Middle East and North Africa Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market Report and Forecast 2025-2034

Middle East and North Africa Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market Outlook

The Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market reached a value of about USD 25953.11 million in 2023. the market size is further expected to grow at a CAGR of 4.4% during the forecast period of 2024-2032.

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Key Trends in the Market

Vacuum distillation is a process of separating substances by reducing pressure to less than atmospheric pressure. Under low pressure, crude oil is distilled to produce vacuum residue or vac resid, which is a solid cut from distillation that weighs the most and is formed at the bottom of the vacuum distillation tower. Vacuum residue is combined with either leftover fuel oil or asphalt if it is not improved. Some of the products created through vacuum distillation include kerosene, vacuum gas oil or VGO, and bitumen. 

• The Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market demand is projected to increase as a result of the usage of vacuum gas oil in the production of diesel. An increase in research and development spending on fluid catalytic cracking and hydrocracking is enabling this method to produce high-quality results. Vacuum gas oil can therefore aid in reviving market demand for diesel. This is helping the growth of the market for vacuum bottom residue (kerosene, VGO and bitumen) in the Middle East and North Africa.

• Kerosene has a wide range of applications, including in aircrafts, entertainment activities, and chemical industries. It is also used as heating oil and lamp fuel. The kerosene used in the aviation sector is of slightly higher quality than that used in other industries. The Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market is thus expanding as a result of the rising aviation traffic in recent years.

• In the long term, the bitumen market share is expected to be driven by rising spending by governments in the region and policies toward roads and infrastructure development. They contribute to a greater use of bituminous materials in the construction and maintenance of roads. The market demand is boosted by expanding infrastructure projects and the installation of new industrial facilities in emerging economies.

Middle East and North Africa Vacuum Bottom Residue (Kerosene, VGO and Bitumen) Market Analysis

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The market is categorised on the basis of segments into kerosene, vacuum gas oil, and bitumen. Kerosene is further divided on the basis of type into naphthenic and paraffinic, while on the basis of application it is divided into transport and fuel, among others. Vacuum gas oil is sub-divided based on type into LVGO, MVGO, and HVGO. On the basis of application, vacuum gas oil is divided into gasoline production and diesel production, among others.

Bitumen is sub-divided on the basis of grade, into 20/30, 40/50, 50/70, 60/70, and 80/100, and based on type into high sulphur and low sulphur. Additionally, Bitumen is segmented based on application into road building and roofing, among others. The major countries in the market are Saudi Arabia, United Arab Emirates, Oman, Kuwait, Jordan, Qatar, Iraq, Bahrain, Egypt, and Morocco, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.  

• Wataniya Group

• Majd al-Iraq

• ISAB S.r.l.

• Al Salam Al Massi Co (ASAMCO)

• Phoenix Refinery

• Aran Asphalt Factory

• Others

Market Share by Segment

Vacuum gas oil is made using many methods, including hydrogenation and cracking, by the vacuum distillation column. The vacuum gas oil (VGO) segment growth is predicted to be fuelled by the rising demand for fossil fuels across a variety of industries over the forecast period. The primary usage of vacuum gas oil is as an intermediate feedstock to increase refineries' output of gasoline and diesel. Accordingly, the demand for VGO is expected to benefit from increased attempts to create a large supply of oil and gas, driving the Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market development.

Bitumen is frequently used in the construction industry for roofing because of its physical characteristics, including adhesion, water resistance, hardness, ductility, and higher softening point. There is a rise in demand for bitumen in the Middle East and North Africa region, as a result of expansion in the building industry brought on by an increase in urban population and the requirement for new homes. 

Kerosene, also referred to as paraffin oil, is a flammable liquid hydrocarbon. Due to its high flammability, it is most frequently utilised as a fuel for heating in both household and commercial settings. It is made from petroleum and can be burned in kerosene lamps, furnaces, or home heaters. It can also be used as a fuel for jet engines or as a component of gasoline, and as a solvent for pesticides and greases. Therefore, the growing use of kerosene is driving the Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market growth.

Market Share by Country

One of the pioneers in using high-quality bitumen on roads and runways is the United Arab Emirates, occupying a significant segment of the Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market. Construction of roads and highways is the principal use of bitumen, accounting for over 70% of its total use.  

Bitumen is provided to numerous industrial sectors in the United Arab Emirates by a variety of distributors and refinery companies. The bitumen providers in the United Arab Emirates are well-known companies, catering to a variety of business sectors, including building, contracting, and public works. 

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Competitive Landscape

Wataniya Group, founded in 2012 and with offices in Iraq and the United Arab Emirates, consists of several businesses. It focuses on many areas of the cement and oil-gas industries as well as oil trading, distribution, and transportation. The company has agreements with significant worldwide firms in the oil field sector, particularly in areas of naphtha treating units, bitumen refining units, and other cutting-edge oil industries licenced by well-known firms like Honeywell UOP and Pörner.

Majd al-Iraq, a bitumen and barrel production facility is located in the Kurdistan Region of Iraq and holds a strong position in the Middle East and North Africa vacuum bottom residue (kerosene, VGO and bitumen) market. Each day, Majd Al Iraq produces 1,000 metric tonnes of bitumen and sells it on the world market. By selling high-quality bitumen of various grades and specifications, Majd Al Iraq hopes to address the demand gap in the current global bitumen market.     

ISAB S.r.l., established in 1972, has three production sites that are connected to one another by a network of pipelines representing one of the largest industrial sites in Europe. Its plants for refining, gasification, and electricity cogeneration are part of the petrochemical division of Priolo Gargallo (Syracuse, Italy). Its operations include the refinement of oil and gas products like propane, diesel, and gasoline.

Other market players include Al Salam Al Massi Co (ASAMCO), Phoenix Refinery, and Aran Asphalt Factory, among others.

Key Highlights of the Report