Middle East and Africa Biofuels Market (By Fuel Type: Biodiesel, Ethanol; By Feedstock: Coarse Grains, Non-agri Feedstock, Biomass, Vegetable Oil, Sugar Crop, Jatropha, Others) Industry Size, Share, Growth, Trends 2025 to 2034
The Middle East & Africa biofuels market was valued at USD 25.57 billion in 2024 and is projected to climb to USD 51.49 billion by 2034 at a 7.25% CAGR, supported by energy diversification strategies and increasing investment in renewable fuel production.
| Reports Attributes | Statistics |
| Market Size in 2024 | USD 25.57 Billion |
| Market Size in 2025 | USD 27.79 Billion |
| Market Size in 2031 | USD 42.77 Billion |
| Market Size by 2034 | USD 51.49 Billion |
| CAGR 2025 to 2034 | 7.25% |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
Demand for biofuels is rising as governments across the region seek to strengthen energy security and diversify their national energy portfolios. Many Middle Eastern economies depend heavily on petroleum, leading to an increased push toward renewable and alternative fuels to prepare for long-term economic transitions. Saudi Arabia and the UAE are exploring biofuel development through national sustainability programmes, while African nations such as South Africa, Kenya and Nigeria are emphasising biofuels as part of broader rural development strategies. The African Union has highlighted in multiple policy briefs that bioenergy can play a significant role in agricultural value-chain development and rural income generation.
Rising transportation emissions are another major driver. The WHO Africa Regional Office noted in 2023 that transport-related pollution remains a significant health burden across African cities, encouraging governments to seek cleaner fuel alternatives. Ethanol blending programmes in countries such as South Africa, Kenya and Ethiopia are gaining momentum, supported by sugarcane and sorghum industries. Meanwhile, Gulf airlines and logistics companies are beginning to explore sustainable aviation fuel as global airline emission-reduction regulations tighten. Waste-based feedstocks, including used cooking oil and municipal organic waste, are also receiving increased attention due to their availability and favourable carbon profiles.
Despite strong long-term potential, the region faces several structural challenges. Feedstock limitations in arid Middle Eastern countries restrict the viability of large-scale biofuel production, and water scarcity presents additional constraints. In Africa, although agricultural potential is high, yield variability and insufficient mechanisation often limit consistent feedstock supply. The Food and Agriculture Organization has repeatedly emphasised that climate-related disruptions, especially droughts in eastern and southern Africa, heavily influence sugarcane and oilseed production.
Infrastructure gaps also present barriers. Many countries lack the refining, blending and logistical systems needed for large-scale ethanol or biodiesel distribution. Limited investment capital, high interest rates and long permitting processes further slow development of new biorefineries. Policy inconsistency remains a challenge, as some countries have yet to establish long-term biofuel blending mandates. Public awareness is another obstacle, as consumers and businesses in many areas are less familiar with renewable fuel benefits.
The region consists of two distinct market groups. Gulf Cooperation Council countries are exploring biofuels within broader sustainability agendas, focusing mainly on waste-based feedstocks, sustainable aviation fuel and research partnerships. These countries depend heavily on imported biomass, but strong government funding and industrial innovation support long-term development.
African countries represent the most active and fastest-growing segment due to their large agricultural bases. South Africa leads in biodiesel initiatives, supported by canola, soybean and used cooking oil feedstocks. Kenya and Ethiopia are expanding ethanol programmes linked to sugarcane production, while Nigeria and Ghana are developing policies to support biodiesel and ethanol blending. Many countries are also exploring biogas and waste-to-energy systems, supported by multilateral development agencies.
Saudi Arabia is gradually building its renewable fuel ecosystem under the framework of Vision 2030. The Ministry of Energy has initiated research programmes to explore sustainable aviation fuel pathways, supported by partnerships between national airlines and research institutions. Waste-based feedstocks, including used cooking oil and municipal organic waste, are being assessed for potential commercial-scale biodiesel production. Although domestic feedstock availability is limited, the country is focusing on technology readiness, pilot-scale projects and integration of renewable fuels into long-term decarbonisation plans.
The UAE has emerged as one of the most active regional players in biofuels due to strong sustainability commitments and a well-developed innovation ecosystem. The Ministry of Climate Change and Environment has supported projects exploring waste-based biodiesel and sustainable aviation fuel. Dubai and Abu Dhabi have rolled out used cooking oil collection initiatives that feed into local biodiesel production. The UAE’s aviation sector is particularly influential, with national airlines participating in global sustainable aviation fuel demonstration flights and forming partnerships to scale regional SAF production. These initiatives position the UAE as a future hub for advanced renewable fuels in the Gulf.
| Segments | Shares (%) |
| Biodiesel | 60% |
| Ethanol | 40% |
| Segments | Shares (%) |
| Coarse Grains | 8% |
| Non-agri Feedstock | 10% |
| Biomass | 12% |
| Vegetable oil | 30% |
| Sugar crop | 5% |
| Jatropha | 10% |
| Others | 25% |
Published by Vidyesh Swar
