The United Arab Emirates will see a potential industrial growth in the coming years, especially from the UAE Lubricant industry, because day by day a large number of new companies and startups started to enter into the lubricant manufacturing industry. This is due to the huge demand for lubricants especially from African countries and also from European countries. European countries now started to import lubricant oils from GCC countries because earlier they imported oil from Russia but recently all the European countries stopped importing oil from Russia due to Russia’s war against Ukraine. This has motivated the European countries not only to ban Russia from importing lubricant oil, but also from participating in any trade aspect with Russia.
Most of the newly established lubricant companies in UAE can utilise this situation to make a profit and also to find funds to invest more in their lubricant product research & development process, which helps them to manufacture lubricant oils with excellent quality and performance. This profit-making opportunity also helps them to implement new advanced technologies for the lubricant manufacturing process.
Today consumers are more aware of the quality and manufacturing standards of lubricant oils. The emergence of the internet helps the public to know more about the products and its manufacturing standards, as a result customers are always conscious and have enough knowledge about the products and services needed to purchase in their day-to-day life, it’s applies not just about lubricant products but also for all kinds of products and services. In this case, today most customers prefer to buy top-quality lubricant products in order to ensure smooth functioning of their vehicles and machineries.
Geographical location of the United Arab Emirates is always a key benefit not only for lubricant companies but also for all manufacturing and exporting companies operating in the Middle east. Geographically UAE is almost located in the middle of the world so it helps companies to expand their business by finding new international markets such as easy access to African countries, South American countries,European and Asian countries.
Another factor contributing to the growth of the lubricant industry in the UAE is the support schemes & policies provided by the UAE government. Because these lubricant companies are paying millions to the government as tax and it’s considered as the largest part of the government’s revenue. So the UAE government is always ready to provide various fund schemes and tax avoidance for the lubricant industry sectors.
Due to the emergence of technological advancement in the manufacturing sector helps lubricant companies in UAE to grow faster when compared with past scenarios. At the same time, lubricant companies themselves are trying to invest more in their R&D process to manufacture the best quality lubricant products which are also suited for our environment. Right now most of the lubricant companies in UAE are more focused on producing synthetic lubricants that have a longer lifespan with optimum performance when compared with old lubricant products.
A new generation of electric vehicles has already begun around the world and from outside it may feel that this new electric era will hurt the lubricant industry and companies operating in it. But the truth is not, because electric vehicles do not need any kind of fuel or lubricants for their functioning but the electric vehicle has so many moving parts similar to fuel-using vehicles so in order to ensure smooth functioning of these movable parts it definitely requires lubricants. So if the electric vehicle industry starts to flourish it means it is good and beneficial for lubricant companies also. So lubricant companies have already started to invest and develop new lubricant products especially for electric vehicles.
The future of the lubricant industry in the UAE seems to be safe and highly potential, with significant growth expected in the coming years.
Global Aviation industry plays a vital role in the growth of the lubricant industry in the UAE. The aviation industry is considered as a valuable revenue generating sector apart from automobiles because the aviation industry always needs a large amount of lubricants for their day to day airline operations and maintenance.
Infrastructure development is another factor that contributes to the growth of the lubricant industry. Currently new infrastructure projects are launching every day across the world especially in developed countries where most of these projects are launched and developed by the governments of these countries and remaining are done by private organisations. For making this project live lubricants plays a vital role, because these projects are constructed with the help of a large number of equipment and machineries so in order to ensure protection and smooth functioning of these machineries requires sufficient lubrications.
Currently the UAE government is planning to invest in other sectors apart from the lubricant industry because it’s not safe for UAE to always depend on oil and gas anymore so they need to promote other sectors like tourism,infrastructure etc. All these sectors always require lubricants to ensure smooth functioning of their operation facilities. So this kind of government economic diversification somehow helps the lubricant industry to grow.
The lubricants industry in the UAE has been able to grow through strong partnerships between local and international companies. Local companies have been able to leverage the expertise of international companies to develop high-quality lubricants that meet the needs of the local market. This has enabled the UAE to become a hub for lubricant production and distribution in the region.
UAE’s international export & import trade agreements with other countries play a vital role in the growth of various industries in the United Arab Emirates. Some of these trade policies and agreements can benefit lubricant companies in UAE while trading with lubricant importing countries in the form of export tax free,export subsidies etc.
The future of the lubricant industry & companies operating in the UAE seems to be safe and highly potential, with significant growth expected in the coming years and will depend on several factors like international and local market conditions, environmental regulations, depth in research and development, trade policies and agreements. Lubricant companies that can adapt to these changing factors and innovate to meet the needs of customers are likely to be successful in the long run.
