GCC: Palm Oil Market 2024

Palm Oil Market Size in GCC

In 2022, the GCC palm oil market decreased by -58.5% to $X for the first time since 2018, thus ending a three-year rising trend. Overall, consumption recorded a deep setback. As a result, consumption attained the peak level of $X, and then contracted dramatically in the following year.

Palm Oil Production in GCC

In value terms, palm oil production soared to $X in 2022 estimated in export price. Over the period under review, production recorded a significant increase. The pace of growth was the most pronounced in 2019 when the production volume increased by 9,729%. Over the period under review, production reached the maximum level in 2022 and is likely to see gradual growth in years to come.

Palm Oil Exports

Exports in GCC

In 2022, palm oil exports in GCC shrank to X tons, waning by -11.9% against the year before. Total exports indicated a temperate increase from 2012 to 2022: its volume increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +14.7% against 2020 indices. The pace of growth was the most pronounced in 2015 when exports increased by 34% against the previous year. As a result, the exports attained the peak of X tons. From 2016 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, palm oil exports shrank to $X in 2022. Overall, exports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when exports increased by 41%. Over the period under review, the exports reached the maximum at $X in 2015; however, from 2016 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

Oman (X tons) and the United Arab Emirates (X tons) were the largest exporters of palm oil in 2022, amounting to approx. 48% and 40% of total exports, respectively. It was distantly followed by Saudi Arabia (X tons), making up a 12% share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Oman (with a CAGR of +12.8%), while the other leaders experienced mixed trends in the exports figures.

In value terms, Oman ($X), the United Arab Emirates ($X) and Saudi Arabia ($X) were the countries with the highest levels of exports in 2022, together accounting for 100% of total exports.

In terms of the main exporting countries, Oman, with a CAGR of +9.1%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced mixed trends in the exports figures.

Export Prices by Country

The export price in GCC stood at $X per ton in 2022, declining by -3% against the previous year. In general, the export price continues to indicate a slight decrease. The most prominent rate of growth was recorded in 2020 an increase of 15% against the previous year. Over the period under review, the export prices hit record highs at $X per ton in 2012; however, from 2013 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Saudi Arabia ($X per ton), while Oman ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+1.2%), while the other leaders experienced a decline in the export price figures.

Palm Oil Imports

Imports in GCC

Palm oil imports contracted significantly to X tons in 2022, shrinking by -50.8% on the previous year. Overall, imports showed a noticeable shrinkage. The pace of growth was the most pronounced in 2021 when imports increased by 22% against the previous year. As a result, imports reached the peak of X tons, and then contracted notably in the following year.

In value terms, palm oil imports shrank significantly to $X in 2022. Over the period under review, imports saw a abrupt decline. The growth pace was the most rapid in 2021 with an increase of 68% against the previous year. As a result, imports reached the peak of $X, and then fell remarkably in the following year.

Imports by Country

In 2022, the United Arab Emirates (X tons) represented the largest importer of palm oil, making up 60% of total imports. Oman (X tons) held a 27% share (based on physical terms) of total imports, which put it in second place, followed by Qatar (4.7%). The following importers - Kuwait (X tons) and Bahrain (X tons) - each finished at an 8.2% share of total imports.

Imports into the United Arab Emirates increased at an average annual rate of +1.1% from 2012 to 2022. At the same time, Qatar (+26.4%), Bahrain (+10.5%) and Oman (+2.1%) displayed positive paces of growth. Moreover, Qatar emerged as the fastest-growing importer imported in GCC, with a CAGR of +26.4% from 2012-2022. Kuwait experienced a relatively flat trend pattern. From 2012 to 2022, the share of the United Arab Emirates, Oman, Qatar and Bahrain increased by +24, +12, +4.4 and +2.9 percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported palm oil in GCC, comprising 54% of total imports. The second position in the ranking was held by Oman ($X), with a 27% share of total imports. It was followed by Qatar, with a 7.8% share.

In the United Arab Emirates, palm oil imports remained relatively stable over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: Oman (+1.3% per year) and Qatar (+28.8% per year).

Import Prices by Country

The import price in GCC stood at $X per ton in 2022, reducing by -9.3% against the previous year. Over the period under review, the import price continues to indicate a mild slump. The growth pace was the most rapid in 2021 when the import price increased by 38% against the previous year. The level of import peaked at $X per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Bahrain ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Bahrain (+2.4%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform