount of coolant compared to internal combustion engines, highlighting the growing importance of thermal management in electric mobility.

While regions like China, Europe, and the US lead in EV adoption, the Middle East, particularly countries like the UAE, is making significant investments in EV infrastructure. This is already beginning to influence demand for EV-specific lubricants. As the UAE targets net-zero emissions by 2050, addressing emissions from transport will be key to achieving this goal.

At Shell, we’re dedicated to advancing reliable, scalable solutions that support the growth of EVs. We’re leveraging our global expertise in advanced fluids to work with OEMs and co-engineering partners to optimise EV performance and efficiency. Our immersion cooling technology, for example, plays a crucial role in managing battery temperatures, ensuring safety and prolonging battery life.