Why the Middle East Carbon Dioxide Market Is Set to Surge by 2034 — and What It Means for Industrial Gas and Energy Leaders

Urban populations across the Gulf are expanding, polymer plants are running at record output, and beverage makers are racing to keep up with demand for carbonated drinks — all of it converging on a single industrial gas. According to Polaris Market Research, the Middle East Carbon Dioxide (CO2) market was valued at USD 1.33 billion in 2024 and is projected to reach USD 2.29 billion by 2034, growing at a CAGR of 5.60% from 2025 to 2034, as automakers, polymer producers, and beverage companies compete for reliable supply.

The Shift: What's Actually Changing in the Middle East CO2 Market

The region's CO2 story is no longer just about supply for food and beverage carbonation — it's increasingly about capture and reuse. National oil companies are investing in carbon capture, utilization, and storage (CCUS) to support enhanced oil recovery and decarbonization targets, while AI-driven forecasting and predictive maintenance are being used to cut energy waste and emissions across oil, gas, and petrochemical operations, reflecting a broader industry trend toward a more circular carbon economy.

The Middle East also remains one of the world's highest per-capita CO2-emitting regions, given its reliance on fossil fuels for power generation and, critically, desalination — an energy-intensive process that underpins water supply across arid Gulf states. That dynamic is pushing governments to pursue smart-grid technology and renewable-energy integration alongside CCUS, rather than treating carbon capture as a stand-alone fix.

Middle East CO2 Market by the Numbers

• 2024 Market Size: USD 1.33 Billion
• 2025 Market Size: USD 1.40 Billion
• 2034 Projected Market Size: USD 2.29 Billion
• CAGR (2025–2034): 5.60%
• Largest Market in 2024: Saudi Arabi

Growth Drivers, Key Players and Market Segments to Watch

The expansion is being driven by high polymer production — Saudi Arabia alone produced 19.4 million tons of polymer in 2022, according to the Gulf Petrochemicals and Chemicals Association — and rising automobile manufacturing, where CO2 is widely used as a welding shielding gas for aluminum and high-strength steel components, with key players including ADNOC, Aramco, Air Liquide, Air Products, Linde PLC, SABIC, and Gulf Cryo shaping the competitive landscape across segments such as By Source (Ethyl Alcohol, Hydrogen, Substitute Natural Gas) and By Application (Food & Beverages, Oil & Gas, Medical, Rubber, Firefighting).

By source, ethyl alcohol accounted for the largest revenue share in 2024, supported by fermentation byproducts from breweries, soft-drink manufacturers, and pharmaceutical producers across Saudi Arabia and the UAE. Substitute natural gas, however, is forecast to grow fastest as governments invest in energy diversification projects that generate CO2 as a byproduct for reuse in enhanced oil recovery and chemical manufacturing. By application, food and beverages led in 2024, while oil and gas is set to be the fastest-growing use case as EOR investment accelerates.

Saudi Arabia Leads Today, but the UAE Is Catching Up Fast

Saudi Arabia currently commands the largest share of the market, backed by a strong industrial base and heavy CO2 use across food processing, beverages, and enhanced oil recovery projects tied to its Vision 2030 diversification push. The UAE is closing the gap fast, driven by expanding CCUS investment — including ADNOC's 2023 final investment decision on one of the region's largest carbon capture projects — plus a fast-growing food and beverage sector tied to its role as a regional trade and tourism hub.

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What This Means for Teams Sourcing Industrial CO2 Supply

For procurement and sustainability teams sourcing industrial CO2 supply, the underlying report breaks down company positioning, segment-level forecasts, and country-level opportunity through 2034 — useful context for any sourcing, partnership, or investment conversation happening right now, particularly as buyers weigh the tradeoffs between captive supply from refineries and third-party merchant gas providers such as Gulf Cryo.

The Road Ahead

Middle East Carbon Dioxide (CO2) Market Expect continued growth in CO2 sourced from substitute natural gas projects as governments diversify away from crude oil, alongside rising demand from the oil and gas segment as EOR programs expand across Saudi Arabia, Qatar, and the UAE. The ethyl alcohol segment should keep the largest share of supply, even as investment in direct air capture — following Aramco's March 2025 launch of Saudi Arabia's first DAC test unit — signals where the next phase of growth may come from, alongside Technip Energies and LanzaTech's 2023 agreement to convert waste carbon into ethylene.

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