- The Port of Fujairah is the world’s second-largest bunkering hub, recording over 90 million tonnes of marine fuel sales annually — second only to Singapore.
- A DMCA Marine Fuel Suppliers Licence for Dubai costs AED 25,000 initially; Fujairah bunkering licences are issued by the Fujairah Ports Authority and cost from AED 18,000.
- IMO 2020 sulfur cap compliance has driven demand for VLSFO (Very Low Sulfur Fuel Oil) and LNG bunkering, with ENOC, ADNOC, and Vitol among the major UAE suppliers.
- Bunkering companies must maintain a mandatory AED 500,000 performance bond and carry minimum third-party liability insurance of AED 10 million.
- Fujairah Free Zone offers bunkering and oil trading licences from AED 15,000 per year, making it the most cost-effective base for regional bunker traders.
Updated August 2026. Marine fuel supply — commonly called bunkering — is one of the most commercially significant maritime services in the UAE, underpinned by the country’s position at the crossroads of East-West shipping and its proximity to major oil production infrastructure. The Port of Fujairah on the UAE’s east coast has grown into the world’s second-largest bunkering hub, attracting tankers, container ships, and bulk carriers from across the Indian Ocean and Arabian Gulf for fuel uplift. In parallel, Jebel Ali and Abu Dhabi’s Ruwais terminal serve the Arabian Gulf bunker market, with ADNOC, ENOC, and multinational trading houses competing alongside specialist bunkering companies for market share worth over USD 15 billion per year in UAE bunker fuel sales. This guide covers the regulatory landscape, licence requirements from DMCA and Fujairah Ports Authority, cost structures, IMO 2020 compliance implications, and free zone options for companies entering the UAE bunkering market in 2026.
Why Fujairah Is the UAE’s Bunkering Capital
The Port of Fujairah’s dominance in global bunkering stems from several structural advantages that compound over time. First, its east coast position outside the Arabian Gulf means vessels trading between Asia, Europe, and Africa can bunker without deviating from their course or paying the insurance premium associated with Strait of Hormuz transits — saving vessel owners an estimated USD 15,000–40,000 per transit in insurance and time costs. Second, Fujairah is home to an enormous tank farm complex — the largest outside Rotterdam — with over 14 million cubic metres of petroleum storage capacity, ensuring fuel availability even during supply disruptions. Third, the Fujairah Oil Industry Zone (FOIZ) clusters major oil companies, trading houses, and logistics operators in a single industrial zone, creating a liquid secondary market for spot bunker fuel procurement. The Fujairah Oil Terminals (FOT), operated in partnership with Abu Dhabi’s ADNOC, are a key component of the UAE’s strategic petroleum reserve and commercial fuel supply infrastructure. In 2025, Fujairah bunker sales exceeded 90 million metric tonnes, cementing its position as the world’s second-largest bunkering port and narrowing the gap with Singapore — which recorded approximately 53.5 million tonnes in the same period (Fujairah data includes offshore OPL bunkering volumes). Major fuel suppliers operating at Fujairah include ADNOC, ENOC, Shell Marine, Vitol, Trafigura, and over 30 licensed independent bunkering companies.
Bunkering Licence Requirements: DMCA and Fujairah Ports Authority
The regulatory framework for marine fuel supply in the UAE is divided between emirate-level authorities. In Dubai, bunkering at Jebel Ali Port and Port Rashid requires a DMCA Marine Fuel Suppliers Licence. This licence is issued by the Dubai Maritime City Authority and has an initial fee of AED 25,000, with annual renewal at AED 10,000. Applicants must demonstrate: a minimum share capital of AED 500,000 in the operating entity; a physical office in the UAE; a performance bond of AED 500,000 in favour of DMCA; and evidence of an agreement with a licensed bunker fuel supplier or own fuel storage arrangement. Bunkering operations at Jebel Ali must use DMCA-approved bunkering barges, and all deliveries are metered by an independent quantity surveyor. In Fujairah, the Fujairah Ports Authority (FPA) issues bunkering licences separately. FPA bunkering licence fees start at AED 18,000 per year and require similar documentation to DMCA. The FPA also mandates that all bunkering operations comply with MARPOL Annex VI requirements and maintain an Oil Record Book. Bunkering barges must be FPA-approved, with a current UAE flag certificate or a valid UAE port entry permit. In Abu Dhabi, bunkering at Ruwais and Zayed Port falls under the jurisdiction of AD Ports Group, with separate supplier agreements required. At the federal level, the Ministry of Transport and Logistics (MOT) oversees overall marine fuel quality standards and the UAE’s implementation of IMO regulations. The Federal Customs Authority classifies marine fuel under specific HS codes for duty-exempt status under the GCC Common Customs Law, an important cost consideration for bunker fuel importers and traders.
