The United Arab Emirates (UAE) has long been a symbol of luxury. From its shimmering skyline to its world-class retail destinations, the nation’s taste for sophistication is evident in every detail, a quality that also shines through in its thriving beauty and personal care industry. In 2024, retail sales in the UAE’s premium beauty and personal care sector reached AED 4.9 billion (USD1.33 billion), growing 12% year-on-year, according to Euromonitor. This upward trajectory reflects not only rising affluence but also a deep appreciation for self-care, sophistication and innovation.
Yet, in today’s market, beauty is about more than glamour. UAE consumers are increasingly seeking authenticity, performance and sustainability. This shift in mindset is creating new opportunities for natural and renewable ingredients; an area where Malaysian palm oil and its derivatives can play an important role in powering the sector’s next wave of growth.
The UAE has emerged as one of the Middle East’s fastest-growing beauty and personal care markets, driven by high spending power, a thriving tourism sector and growing interest in wellness and premium products. The market continues to flourish across key categories such as fragrances, skincare, colour cosmetics and hair care.
The rise of premium beauty in the UAE is not merely a reflection of wealth, but it signals a deeper cultural and generational shift. Today’s consumers, particularly millennials and Gen Z are more health-conscious, eco-aware and digitally connected. They prefer brands that are transparent about sourcing, ethical in production and genuine in storytelling.
According to Euromonitor, the growing focus on health and wellness is transforming the beauty industry. Beauty is now viewed through a broader lens that includes nutrition, mindfulness and sustainability. This shift is driving demand for products that are natural, plant-based and free from harsh ingredients. Here, Malaysian palm oil fits perfectly. Its derivatives such as fatty acids, glycerine and vitamin E tocotrienols are natural, renewable and traceable. They offer superior functionality and versatility, making them indispensable in premium skincare, hair care and colour cosmetics formulations.
At the core of Malaysia’s palm oil value chain lies its oleochemical industry, which transforms crude palm oil into refined chemical compounds for use in cosmetics and personal care. Ingredients such as glycerine, fatty alcohols and surfactants form the backbone of luxurious high-performance formulations. The UAE’s growing demand for clean beauty, vegan formulations and gentle surfactants aligns perfectly with what palm-based oleochemicals can offer:
- Palm-based glycerine acts as a natural humectant, locking in moisture and keeping skin soft and supple: Ideal for face creams, serums and baby care products, one of the UAE’s fastest-growing premium categories (increase 29% in 2024).
- Fatty alcohols and esters provide the smooth, non-greasy textures prized in high-end lotions and sunscreens.
- Palm-based surfactants serve as mild alternatives to traditional sulfates, catering to consumers seeking gentler cleansing solutions.
- Palm tocotrienols, rich in antioxidants, help combat UV damage and premature aging: Essential benefits in the UAE’s sunny, arid climate.
Trade Overview
Malaysia’s palm-based oleochemical exports to the UAE have shown mixed performance in recent years. Export volumes stood at 110,420 MT in 2020, before falling to 87,994 MT in 2021, a drop of more than 20%. The sector rebounded to 99,471 MT in 2022, then moderated slightly to 97,560 MT in 2023 and 85,553 MT in 2024.
While the five-year trend shows a 22.5% decline, these fluctuations reflect market recalibration rather than structural decline. Several factors likely contributed:
- Post-pandemic inventory adjustments after the supply build-up of 2020.
- Price competition from tallow and coconut-based alternatives.
- Regional redistribution, with the UAE serving as a re-export hub to neighbouring GCC markets.
- Rising local manufacturing capacity in detergents, cosmetics and personal care products.
Despite these short-term adjustments, the long-term fundamentals remain strong. The UAE’s beauty and personal care industry is expanding, with consumer preferences shifting toward clean, vegan and halal-certified beauty. All of which can be readily supported by palm-based oleochemicals from Malaysia.
Why Malaysian Palm Oil Matters
Malaysia is a global leader in sustainable palm-based oleochemicals, supported by a mature downstream industry, world-class R&D and internationally recognised certification systems. Malaysian producers offer a wide portfolio of cosmetic-grade, halal and certified ingredients, aligning perfectly with UAE market needs.
The country’s commitment to sustainability through the Malaysian Sustainable Palm Oil (MSPO) certification also enhances its credibility in ESG-driven markets. For UAE-based manufacturers, sourcing from Malaysia provides both reliability and assurance, particularly as the Gulf states pursue industrial diversification under the UAE’s “Operation 300bn” strategy.
Malaysian oleochemicals offer additional technical and performance advantages:
- Superior oxidative stability, maintaining texture, colour and fragrance even in the UAE’s high heat.
- Smooth, premium sensory profile, essential for luxury skincare and cosmetics.
- High traceability and halal compliance, meeting both ethical and religious standards.
Opportunities for Malaysian Palm Oil in the UAE Beauty Industry
1. Supplying the Growing Halal Beauty Segment
The UAE is a leader in the global halal market, where certification has become a hallmark of quality and ethical sourcing. Malaysia’s robust halal certification system under JAKIM makes it an ideal partner for UAE beauty brands developing halal-compliant, plant-based products.
2. Positioning Palm Oleochemicals as Sustainable Beauty Ingredients
Sustainability is now a key purchasing criterion. Malaysian suppliers can leverage on the MSPO certifications to communicate transparent sourcing, low carbon footprint and biodiversity protection which is appealing to both local and international brands manufacturing in the UAE.
3.Expanding Value-Added Offerings
Moving beyond commodity trade, Malaysian producers can supply high-value specialty oleochemicals such as ester derivatives and isopropyl palmitate for cosmetic applications. Providing technical support and formulation expertise through UAE distributors would further strengthen brand preference.
4.Leveraging the UAE as a Regional Hub
With world-class logistics and free zones such as Jebel Ali, Dubai Industrial City and KIZAD, the UAE serves as a strategic re-export hub to the GCC, Levant and North Africa. Establishing regional distribution or blending facilities would enhance Malaysia’s market access and responsiveness.
A Future Defined by Wellness and Sustainability
The future of UAE beauty lies at the intersection of personalisation, wellness and sustainability. Consumers increasingly want products tailored to their environment and lifestyle, often guided by AI diagnostics and custom formulations. Palm-derived ingredients offer the flexibility to create lightweight hydrators for hot climates, high-SPF sunscreens for UV protection and antioxidant-rich cosmeceuticals for skin resilience.
Malaysia’s continued research into palm phytonutrients, particularly tocotrienols and carotenoids, is bridging the worlds of beauty, health and nutrition, aligning with the UAE’s wellness-led consumer movement.
As the UAE’s premium beauty market is forecast to reach AED6.47 billion (USD1.76 billion) by 2029, the demand for sustainable, high-quality ingredients will continue to grow. With its strong halal credentials, advanced downstream capabilities and globally recognised sustainability standards, Malaysian palm oil is expected to anchor the UAE’s transition towards a greener, more ethical beauty industry. From oleochemicals that deliver silky, stable formulations to phytonutrients that enhance wellness-driven beauty, Malaysia’s palm oil industry offers more than ingredients. It offers innovation, trust and sustainability.
Prepared by: Nursabrina Hayat
