Saudi Arabia Biofuel Market Overview

Market Size in 2024: USD 895.77 Million

Market Size in 2033: USD 2,498.01 Million

Market Growth Rate 2025-2033: 10.8% 

According to IMARC Group's latest research publication, "Saudi Arabia Biofuel Market Size, Share, Trends and Forecast by Type, Feedstock, and Region, 2025-2033", The Saudi Arabia biofuel market size reached USD 895.77 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2,498.01 Million by ​2033​, exhibiting a growth rate (CAGR) of 10.8% during ​2025-2033​.

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How AI is Reshaping the Future of Saudi Arabia Biofuel Market

• AI-powered waste sorting improves feedstock quality for biofuel production, increasing efficiency by over 22% in facilities like Saudi Biofuel Company’s plants.

• Machine learning models optimize biodiesel refining, reducing processing time and energy consumption by 18%, supporting Saudi Arabia’s green energy targets.

• Predictive AI analytics enhance biofuel supply chain management, cutting logistics costs and delivery delays by nearly 20%, boosting market responsiveness.

• Government AI initiatives under Vision 2030 foster smart bioenergy projects, encouraging collaboration with tech firms to integrate automation and data-driven insights.

• AI-driven research accelerates development of next-gen biofuels using algae and agricultural residues, positioning Saudi Arabia as a leader in renewable innovations.

Saudi Arabia Biofuel Market Trends & Drivers:

Saudi Arabia’s biofuel market is expanding rapidly due to the Kingdom’s commitment to sustainability and reducing fossil fuel reliance. A significant milestone in this growth is the establishment of a biodiesel plant in Al Jubail producing 4.2 million liters annually from recycled cooking and palm oils. This facility primarily serves local demand and exports excess output to Europe, supporting Saudi Arabia’s carbon-neutrality goal by 2060. Plans for a second plant in Jeddah aim to further increase capacity, reflecting the nation’s drive to develop a robust biofuel industry and diversify its energy mix responsibly.​

The adoption of circular economy principles is reshaping Saudi Arabia’s biofuel sector, focusing on converting agricultural and municipal waste into energy. Initiatives in cities like Riyadh are transforming food waste into biodiesel, reducing landfill volume and fostering urban sustainability. This approach aligns with Vision 2030’s emphasis on resource efficiency, providing environmental benefits while creating economic value. Public-private partnerships amplify this trend by combining expertise and funds to build biofuel production infrastructure. Collaboration with global firms enhances technology transfer and policy support, accelerating biofuel market maturity and private investment in renewable energy projects.​

Sustainable aviation fuel (SAF) is emerging as a crucial segment within Saudi Arabia’s biofuel market due to rising decarbonization efforts in the air transport sector. The King Salman International Airport, supported by the Public Investment Fund, has committed to using B100 biodiesel in its construction, which cuts emissions and aligns with national net-zero targets. MoUs between the Biofuel Company and key infrastructure developers highlight the strategic role of biofuels in large projects. This integration of biofuels in aviation and infrastructure marks a significant step toward greener energy consumption and showcases growing government and industry synergy in renewable fuels.

Saudi Arabia Biofuel Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Biodiesel

• Ethanol

• Others

Feedstock Insights:

• Coarse Grain

• Sugar Crop

• Vegetable Oil

• Others

Regional Insights:

• Northern and Central Region

• Western Region

• Eastern Region

• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Biofuel Market

• July 2025: Saudi Biofuel Company tripled refining capacity, boosting biodiesel production to 12.6 million liters annually, enhancing sustainable fuel supply nationwide.

• October 2025: King Salman Airport adopted B100 biodiesel for construction machinery, reducing carbon emissions by 30% and setting a renewable fuel usage benchmark.

• October 2025: KSIADC signed MoU with Biofuel Company to promote green energy projects, accelerating biofuel innovation and infrastructure development in the Kingdom.

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