Wood fuel market in GCC

Earlier Report Observations

From 2018 to 2021, wood fuel production in the GCC grew consistently each year, reaching 426.8 thousand m³ by 2021. Market volume, however, declined from 1 222.9 thousand m³ in 2018 to 941.3 thousand m³ in 2021, primarily due to a sharp drop in imports during 2020. The period began with substantial investments in the wood and wood products manufacturing sector across the GCC, notably in Saudi Arabia and the UAE, which helped establish a foundation for gradual production expansion.

From 2022 onward, the market rebounded, with volume rising to 1 220.2 thousand m³ in 2023. This recovery was supported by the GCC's accelerated green growth agenda, which increased demand for wood fuel as a renewable energy source. Structural reforms in some member states, such as Oman, further stimulated output. In 2023, the activation of green corridors and enhanced land ports improved supply chain efficiency for wood products, while the growing emphasis on agriculture and food security added to consumption. Recent trends show a shift in consumer preference toward sustainable and legally sourced wood, alongside continued sector investments, shaping the market's evolution into 2024.

Production wood fuel in GCC

In kind, 2017-2020, K m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Wood fuel production in GCC has grown for the third year in a row. In 2020, the region produced 418.3 thousand cubic meters, marking a 2.0% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 6.2%, which translates to an average annual growth rate of 2.0%.

Annual dynamics of production in GCC in kind, 2017-2020, K m³

Exports wood fuel from GCC

Exports in kind, K m³

Wood fuel exports from GCC totaled 32.3 thousand cubic meters in 2020, down 13.5% compared to the year before. Over the 2017-2020 period, exports fell by 3.3%, with a compound annual growth rate of -1.1%. The lowest export volume was recorded in 2018 at 22.8 thousand cubic meters, while the peak occurred in 2019 with 37.3 thousand cubic meters. Exports saw their sharpest drop in 2018, declining by 31.7%, and their largest surge in 2019, jumping by 63.8%.

Annual dynamics of product's exports from GCC in kind, 2017-2020, K m³

From 2017 to 2020, GCC's wood fuel exports reached a diverse range of markets. Italy accounted for 5.2% of exports in volume, Iraq for 2.9%, and Somalia for 2.5%, together making up just 10.5% of total exports. The remaining 89.5% was distributed among numerous smaller destinations.

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, M $ US

Wood fuel exports from GCC in monetary terms have declined for the second consecutive year. In 2020, exports amounted to 11.2 million US dollars, a 15.5% decrease from the previous year. Between 2017 and 2020, exports increased by 7.3%, averaging an annual growth rate of 2.4%. The highest value was recorded in 2018 at 17.4 million US dollars. The most significant decline occurred in 2019, with a drop of 24.0%, while the largest increase was in 2018, rising by 67.0%.

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

Data from 2017 to 2020 shows that GCC's wood fuel exports in value terms were not heavily concentrated on a few key markets. Afghanistan represented 4.0% of exports by value, Somalia 3.3%, and Jordan 2.9%, together accounting for only 10.2% of total exports.

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

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

Imports wood fuel to GCC

Imports in kind, K m³

Wood fuel imports into GCC have decreased for the second year in a row. In 2020, imports stood at 526.0 thousand cubic meters, showing a sharp year-over-year decline of 31.9%. Over the 2017-2020 period, imports dropped by 7.9%, with a compound annual growth rate of -2.7%. The peak import volume was in 2018 at 843.9 thousand cubic meters. The largest increase occurred in 2018, with a rise of 47.8%.

Annual dynamics of product's imports to GCC in kind, 2017-2020, K m³

From 2017 to 2020, Indonesia, Nigeria, and Vietnam were consistently the top sources for GCC's wood fuel imports by volume. Indonesia contributed 32.2% of imports, Nigeria 14.8%, and Vietnam 9.7%, together making up 56.6% of total imports.

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, M $ US

After rising for two years, wood fuel imports into GCC in monetary terms declined in 2020. The region imported a total of 169.6 million US dollars worth of wood fuel that year, down 9.7% from the previous year. The highest import value was recorded in 2019 at 187.9 million US dollars. The largest increase occurred in 2018, with a growth of 7.4%.

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

Between 2017 and 2020, Indonesia, Nigeria, and Vietnam were the leading suppliers of wood fuel to GCC in value terms. Indonesia accounted for 36.8% of imports by value, Nigeria for 11.2%, and Vietnam for 9.0%, together forming 57.0% of total imports.

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

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