Iraq Lubricant Market Snapshot|Lubricant Demand in Qatar

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Middle East and North Africa Lubricants Market
Outlook to 2019 - Driven by Automotive Demand
and Infrastructural Developments
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• The Middle East and Africa currently consumes an
  estimated of the global demand for lubricants.
  An important trend observed in this region is
  that markets which have been comparatively larger
  from volume point of view were less advanced than
  smaller consuming markets such as the UAE. Iran
  and Egypt were the largest markets in terms of
  consumption, which accounted for nearly of the
  total demand in Middle East in 2014. Northern
  Africa is also a small lubricant consuming market
  from a volume point of view, with Egypt being the
  top most consumers.

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• In terms of production, the biggest player in the
  MENA lubricants market was UAE with a share of
  followed by Iran, which contributed to the
  regions production of lubricants in 2014.
  Although UAE had a relatively small market for
  lubricants, however the region has ample number
  of blending plants that support the export of
  lubricants to Africa, Europe and Asia.

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• Lubricants production in MENA region has changed
  from thousand tons in the year 2009 to
  thousand tons in the year 2014. Production in
  various countries witnessed a negative growth
  rate during years 2010 as financial crisis had
  severely impacted the global economy as well as
  during 2012.
• A decline in overall lubricants production over
  the past five years has also been witnessed. The
  lubricants production of MENA region recorded a
  modest growth of during the period 2009-2014.

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• MENA lubricants market is predicted to pace up
  rapidly in the forthcoming years. Abundance of
  base oil and low cost of production have driven
  the growth of lubricants production in the
  region. Further, rising demand from international
  markets has been inducing producers to expand
  production capacities. It is forecasted that the
  lubricants production will surge from thousand
  tons in the year 2015 to gigantic thousand tons
  by the year 2019 due to expanding refining
  capacities and upcoming blending facilities.

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• Iran lubricants market has been one of the
  largest markets in the MENA region. The country
  produced nearly of the lubricants production
  in the overall MENA region by the end of year
  2014. The country produced approximately
  thousand tons of lubricants in the year 2009 to
  declining production of thousand tons in 2014
  due to decrease in oil production coupled with
  geopolitical issues. Hence, production of
  lubricants has witnessed a substantial decline at
  a CAGR of during the period 2009-2014. The
  country consumes a significant of its
  lubricants production and exports the rest.

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• Despite several difficulties faced by the nations
  due to issuance of sanctions, Iran has managed to
  recover. It is forecasted that the lubricants
  production will surge from thousand tons in the
  year 2015 to gigantic thousand tons by the year
  2019 due to the expanding refinery capacity of
  the country and upcoming petrochemical projects.
  The exports are anticipated to be analogous to
  the production and thereby are expected to
  register significant growth at an appreciable
  CAGR of during the forecasted period
  2015-2019.

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• Heavy duty motor oils contributed nearly to
  the overall consumption of lubricants in Iran in
  2014. The share of PCMOs in the Iran lubricants
  market has been noted at in 2014. Thus, the
  automotive lubricants market collectively
  occupied share in consumption of finished
  lubricants during 2014. During 2014, industrial
  oils contributed a share of in the consumption
  of finished lubricants.

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• Saudi Arabia lubricants market has been amongst
  the largest markets for production as well as
  consumption in the MENA region. The rapid
  infrastructure development in the country coupled
  with high demand from the progressing automotive
  and industrial sector has been majorly driving
  the market for lubricants in Saudi Arabia. Due to
  a significant domestic demand for lubricants in
  the country, Saudi Arabia has been consuming
  significantly large proportions of its
  production.

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• The countrys production of lubricants has
  witnessed a CAGR of during the period
  2009-2014, reaching a production volume of
  thousand tons by 2014. Due to a significant
  domestic demand for lubricants in the country,
  Saudi Arabia has been consuming significantly
  large proportions of its production.

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• Saudi Arabia is likely to leverage its lubricants
  production through enhancing refining capacities
  and upcoming petrochemical projects. Lubricants
  production in the country will reach thousand
  tons by 2019. It is assessed that there will be a
  leap in lubricants production at a CAGR of
  during 2015-2019. With the governments
  initiatives in developing the infrastructure and
  transportation system, the country is expected to
  perceive growth in roadways, railways as well as
  well as sea ports. A number of infrastructure
  projects are also lined up in the near future.

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• During 2014, Petromin has been the leading player
  in the lubricants market and commanded a share of
  through lubricants sales. Aljomaih and Shell
  was the second largest lubricants producing
  company and accounted for of volume sales in
  Saudi Arabia lubricants market.

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• UAE has been the largest lubricants producing
  country in the MENA region. Lubricants production
  in UAE is contributed significantly by refineries
  and blending plants. The total lubricants
  production in the country has escalated from
  thousand tons in 2009 to massive rise to
  thousand tons in 2014 at a CAGR of during this
  period.

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• It is observed that the market witnessed a
  paralyzed growth in year 2010 due to the global
  economic crisis, while it started recovering in
  year 2011. The domestic production during the
  year 2011 had reached thousand tons after which
  it continuously grew at a moderate pace to reach
  thousand tons by the end of year 2014.

