Middle East Industrial Gases Market Research Report: Forecast (2026-2032)

Middle East Industrial Gases Market Size: Forecast (2026- 2032)

The Middle East Industrial Gases Market size is valued at around USD 10.06 billion in 2025 and is projected to reach USD 12.68 billion by 2032. Along with this, the market is estimated to grow at a CAGR of around 4.72% during the forecast period, i.e., 2026-32.

Middle East Industrial Gases Market Key Takeaways:

• Large-scale hydrogen projects in the region are creating new, large demand streams for hydrogen and for associated air separation products such as nitrogen and oxygen. The NEOM Green Hydrogen project reached financial close at USD8.4 billion and is designed to produce up to 600 tonnes of green hydrogen per day using 4 GW of renewable power. This project also includes long-term offtake and EPC arrangements that explicitly cover supply chains for nitrogen and related industrial gas services.
• Major industrial gases players reported measurable revenue growth in the region in 2024, which demonstrates rising demand for merchant and onsite gases. Air Liquide reported that its Middle East and Africa industrial merchant revenue rose by 10.5% to USD310 million in the first quarter of 2024, reflecting stronger sales across all business lines. This growth rate provides a near-term benchmark for merchant gas demand expansion.

Middle East Industrial Gases Market Key Trends & Developments:

• June 25, 2024

Japan-based Mitsui announced it will build a low-carbon ammonia plant at Al Ruwais in the UAE with partners TA’ZIZ and Fertiglobe, and GS Energy. The facility is planned to produce 1.0 million metric tons of ammonia per year with CO2 capture and storage incorporated to reduce lifecycle emissions, creating a significant new regional outlet for hydrogen feedstock and affecting industrial gases flows linked to ammonia and hydrogen markets.

• July 16, 2024

Aramco and Air Products Qudra agreed on shared ownership of the Jubail blue hydrogen and industrial gases company, with Aramco taking a 50% stake. The arrangement includes plans to supply hydrogen via pipeline networks in the Eastern Province and to leverage existing industrial gases infrastructure to scale lower-carbon hydrogen supply for petrochemical and industrial users. This transaction is a clear indicator of consolidation and of oil and gas majors moving into industrial gases and hydrogen as integrated energy and feedstock businesses.

Middle East Industrial Gases Market Scope:

Middle East Industrial Gases Market Drivers:

Expanding Petrochemical Industry

The Middle East petrochemicals market is projected to grow from USD16.55 billion in 2024 to USD29.46 billion by 2033 at a CAGR of 6.7%. This calls for ultra-high purity gases for cracking, reforming, and catalysis. To reduce logistics cost and impurity risk, chemical complexes prefer onsite gas generation or captive plants. For instance, major refiners are awarding multi-year contracts for on-site oxygen and hydrogen plants to meet purity thresholds above 99.999%. The expansion of downstream refineries under Saudi Arabia’s Vision 2030 and ADNOC’s Derivatives Park is driving continuous consumption of industrial gases in reformers and polymer units. As facilities aim for energy efficiency and emission compliance, the reliance on controlled gas inputs is increasing across the Gulf’s refining corridors.

Hydrogen-Ammonia Adjacency Fueling Demand

Governments in the Gulf are aggressively pushing low-carbon hydrogen and ammonia as export value chains. The NEOM green hydrogen project, worth USD8.4 billion, will produce 600 tonnes per day of hydrogen and concomitantly nitrogen by air separation beginning in 2026. This dual production causes industrial gas suppliers to scale both oxygen, nitrogen, argon & hydrogen infrastructures. For instance, industrial gas firms are securing long-term contracts tied to ammonia hubs to secure downstream feedstock volumes. Additionally, the UAE, Oman, and Saudi Arabia have collectively announced over USD40 billion in low-carbon hydrogen projects through 2030, all requiring large-scale industrial gas input systems. This integration of hydrogen with ammonia export ecosystems is creating structural, long-duration growth for regional gas utilities and midstream suppliers.

Middle East Industrial Gases Market Trends:

On-Site Gas Generation Gaining Momentum

Major industrial players in the Gulf increasingly prefer in-plant gas generation to reduce transport cost risks and ensure continuity under supply disruptions. According to industry commentary, the Middle East region sees growing demand for dedicated units to produce nitrogen, oxygen, or hydrogen at client sites. For instance, petrochemical clusters are awarding multi-year contracts to build on-site cryogenic air separation or electrolysis units to meet purity and reliability standards. This shift helps reduce logistics costs by up to 20% and improves supply resilience in remote zones. The trend also aligns with regional sustainability targets by lowering energy use per tonne of gas produced compared with centralized liquefaction and long-haul trucking.

