United Arab Emirates Waste Oil Market is projected to grow at a CAGR of 5.1% in revenue and 2.7% in volume from 2025 to 2031

Engine oil segment by Type held the highest revenue share in United Arab Emirates (UAE) Waste Oil Market -6Wresearch

The engine oil segment held the maximum revenue and volume size in the UAE’s waste oil market by type, driven by high-volume generation from the country’s extensive automotive and transportation sectors. Its dominance is reinforced by widespread use across passenger vehicles, commercial trucks, and heavy machinery, ensuring a steady waste stream. The well-developed collection and recycling infrastructure, along with strong re-refining potential into base oils or industrial fuel, enhances its recoverable value and secures the largest share of total market revenue.

According to 6Wresearch, the United Arab Emirates (UAE) Waste Oil Market is projected to grow at a CAGR of 5.1% in revenue and 2.7% in volume from 2025 to 2031. The UAE waste oil market has experienced growth between 2021 and 2024, driven by heightened environmental awareness and evolving regulatory frameworks. In 2021, the UAE generated hazardous waste, with oil and chemical waste contributing a significant share. The government’s commitment to sustainability, through policies such as Federal Law of 2018 on Integrated Waste Management and Cabinet Resolution of 2018 regulating waste oils, has spurred demand for recycling and treatment solutions. These factors are expected to drive the continued growth of the waste oil recycling market in the UAE.

From 2025 to 2031, the waste oil recycling market in the UAE is projected to expand significantly, supported by stricter environmental regulations and increased public awareness. The National Biofuels Policy and Dubai Law of 2024 on Waste Management would further promote recycling initiatives and sustainable disposal practices. By 2031, the UAE aims to treat municipal solid waste, hazardous waste, and non-hazardous waste, while ensuring some portion of country’s landfills meet sanitary standards, positioning the market for continued growth through sustainable waste management practices. This shift would contribute to the continued alignment of the waste oil market with the UAE's low-carbon and circular economy goals.

According to Bhawna, Assistant Manager at 6Wresearch, the vacuum distillation process held the largest revenue size in the UAE’s waste oil market by technology, driven by its efficiency in recovering high-quality base oils from used lubricants. Widely adopted across re-refining facilities, it separates impurities at lower temperatures, minimizing degradation and maximizing yield. The UAE’s investments in advanced recycling plants and circular economy goals have boosted adoption. Proven scalability, energy efficiency, and compatibility with hydrogen treatment reinforce its dominance and market contribution.

United Arab Emirates Waste Oil Market (2025-2031) report provides an in-depth analysis with 28 figures and 8 tables, covered in 85 pages. The report thoroughly covers the market by source, by type, by technology, and by end-user. The United Arab Emirates Waste Oil Market outlook report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.