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• The transportation segment contributed highest
  demand for lubricants and accounted for nearly
  of the overall sales for lubricants in the UAE.
  The sales for heavy duty motor oil and passenger
  motor oil accounted for and of the total
  market during the year 2014. Further, the
  industrial machinery and equipment segment
  reported a demand for lubricants.
• The demand for industrial machinery and equipment
  application is powered by increasing investments
  in construction, manufacturing and logistics
  sectors.

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• Egypt was amongst the largest producers and
  consumers of lubricants in the North Africa
  region during 2014. Egypt also constitutes one of
  the largest markets for lubricants in Africa.
  During 2014, the country accounted for about
  one-fourth of Africas demand for lubricants. It
  has been analyzed that Egypt accounted for nearly
  of the production of lubricants of MENA region
  during 2014. The lubricants consumption in the
  country has climbed from thousand tons in 2009
  to declining thousand tons in the year 2014.

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• Lubricating oil used in Egypt is of low quality
  and the mineral oil based lubricants are very
  popular. Re-refined oil is also largely used in
  the country since it is cheaper than other
  varieties of oils. Mineral oil based lubricants
  occupied a share of in the sales volume in
  2014, while synthetics contributed only a share
  of in the overall sales volume. It has been
  observed that manufacturing facilities and old
  commercial and private vehicles have been using
  low quality oils, while only the new vehicles in
  the country used synthetic oils as of 2014.

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• It is estimated that lubricants consumption is
  likely to mount at a growth rate of accounting
  to thousand tons of consumption in the year
  2019. Additionally, the market of Egypt is still
  hesitant to adopt the new technology. A major
  reason for this is the low income of the Egyptian
  people. Vehicles owned by people are mostly old
  and poorly maintained and are often repaired with
  outdated or second-hand spare parts. Thus, the
  Egyptian lubricant market will continue to be
  inclined towards traditional lubricants and will
  be one of the last counties in the MENA region to
  shift to premium high quality products.

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• Algeria has also been a major consumer of
  lubricants and since the country is not self
  sufficient in production and has been importing
  significant quantities of lubricants for domestic
  consumption. Due to limited oil production in the
  country, the production of lubricants has
  declined by during the review period
  2009-2014. On the other hand, increasing
  vehicular population and infrastructural
  activities have enabled the consumption to
  enlarge at during 2009-2014.

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• In 2014, the Algerian lubricants market has been
  controlled majorly by NAFTAL which held a market
  share of in terms of volume sales of
  lubricants in the domestic market. Total
  Lubrifiants Algeria occupied a significant share
  in the Algeria lubricants market and controlled
  nearly of the lubricant sales in 2014. The
  remaining share in the market was held by a
  few global companies including Shell and BP,
  which imported products from their global
  production facilities and market them in Algeria.

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• The domestic consumption of Algeria has grown at
  a much faster pace than the countrys production,
  therefore the country relies heavily on imports.
  Consumption is expected to expand at an
  impressive rate of during the forecasted
  period. Algeria is one of the rapidly growing
  markets for lubricants in the MENA region and is
  anticipated to grow at a very fast pace in the
  coming years. With rising purchasing power of
  consumers in the country the vehicle population
  is expected to enlarge in the coming years

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• The MENA lubricants market is projected to
  witness tremendous growth in the coming years.
  The production is anticipated to register a
  noteworthy CAGR of during the forecasted
  period 2015-2019. Rapid industrial development in
  the region, tourism activities and booming
  automotive sector are the major factors fuelling
  the demand for lubricants in MENA countries. The
  total lubricants consumption is forecasted to
  mount from thousand tons in the year 2015 to
  thousand tons by the year 2019.

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• The rapidly increasing vehicle population in the
  region, rising disposable incomes of consumers
  and healthy GDP growth rates allowing governments
  to invest in infrastructural and industrial
  development projects are considered important to
  drive the market in the near future.
• MENA region is a major player in the Group I base
  oil segment and is projected to be the one of the
  last few markets to shift to lighter grade base
  oils.

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• The total lubricants production in MENA region is
  forecasted to increase from thousand tons in
  2015 to mighty thousand tons by the year 2019.
  The leading country UAE is anticipated to
  maintain its top most position with a share in
  overall production. UAE is likely to be the
  leader in MENA lubricants market as its
  production will rise from thousand tons in the
  year 2015 to thousand tons in 2019. Algeria is
  expected to perceive the highest growth in its
  production through enhancing refinery and
  blending capacities at an appreciable CAGR of
  during the forecasted period 2015-2019.

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• Iran leads the market in terms of consumption and
  the countrys consumption is forecasted to surge
  from thousand tons in the year 2015 to
  impressive thousand tons by the year 2019 due
  to increase in vehicle sales. Algeria is expected
  to observe the fastest growth in the region with
  a CAGR of . Another important country that is
  expected to emerge in terms of consumption will
  be Qatar. The rapid infrastructural development
  in the country due of upcoming soccer world cup
  is expected to generate tremendous demand for
  lubricants.

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