Luberef’s alignment with Saudi Vision 2030 is central to its corporate strategy, with a clear focus on economic diversification, industrial localization, and environmental stewardship. The Company is positioned as an enabler of the Kingdom’s energy and industrial transformation by moving beyond the export of raw materials and supporting the development of a more advanced downstream ecosystem.
Industrial Diversification Through LubeHub
A core element of Luberef’s Vision 2030 alignment is the LubeHub initiative in Yanbu, a purpose-built “Value Cluster Park” designed to create a localized industrial and job-creation cluster adjacent to Luberef’s production assets.
Localization of Finished Products
LubeHub provides third-party manufacturers (investors) with direct access to base oils through a piped feed, enabling domestic production of downstream products such as finished lubricants, transformer oils, white oils, rubber process oil, additive manufacturing, and bitumen.
Attracting Investment
The hub has secured conditional agreements and memorandums of understanding with international partners, including APAR Industries for localized transformer oil production and Valvoline for the establishment of a localized finished lubricants plant.
Economic Impact
By supporting local manufacturing, LubeHub is intended to reduce reliance on imports, stimulate domestic demand, encourage exports of high-value finished products, and create employment opportunities in line with national industrial objectives.
Economic Resilience and Portfolio Upgrading
Luberef contributes to Saudi Arabia’s diversification and industrial development under Vision 2030, supporting growth in the downstream and manufacturing sectors. The Company is expanding its base oil portfolio through the inclusion of Group III production under the Yanbu Growth II project, while continuing Group I and GII operations. This balanced approach underscores the Company’s flexibility and agility in addressing evolving market needs, with a strategic focus on higher-value segments and enhanced competitiveness in premium global markets, alongside sustained production to serve a diverse customer base.
Luberef is also expanding into high-growth regions such as Middle East, Africa, and emerging markets, leveraging the Kingdom’s strategic logistics advantage. These efforts reinforce Saudi Arabia’s role as a leading global base oil supplier and strengthen its position in the evolving energy and industrial landscape.
Human Capital and Saudization
In line with Vision 2030’s emphasis on national talent development, Luberef has advanced workforce localization and capability building. The Company has achieved an 84% Saudization rate, earning Platinum status under Saudi labor laws. Additionally, through the Luberef Leadership Center, we identify and develop local talent to support a sustainable succession of future Saudi leaders.
Sustainability and the Saudi Green Initiative
Luberef’s sustainability agenda aligns with the Saudi Green Initiative and Vision 2030 environmental targets.
Decarbonization: In 2025, the Company added GHG Scope 1 and Scope 2 reporting to its corporate KPIs, reinforcing emissions tracking and energy efficiency focus.
Innovation: Collaboration with KAUST, including exploration of Ultrasonically Assisted Oxidative Desulfurization (uODS), supports the development of low-sulfur products and strengthens technical competitiveness.
Circular economy: Luberef is evaluating re-refining and recycling opportunities as national waste management legislation matures.