CO₂ Reuse & CCU Integration Within Gas Portfolios

Industrial gas suppliers are expanding into carbon capture, utilization, and storage, embedding CO₂ reuse services in their offerings. The UAE alone hosts 15 CCUS projects as of mid-2024, forming the largest share in MENA’s 28 projects to date. For instance, a gas company may capture CO₂ from a nearby plant and sell food-grade or beverage CO₂ back to clients, creating a vertical carbon value chain. This trend helps monetize emissions and strengthens supplier margins. It is also stimulating technology partnerships with energy firms to advance modular capture units that can be integrated into smaller manufacturing facilities.

Middle East Industrial Gases Market Challenges:

Fragmented Regulations & Logistics Friction

In the Middle East, industrial gas firms must navigate a highly fragmented regulatory and logistical environment that raises costs and delays deployment. Each Emirate in the UAE, for instance, regulates downstream oil and gas infrastructure independently without a unified federal framework. Transportation networks across the region also face cross-border delays, permits, customs complexity, and infrastructure gaps. For instance, logistics analysts cite border hold-ups and inconsistent transit rules that can add 15-25% extra lead time and cost to deliveries. These regulatory and logistics inefficiencies constrain the scaling of regional integrated gas networks and deter investment outside core industrial zones.

Middle East Industrial Gases Market (2026-32) Segmentation Analysis:

The Middle East Industrial Gases Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Gas

• Nitrogen
• Oxygen
• Carbon dioxide
• Argon
• Hydrogen
• Helium
• Acetylene
• Others

Oxygen is the leading product type in the Middle East industrial gases industry with about 29.18% of total market share in 2024. It dominates because oxygen is essential for steel mills, aluminum smelting, heavy manufacturing, and petrochemical oxidation processes. For instance, large steel or refinery complexes around Jubail and Yanbu require continuous oxygen for furnaces and combustion control, which gives oxygen providers a stable long-term offtake. The infrastructure for oxygen separation and delivery is more mature than for many specialty gases, which also lowers costs per ton delivered.

Based on Supply Mode

• Packaged Gas Supply (Merchant Sales)
• Bulk or Liquid Gas Supply
• Onsite Generation or Pipeline Supply
• Gas-as-a-Service Model

On-site generation or pipeline supply is the leading supply mode in the Middle East, holding 36.3% revenue share in 2024. This mode leads because many industrial and petrochemical facilities require an uninterrupted supply of gases at specified purity and pressure, which only pipeline or on-site units can reliably deliver. For instance, for large petrochemical hubs in Saudi Arabia, building cryogenic or membrane separation plants on‐site or linking via pipelines reduces reliance on bulk delivery and avoids logistics delays. The economies of scale from on-site or pipeline systems lower the cost per delivered cubic meter for high-volume users.

Leading Manufacturers of the Middle East Industrial Gases Market:

• Gulf Cryo

Gulf Cryo is a regional industrial, medical, and specialty gas producer founded in 1953 with operations across more than 10 Middle East countries and over 30 production and distribution sites. The group supplies bulk and packaged gases to petrochemical, healthcare, and manufacturing clients and is a market leader in MENA logistics and onsite services.

• ADNOC Industrial Gas

ADNOC Industrial Gas is a subsidiary of the Abu Dhabi National Oil Company (ADNOC), established to focus on the production, distribution, and marketing of industrial gases in the UAE and across global markets.

• Abdullah Hashim Industrial Gases

Abdullah Hashim Industrial Gases is a longstanding Saudi supplier with nearly 70 years of presence and a portfolio spanning industrial, medical, and specialty gases. The company expanded regionally through acquisitions and serves heavy industry clients with filling, onsite, and aviation-grade gases. Its recent buyouts strengthened market share in Saudi Arabia.

Buzwair Industrial Gases, Dubai Industrial Gases, Gulf Industrial Gases Company, Jordan Gases Company, Naga Gases, National Industrial Gas Plants, Yateem Oxygen, and others are the key players of the Middle East Industrial Gases Market.

Middle East Industrial Gases Market (2026-32): Regional Projection

The market for industrial gases in the Middle East is dominated by the UAE, which held the largest revenue share at 27.06% in 2024. UAE’s dominance stems from its advanced infrastructure, central logistics role, diversified industrial base, and strong investment in hydrogen and petrochemical hubs. For instance, ADNOC’s industrial gas projects in Al Ruwais and its strategic partnerships attract major gas suppliers. Within the UAE, emirates like Abu Dhabi and Sharjah host key industrial estates and free zones. Abu Dhabi’s Ruwais Industrial City and Sharjah’s Al Sajaa Industrial Oasis are rising hubs for high-purity gas consumption and import/export logistics.

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