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Kuwait dominates fuel supply in Middle East, Africa’s maritime sector

The value of the ship refueling market would rise from $10.67 billion in 2024 to $18.21 billion by 2030, with a compound annual growth rate (CAGR) of 9.2%, according to a report from Research & Markets.

Vessel fuels are essential to the global shipping industry, with the Middle East and Africas strategic location, growing oil production, and expanding maritime infrastructure driving high demand for bunker fuel as key refueling hubs.

The increasing adoption of low-sulfur bunker fuels, driven by global environmental regulations and a growing focus on sustainability, is one of the most prominent trends in the shipyard fuel market in the Middle East and Africa.

 

A report from Research & Markets stated that Kuwait is one of the largest fuel suppliers to the shipping and maritime transport market in the Middle East and Africa, alongside other Gulf companies like Saudi Aramco, Emirates National Oil Company (ENOC) of the UAE, and Qatar Energy, as well as international firms such as ExxonMobil, BP, Shell, Chevron, Total Energy, and others, according to Al Anba newspaper.

The report predicted that the value of the ship refueling market would rise from $10.67 billion in 2024 to $18.21 billion by 2030, with a compound annual growth rate (CAGR) of 9.2%.

Vessel fuels are a key component of the global shipping industry, providing energy to commercial ships, oil tankers, cargo carriers, and other types of vessels. The high demand for bunker fuel in the Middle East and Africa is driven by the region’s strategic location as a major hub for international shipping routes.

Growing oil production

Ports in the Middle East serve as vital refueling terminals for ships transiting between Europe, Asia, and Africa. The region’s growing oil production capacity and expanding maritime infrastructure have solidified its position as a significant player in the global bunker supply chain.

Increase in shipping traffic

With the increase in shipping traffic accompanying the rise of trade routes and the expansion of shipping fleets, the demand for bunker fuels in the Middle East and Africa is expected to continue growing.

Developments in fuel efficiency, regulations on sulfur content, and the increasing adoption of alternative fuels, such as liquefied natural gas, are expected to play a key role in shaping the future growth of the market.

Smoother and efficient refueling of ships

Countries in the region are investing heavily in the modernization of port facilities, fuel storage, and distribution networks, which will facilitate the smoother and more efficient refueling of ships as global trade volumes rise. As emerging markets in Africa and the Middle East expand, the shipyard market in the region is poised for sustainable growth.

Adoption of low-sulfur bunker fuels

The increasing adoption of low-sulfur bunker fuels, driven by global environmental regulations and a growing focus on sustainability, is one of the most prominenttrends in the shipyard fuel market in the Middle East and Africa.

This shift follows the decision to reduce the sulfur content of marine fuels from 3.5% to 0.5%, which took effect in January 2020. This regulation has led to significant changes in the supply and demand dynamics for bunker fuels across the region, resulting in a 15-20% increase in demand for low-sulfur fuels in the Middle East and Africa.

Shipping companies operating in this region are increasingly relying on low-sulfur fuels to comply with new regulations and avoid hefty fines. As a result, bunker suppliers are enhancing their product offerings to meet the growing demand for clean fuels.



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