Soybean oil and fractions market in GCC

Earlier Report Observations

The soybean oil market in the GCC experienced considerable volatility from 2018 to 2023, with total volume falling from 163.4 thousand tons to a low of 71.4 thousand tons in 2020 before rebounding to 156.4 thousand tons in 2022. This initial contraction was driven by a combination of rising exports, which nearly doubled from 49.3 to 94.8 thousand tons, and a steep decline in imports, which halved from 94.6 to 49.3 thousand tons over the same two-year period.

Market conditions shifted from 2021 onward, as import volumes began to recover and export activity moderated. The rebound in market size to 156.4 thousand tons in 2022 was supported by domestic production reaching 139.7 thousand tons, its highest point in the period, alongside a resurgence in imports to 85.2 thousand tons. However, the market contracted again in 2023 to 109.3 thousand tons, primarily due to a sharp drop in local output to 98.6 thousand tons.

The overall market trajectory shows a pattern of recovery and adjustment, with the peak in 2022 nearly matching the 2018 level before retreating. Changes in the balance between domestic production and international trade flows were central to these volume movements throughout the six-year span.

Production soybean oil and fractions in GCC

In kind, 2017-2020, K t

Top producers of soybean oil and fractions, 2017-2020

World map of production of soybean oil and fractions, 2017-2020

Soybean oil and fractions production in the GCC region declined after two years of growth. In 2019, production reached its peak at 135.6 thousand tons, but then fell by 13.8% year-over-year to 116.9 thousand tons in 2020. Over the entire period from 2017 to 2020, production increased by 15.7%, which translates to an average annual growth rate of 5.0%. The most significant increase occurred in 2018, when production rose by 16.8%.

Annual dynamics of production in GCC in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the value of soybean oil and fractions production in the GCC was 213.8 million US dollars, showing a gradual decline of 4.5% compared to the previous year. Looking at the period from 2017 to 2020, production value increased by 9.7%, with an average annual growth rate of 3.1%. The lowest value was recorded in 2018 at 177.9 million US dollars, while the highest was in 2019 at 223.9 million US dollars. The largest decline occurred in 2018 with an 8.7% drop, and the largest increase was in 2019 with a 25.9% rise.

Annual dynamics of production in GCC in value, 2017-2020, M $ US

Exports soybean oil and fractions from GCC

Exports in kind, t

Soybean oil and fractions exports from the GCC increased for the second year in a row. In 2020, exports reached 94 794 tons, marking a substantial improvement of 23.0% compared to the previous year. Over the period from 2017 to 2020, exports grew by 51.4%, which equates to an average annual rate of 14.8%. The lowest export volume was in 2018 at 49 270 tons, with the largest decline that year at 21.3%. The most significant increase occurred in 2019, when exports surged by 56.4%.

Annual dynamics of product's exports from GCC in kind, 2017-2020, t

An analysis of exports in kind from 2017 to 2020 reveals a broad distribution across many markets. Jordan accounted for 25.8% of exports, India for 16.5%, and Malaysia for 2.4%. Together, these three countries represented only 44.7% of total flows, with the remaining 55.3% going to various other partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from GCC in kind, 2017-2020

Exports in value, K $ US

Exports of soybean oil and fractions from the GCC in value terms increased for the third consecutive year. In 2020, exports stood at 82 331 thousand US dollars, which is 0.9% higher than the previous year. From 2017 to 2020, exports grew by 51.6%, with an average annual growth rate of 14.9%.

Annual dynamics of product's exports from GCC in value, 2017-2020, K $ US

From 2017 to 2020, exports in value terms of soybean oil and fractions from the GCC were widely dispersed across partner countries. Jordan represented 25.0% of exports, India 14.4%, and Malaysia 2.5%. Combined, these three countries accounted for only 41.9% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from GCC in value, 2017-2020

Imports soybean oil and fractions to GCC

Imports in kind, t

Soybean oil and fractions imports into the GCC declined for the second year in a row. In 2020, imports were recorded at 49 341 tons, reflecting a sharp decrease of 31.5% compared to 2019. Over the period from 2017 to 2020, imports decreased by 40.3%, with a compound annual growth rate of -15.8%. The highest import volume was in 2018 at 94 592 tons, and the largest increase occurred that year with a 14.4% rise.

Annual dynamics of product's imports to GCC in kind, 2017-2020, t

Data from 2017 to 2020 indicate that imports in kind of soybean oil and fractions to the GCC were not concentrated on a few key sources. The United States accounted for 12.6% of imports, Ukraine for 9.6%, and Argentina for 7.4%. Together, these three countries represented only 29.6% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to GCC in kind, 2017-2020

Imports in value, K $ US

Foreign supplies of soybean oil and fractions to the GCC declined for the second consecutive year. In 2020, imports totaled 61 921 thousand US dollars, corresponding to a solid drop of 14.0% compared to the previous year. Over the period from 2017 to 2020, imports decreased by 27.9%, with a compound annual growth rate of -10.3%. The highest value was recorded in 2018 at 88 723 thousand US dollars. The largest decline occurred in 2019 with an 18.8% drop, while the largest increase was in 2018 with a 3.3% rise.

Annual dynamics of product's imports to GCC in value, 2017-2020, K $ US

From 2017 to 2020, the partner landscape for imports in value terms was diverse. The United States accounted for 15.0% of imports, Ukraine for 8.3%, and Argentina for 6.4%. Together, these three countries formed only 29.7% of total flows, with the substantial remaining 70.3% coming from many other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to GCC in value, 2017-2020