The Middle East remains an important market for Malaysian palm oil, encompassing the Gulf Cooperation Council (GCC) countries as well as Yemen, Jordan and Lebanon. In addition to direct consumption, the region serves as a gateway to North Africa, the Levant and parts of Central Asia through established trading and logistics networks.
The operating environment has become more complex amid recurring disruption in the Red Sea. Attacks on commercial vessels have prompted shipping companies to reassess voyage routes, war-risk insurance, crew safety and port calls. Most Gulf ports remain operational and trade continues to flow, but freight costs, insurance premiums and vessel schedules have become more volatile.
Two maritime corridors remain central to regional trade. The Strait of Hormuz supports cargo movements into the Gulf, while the Red Sea and Bab al-Mandab corridor is particularly important for shipments serving western Saudi Arabia and neighbouring markets. Continued strain along either route could affect freight availability, insurance costs and delivery schedules.
Demand Remained Resilient Despite Disruption
Malaysia’s palm oil exports to the GCC countries, Yemen, Lebanon and Jordan increased by 4.1% to 326,835 MT during January–June 2026, compared with 313,961 MT in the same period of 2025. This indicates that overall demand remained resilient despite regional uncertainty.
The UAE and Saudi Arabia were the main drivers of growth. The UAE retained its role as a major import and re-export platform, while Saudi Arabia remained an important demand centre supported by its food manufacturing, bakery, confectionery, hospitality and industrial sectors.
The performance across individual markets was mixed. Oman, Kuwait, Qatar and Bahrain recorded lower imports, although these movements may also reflect changes in shipment timing, routing, inventories and regional logistics rather than demand alone.
Table 1: Malaysian Palm Oil Exports to Selected Middle East Markets, January–June 2026 vs January–June 2025 (MT)
| Country | Jan–Jun 2026 | Jan–Jun 2025 | Difference | % Difference |
|---|---|---|---|---|
| UAE | 181,589 | 145,720 | 35,869 | 24.6 |
| Saudi Arabia | 57,343 | 40,226 | 17,117 | 42.6 |
| Yemen Arab Rep. | 25,306 | 30,940 | -5,634 | -18.2 |
| Oman | 22,201 | 36,807 | -14,606 | -39.7 |
| Jordan | 14,563 | 17,945 | -3,382 | -18.8 |
| Kuwait | 9,174 | 17,661 | -8,487 | -48.1 |
| Qatar | 8,705 | 13,881 | -5,176 | -37.3 |
| Lebanon | 6,427 | 6,880 | -453 | -6.6 |
| Bahrain | 1,527 | 3,856 | -2,329 | -60.4 |
| Palestine | 0 | 45 | -45 | -100.0 |
| Total | 326,835 | 313,961 | 12,874 | 4.1 |
Source: MPOB
Regional Logistics and Market Roles
The UAE, particularly Jebel Ali, remains the region’s principal commercial and re-export hub for Malaysian palm oil. Its infrastructure, trading ecosystem and regional connectivity continue to support distribution across the Middle East and beyond.
Oman offers a complementary logistics option. The location of ports such as Salalah and Sohar supports alternative routing, storage and redistribution, including during periods when conventional Gulf routes face pressure. Its role is therefore relevant as part of a broader regional logistics network rather than as a substitute for the UAE.
Saudi Arabia combines substantial demand with strategic logistics importance. Jeddah is a major gateway for imports into western Saudi Arabia and neighbouring markets, although Red Sea conditions can affect cargo planning. Beyond bulk products, the market offers opportunities for refined palm oil, palm olein, specialty fats, bakery fats, food ingredients, oleochemicals and other higher-value palm-based products, supported by industrial expansion and the Kingdom’s economic diversification agenda.
Commercial Outlook
The trade data suggests that regional demand can remain resilient even when logistics become more complex. In this environment, delivery flexibility, regional stock availability and established relationships with importers, distributors and logistics providers can influence purchasing decisions alongside price and product quality.
A multi-hub network linking the UAE, Oman and Saudi Arabia provides Malaysian suppliers with wider commercial reach and additional routing options. This is particularly relevant while maritime conditions remain strained and shipping arrangements continue to change at short notice.
Conclusion
The Middle East continues to offer significant opportunities for Malaysian palm oil, supported by resilient demand, expanding food and industrial sectors, and the region’s importance as a trading gateway. Intermittent maritime disruption has added cost and uncertainty, but it has not displaced the region’s underlying commercial potential. Malaysia’s established presence, broad product range and access to multiple regional hubs remain important strengths as market conditions evolve.
Prepared by:
Muhammad Kharibi