IMO 2020 and Alternative Fuel Trends in UAE Bunkering
The IMO 2020 global sulfur cap — limiting marine fuel sulfur content to 0.5% outside ECAs (Emission Control Areas) — fundamentally reshaped the UAE bunkering market from 2020 onwards. The demand shift away from High Sulfur Fuel Oil (HSFO, 3.5% sulfur) toward Very Low Sulfur Fuel Oil (VLSFO, 0.5%) and Marine Gas Oil (MGO, 0.1%) has been substantial, and UAE suppliers have adapted their tank farm infrastructure accordingly. ADNOC and ENOC now supply VLSFO as the primary bunker grade at both Fujairah and Jebel Ali, with spot prices in the range of USD 580–680 per metric tonne as of mid-2026 (subject to crude oil price movements). HSFO remains available for vessels with scrubber (EGCS — Exhaust Gas Cleaning System) installations, and demand for HSFO has stabilised among the scrubber-fitted fleet. The UAE is also developing infrastructure for next-generation alternative marine fuels. ADNOC conducted the UAE’s first LNG ship bunkering trial at Khalifa Port in 2023 and has committed to establishing a commercial LNG bunkering facility by 2027. Green methanol bunkering is being explored by DP World in partnership with several major container lines as part of their net-zero shipping commitments. Bunkering companies positioning for the 2030–2040 energy transition should assess the UAE’s emerging biofuel and ammonia bunkering pilot projects, several of which have received MOT regulatory sandbox approvals.
Free Zone Options for UAE Bunker Traders and Fuel Suppliers
Companies operating in the UAE bunkering sector — particularly traders who procure and on-sell marine fuel without owning physical assets — can benefit substantially from free zone licences. Fujairah Free Zone (FFZ) is the natural choice for bunker traders targeting the Fujairah OPL (Outside Port Limits) market, offering oil and gas trading licences from AED 15,000 per year and proximity to the Fujairah Oil Industry Zone. FFZ entities can hold fuel in Fujairah tank farms under storage agreements and trade internationally without customs duty complications. JAFZA is preferred for traders who also handle physical delivery at Jebel Ali, given its co-location with the port. Dubai Multi Commodities Centre (DMCC) offers a specific Energy Trade Licence covering crude oil, petroleum products, and marine fuel trading, with licence fees from AED 20,000 per year and a prestigious Almas Tower address. DMCC has become a hub for regional commodity trading houses and allows multi-commodity licences that cover both bunker fuel and other energy products. For Abu Dhabi-based traders, ADGM (Abu Dhabi Global Market) offers a sophisticated regulatory framework for commodity trading, particularly suited to traders who also handle financial hedging of fuel price risk. All bunker traders — regardless of free zone — must comply with UAE Anti-Money Laundering (AML) regulations and maintain robust Know Your Customer (KYC) procedures for fuel purchasing counterparties. See our UAE Oil & Gas Trading Company Guide 2026 for a full analysis of energy trading structures. Also review our UAE Corporate Tax & Free Zone Guide 2026 for tax treatment of commodity trading income.
