Other BriefingsSustainable Aviation Fuels In the Middle East Aviation Sector: Insights and Opportunities
Middle Eastern governments and airlines are moving sustainable aviation fuels (SAF) from pilot activity toward commercial strategy.
The global aviation industry faces growing pressure to reduce carbon emissions while maintaining long term traffic growth. Governments and airlines increasingly view sustainable aviation fuels as a near term solution for reducing aviation emissions while preserving existing aircraft infrastructure. As a result, SAF development has become a major priority across international aviation markets.
The Middle East has emerged as a strong candidate for future SAF production and distribution. The region already operates some of the world’s largest aviation hubs, advanced refining infrastructure, and extensive fuel export networks. Countries such as the UAE and Saudi Arabia are strengthening their roles in aviation, logistics, and energy transition industries.
For foreign companies, the opportunity is not limited to fuel production. It also extends to feedstock sourcing, waste-to-fuel projects, airport fuel logistics, certification, emissions accounting, green hydrogen integration, and specialist compliance services. However, investors must account for high production costs, limited feedstock availability, fragmented international standards, and still-developing regional mandates.
Why sustainable aviation fuels matter for the Middle East aviation sector
Sustainable aviation fuels are classifiable as aviation fuels produced from non-fossil feedstocks such as used cooking oil, municipal waste, agricultural residues, biomass, and synthetic fuels derived from green hydrogen. Compared with conventional jet fuel, sustainable aviation fuels can reduce lifecycle carbon emissions by up to 80 percent depending on the production pathway and feedstock source.
Global aviation regulation increasingly supports SAF adoption. The International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA, requires airlines to reduce or offset emissions growth from international flights. Meanwhile, the European Union (EU) has introduced sustainable aviation fuels blending mandates under the ReFuelEU Aviation framework. Airlines also face increasing pressure from investors and customers to meet internal sustainability targets.
These developments directly affect airlines in the Middle East because the region depends heavily on international transit traffic connecting Europe, Asia, and Africa. Airlines operating long haul routes into regulated markets must increasingly demonstrate emissions reductions and sustainable aviation fuels usage compliance. Delayed sustainable aviation fuels adoption could weaken the competitiveness of regional aviation hubs in regulated international markets.
Sustainable aviation fuels adoption also facilitate the Middle East’s ambition to remain a leading global aviation hub. Airports in Dubai, Abu Dhabi, Doha, and Riyadh continue to expand passenger and cargo capacity. Integrating sustainable aviation fuels supply into these hubs can strengthen their long-term competitiveness as airlines and regulators tighten emissions expectations across international aviation markets.
Government initiatives and regional SAF strategies
Governments across the Middle East have accelerated sustainable aviation fuels related policies and partnerships during the past several years.
UAE
The UAE currently leads many regional initiatives through coordinated aviation, energy, and sustainability programs. In 2023, the country approved its General Policy for Sustainable Aviation Fuel. The policy aims to position the country as a regional SAF hub while supporting aviation decarbonization goals.
The government targets annual production of 700 million liters of SAF and plans to supply at least 1 percent of fuel used by national airlines at UAE airports with locally produced SAF by 2031.
The UAE’s sustainable aviation fuels roadmap aligns with the broader UAE Energy Strategy 2050 and the country’s Net Zero by 2050 agenda. Authorities continue to develop a national regulatory framework covering SAF production, certification, and investment incentives.
Public private partnerships have become central to the UAE’s sustainable aviation fuels expansion plans. Companies such as Masdar, ADNOC, Emirates, and Etihad Airways continue to collaborate on sustainable aviation fuels research, pilot projects, and commercialization efforts. In 2023, several UAE entities launched the Air CRAFT research consortium to support sustainable aviation fuels technology development and scaling.
Saudi Arabia
Saudi Arabia also continues to expand investments linked to sustainable fuels and aviation infrastructure under Vision 2030. Saudi Arabia views sustainable aviation fuels development as part of its broader industrial diversification and clean energy investment strategy. Although Saudi Arabia has not yet introduced formal sustainable aviation fuels mandates, the country continues to invest heavily in clean energy, hydrogen, and advanced refining technologies that could support future sustainable aviation fuels production.
Regional governments are cooperating with international aviation organizations, fuel producers, and technology providers to accelerate sustainable aviation fuels development. These collaborations support technical knowledge transfer, certification alignment, and future export opportunities.
Airline adoption and commercial deployment of sustainable aviation fuels
Middle Eastern airlines have started integrating sustainable aviation fuels into broader sustainability strategies as international aviation decarbonization accelerates.
Emirates and Etihad Airways have expanded sustainable aviation fuels testing, demonstration flights, and sustainability partnerships as part of broader decarbonization strategies. Both carriers increasingly position sustainable aviation fuels adoption within long term operational and network planning.
