UAE Bio-based Naphtha Market Outlook

the united arab emirates (uae) is rapidly becoming the hub of the bio-based naphtha market in the world. the market in the uae is expected to stay strong due to the abundant availability of raw materials and the country’s strong commitment to renewables and sustainability. uae bio-based naphtha is expected to benefit from policies of the government aimed at promoting the use of renewable fuels and sourcing of energy from alternative sources. the country has also implemented a carbon-footprint reduction target which encourages the adoption of cleaner energy sources and technologies. although the cost of bio-based naphtha is still more than that of fossil fuels, the price difference is expected to reduce over the years as the supply of renewable fuels increases. this shift is evident in the way refrigeration systems are being powered in residential and commercial properties. solar thermal systems and some other renewable sources are being widely adopted due to their cost-effectiveness and efficiency. moreover, the uae also has a strong policy framework for research and development (r&d) and innovation in the field. the government is providing funding for both private and public researchers for projects related to green technologies and renewable energy. furthermore, some of the biggest projects in the country related to energy production are being based mostly on the use of bio-based naphtha. several multi-million dollar projects such as the power of polestar, the abu dhabi power corporation, the masdar 2030 energy project, the dubai carbon strategies and the solar emirates energy plan are all using green energy produced using bio-based naphtha. the uae’s growing demand for cleaner energy has generated new avenues of growth in the sector. this includes the construction of new biofuels refineries and solar power plants across the country to cater to the immense growth in the demand for energy. the uae also has a significant commitment to using renewable sources to meet its electricity needs and has long-term plans for energy security by 2030 that calls for the construction of more solar and wind power plants. in conclusion, the market for uae bio-based naphtha is expected to remain strongly positive over the period from 2018 to 2032 due to the increased demand for renewable energy and the commitment of the government to foster innovation in the sector. the country is also likely to benefit from the abundant availability of raw materials which have potential to significantly reduce the cost of production.