The oil and gas downstream market of the United Arab Emirates (UAE) is expected to grow at a CAGR of more than 1% during the forecast period of 2020-2025. The rise in production of crude in the initial phase of 2020 is expected to increase the production of refined products. Moreover, the various plans of the government to invest in the downstream market and expand the refining capacity of existing refineries are expected to drive the market further. On the flip side, the high volatility of crude oil prices and the Coronavirus pandemic is expected to restrain the market growth significantly.

  • In 2018, Abu Dhabi National Oil Company announced to invest USD 45 billion in upcoming years to increase the refining capacity by 65% by 2025. With this, significant growth in the refining market is expected in the forecast period.
  • The United Arab Emirates had 97.8 thousand million barrels of proved reserves of crude oil. The ample amount is expected to continue the supply of crude oil to refineries for an extended period, creating significant opportunities in the downstream sector.
  • Brooge Petroleum & Gas Investment Co. is building a refinery with a capacity of refining 250,000-barrels per day, designed to produce bunker fuel in Fujairah. With such new projects coming up in the country, the downstream market is anticipated to grow over the forecast period.



Key Market Trends

Refining Sector to Witness Significant Growth

  • With oil proved reserves of 97.8 thousand million barrels estimated in 2018, the United Arab Emirates has a vast reserve that is expected to drive the downstream market in the forecast market.
  • The refining throughput capacity of the United Arab Emirates has shown significant growth with 643 thousand barrels per day in 2014 and 1044 thousand barrels per day in 2018. With this, the refining market is expected to grow considerably.
  • With the announcement by Abu Dhabi National Oil Company in 2018 to invest USD 45 billion in the refining market in the upcoming five years, a robust growth can be expected in the refining sector of the United Arab Emirates.
  • In February 2019, USD 8 million worth projects for the engineering and design for a refinery with capacity 600,000 barrels per day was allocated to Wood Group. With such projects, refining capacity can witness growth in the forecast period.
  • With vast natural gas and oil reserves and large refining capacity, the United Arab Emirates is expected to show significant growth in the coming period.



Government Initiatives and Upcoming Projects to Drive the Market

  • The total export volume of refined petroleum products in Abu Dhabi has shown continuous growth with 8.6 million metric tons in 2014 and 30.2 million metric tons in 2018.
  • Brooge Petroleum & Gas Investment Co. is building a refinery with a capacity of refining 250,000-barrels per day, designed to produce bunker fuel in Fujairah. With such new projects, growth in the downstream market is anticipated.
  • Emirates National Oil Company’s refineries are going to be upgraded with additional processing units, including a new LPG/Naphta hydrotreater, an isomerization unit, kerosene hydrotreater, and a diesel hydrotreater. The project is expected to be operational in the last quarter of 2019.
  • In 2018, construction for Borouge 3- Polyprpalane plant began with a cost estimation of USD 550 million. The project is expected to complete by 2021 with a production capacity of 480,000 tons per year, driving the petrochemical market significantly.
  • The oil and gas downstream market is expected to grow considerably with upcoming deals and contracts of the government and increasing interest of international companies. Considerable growth can be witnessed in the forecast period.



Competitive Landscape

The United Arab Emirates oil and gas downstream market is consolidated. Some of the major companies include Emirates National Oil Co, Abu Dhabi National Oil Co, Total SA, Royal Dutch Shell Plc, and Exxon Mobil Corporation.

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