Qatar Airways and other regional carriers have joined international aviation sustainability alliances and decarbonization frameworks as international emissions requirements tighten.
Despite growing adoption, airlines still face major operational and financial challenges. sustainable aviation fuels remains significantly more expensive than traditional jet fuel. Airlines must also navigate complex international reporting systems and sustainability certification requirements. Different jurisdictions often apply different emissions accounting standards, sustainability criteria, and approved feedstock rules.
Route planning has also become more complicated. SAF mandates in Europe and other markets can affect fuel purchasing strategies, airport refueling decisions, and network economics. Airlines now require stronger internal capabilities for emissions reporting, fuel certification management, and compliance tracking.
Investment opportunities across the SAF value chain
SAF development creates investment opportunities across multiple sectors in the Middle East economy.
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Commercial Opportunity Map for Foreign Businesses |
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| Value-chain segment | Potential opportunities | Likely buyers or partners |
| Feedstock sourcing | Used cooking oil collection, municipal waste processing, biomass aggregation, feedstock traceability | Waste management firms, municipalities, fuel producers |
| Production technology | HEFA, alcohol-to-jet, gasification, power-to-liquid systems, green hydrogen integration | Energy companies, refiners, industrial investors |
| Airport infrastructure | Blending systems, storage tanks, fuel quality control, logistics upgrades | Airport operators, fuel suppliers, engineering firms |
| Certification and compliance | Lifecycle emissions analysis, CORSIA documentation, ReFuelEU reporting, audit services | Airlines, fuel producers, airports, trading companies |
| Trading and offtake | Long-term SAF supply contracts, book-and-claim models, regional export platforms | Airlines, corporate travel buyers, fuel traders |
Production facilities and refining infrastructure remain one of the largest opportunities. Gulf countries already operate sophisticated refining and petrochemical systems that can support SAF production expansion. Existing export infrastructure also provides an advantage for serving international aviation markets.
Feedstock supply chains are emerging as a critical investment segment. Companies continue to explore waste-based feedstocks, municipal solid waste conversion, biomass processing, and synthetic fuel technologies. In Abu Dhabi, Masdar and Tadweer Group announced plans to develop a commercial scale waste to sustainable aviation fuels project that would support both domestic aviation demand and regional exports.
Airport fuel logistics and storage infrastructure will also require investment as sustainable aviation fuels usage increases. Airports may need new blending systems, dedicated storage facilities, and upgraded fuel management processes to handle growing sustainable aviation fuels volumes.
Additional opportunities exist in carbon management services, sustainability certification, emissions accounting systems, and sustainable aviation fuels trading platforms. Regulatory complexity continues to increase across worldwide aviation markets, creating demand for specialized compliance and verification services.
Technology partnerships and research programs also continue to expand. Governments and private companies increasingly support pilot projects focused on synthetic fuels, green hydrogen integration, and next generation sustainable aviation fuels production pathways.
For regional energy companies, sustainable aviation fuels offers a pathway to diversify revenue streams while leveraging existing refining expertise and global fuel trading networks. Companies that understand evolving international certification standards and emissions regulations may gain stronger access to premium aviation fuel markets.
Challenges and future outlook for the Middle East sustainable aviation fuels market
Despite strong momentum, the Middle East sustainable aviation fuels sector still faces several structural challenges.
- Production costs remain high compared with conventional jet fuel. Large scale commercial production also remains limited internationally, creating supply constraints for airlines seeking long term SAF contracts. International sustainability standards remain fragmented. Different jurisdictions apply different rules regarding feedstocks, lifecycle emissions calculations, and certification procedures. A fuel that qualifies as sustainable in one market may not qualify under another regulatory framework.
- Feedstock availability presents another challenge. Although waste-based feedstocks and biomass resources continue to expand, long term scalability remains uncertain in many markets. Synthetic fuels derived from green hydrogen may eventually provide larger scale supply, but these technologies still require substantial investment and infrastructure development.
- Infrastructure limitations also affect sustainable aviation fuels Airports, fuel suppliers, and logistics operators must expand blending systems, transportation capacity, and storage infrastructure as SAF volumes increase. Airlines and fuel producers also face growing compliance complexity as more countries introduce SAF mandates and emissions frameworks. Companies increasingly need advanced monitoring systems, certification processes, and regulatory expertise to maintain compliance across multiple jurisdictions.
Despite these obstacles, long term growth prospects remain strong. The Middle East combines several advantages that support future sustainable aviation fuels expansion, including strong aviation demand, access to investment capital, advanced energy infrastructure, and global fuel export expertise.
As sustainable aviation fuels demand rises across Europe and Asia, Middle Eastern producers may secure a larger role in global aviation fuel supply chains, particularly in export oriented and long-haul aviation markets.
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Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE). Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China (including the Hong Kong SAR), Indonesia, Singapore, Malaysia, Mongolia, Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
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