Marine Fuel and Bunkering Cost and Revenue Benchmarks
| Parameter | Fujairah | Jebel Ali (Dubai) | Ruwais (Abu Dhabi) |
|---|---|---|---|
| Bunkering Licence Fee (annual) | AED 18,000 | AED 25,000 (DMCA) | AD Ports agreement |
| Performance Bond Required | AED 500,000 | AED 500,000 | AED 300,000 |
| VLSFO Spot Price (mid-2026) | USD 590–660/MT | USD 595–675/MT | USD 585–650/MT |
| Typical Trader Margin | USD 5–15/MT | USD 6–18/MT | USD 4–12/MT |
| Annual Bunkering Volume | 90M+ MT | 8M+ MT | 3M+ MT |
| Free Zone Licence Option | Fujairah FZ from AED 15,000 | JAFZA or DMCC from AED 18,500 | KIZAD / ADGM |
Frequently Asked Questions
Can a company based in a UAE free zone supply bunkers without holding a DMCA licence?
A free zone company (e.g., JAFZA or DMCC entity) can trade marine fuel commercially — buying and selling bunker fuel on a paper or physical basis — without a DMCA Marine Fuel Suppliers Licence. However, to physically deliver bunker fuel to a vessel at Jebel Ali Port or Port Rashid, the delivering entity must hold a valid DMCA bunkering licence and use DMCA-approved bunkering barges. Free zone traders who do not own delivery assets typically appoint a licensed physical bunkering company as their delivery agent, paying a barging/service fee of approximately USD 3–6 per tonne.
What is the difference between OPL bunkering and in-port bunkering at Fujairah?
In-port bunkering occurs when a vessel enters Fujairah Port for the sole purpose of fuel uplift — the vessel berths or anchors within the port limits and bunkers are delivered directly from the tank farm or by a licensed barge. OPL (Outside Port Limits) bunkering, which accounts for a large share of Fujairah’s volume, occurs when vessels anchor offshore in international waters and receive fuel from a licensed bunkering barge that departs from the port. OPL bunkering is faster (no port dues, no pilotage) and preferred for transit vessels. Both require Fujairah Ports Authority-licensed barges and suppliers, but OPL operations require additional compliance with the UAE’s offshore jurisdiction rules under MOT guidance.
How does UAE corporate tax affect bunker fuel trading income?
Bunker fuel trading income generated by UAE-based companies is subject to the standard 9% UAE corporate tax rate on taxable profits above AED 375,000. However, qualifying free zone persons (QFZPs) may enjoy a 0% rate on qualifying income, which includes certain commodity trading activities conducted with non-UAE clients. A bunker trader in JAFZA or Fujairah Free Zone selling to foreign vessel owners outside the UAE may qualify for the 0% QFZP rate, subject to meeting the substance requirements (adequate employees, operational expenditure, and assets in the UAE). Mixed income — domestic versus international — requires careful segmentation. Professional tax advice is essential; our UAE Corporate Tax & Free Zone Guide 2026 covers QFZP rules in detail.
What insurance is required for UAE marine fuel bunkering operations?
Physical bunkering operators in the UAE must maintain: (1) Third-party liability insurance with a minimum cover of AED 10 million, covering fuel spills, vessel damage, and personal injury during delivery; (2) Pollution liability insurance (MARPOL-compliant) covering oil spill response costs, which can be substantial in the Arabian Gulf’s contained waters — minimum cover is typically USD 1 million per incident; (3) Marine hull and machinery insurance for owned bunkering barges; and (4) The mandatory performance bond required by the relevant port authority (AED 500,000 for DMCA and Fujairah). For paper traders without physical assets, professional indemnity insurance covering trading errors and omissions is strongly recommended, with typical cover of USD 5 million.
What is the outlook for LNG bunkering growth in the UAE?
LNG bunkering in the UAE is at an early stage but growing rapidly. ADNOC Gas (formerly ADGAS) is the primary LNG supplier and has conducted multiple ship-to-ship LNG bunkering trials at Khalifa Port since 2023. The UAE’s strategic position as an LNG exporter (from Das Island) and the growing fleet of LNG-fuelled container ships operated by major lines calling at Jebel Ali create a natural market. MOT has published draft regulations for LNG bunkering operations in UAE ports, covering safety exclusion zones, leak detection requirements, and crew training standards (consistent with IMO IGF Code). Commercial LNG bunkering infrastructure at Jebel Ali is anticipated by 2027–2028, following the completion of AD Ports’ Khalifa Port LNG bunkering terminal. Early market entrants with LNG supply agreements and compatible delivery equipment are best positioned to capture this emerging segment.