Disparity between affluent nations and less prosperous countries continues to widen as trends align with patterns seen in Asian markets during evolving development phase. Report by Bruce Janda, Senior Consultant, ResourceWise.
We last visited the Middle East (here again excluding Türkiye for this report) with this column in mid-2023 and were hopeful that the end of the pandemic and absence of active wars would help the tissue economy in this region grow. Unfortunately, the conflicts have grown and several of the countries are in major turmoil. The prosperous gulf states are generally doing well but Iran, Lebanon, Syria, Yemen, and the Palestine Territories are in the conflict zones. Egypt is a middle-income country but still enjoys the tissue leadership position and is the export leader for out of the region exports. Tissue capacity growth continues in the other non-conflict zones.
Figure 1 highlights the tissue mills in the region, mainly located near coastal areas. Egypt’s mills, though geographically African, are included due to their proximity to Israel, Lebanon, and Syria. Green sites represent recycled fibre processing; dark squares indicate non-integrated virgin fibre production.
Table 1 provides an overview of the economic factors influencing tissue demand across all countries in the region. It is important to note several caveats regarding this data. The disparity between affluent nations, such as Israel and the oil-producing states, and less prosperous countries continues to widen. Ongoing and escalating conflicts have severely impacted the economies of Iran, Syria, Lebanon, Yemen, and Palestine. As recently as mid-2023, it would have been challenging to anticipate the extent of these deteriorations.
The compilation of Table 1 relied on three primary data sources; however, limitations persist due to the inconsistent quality of data available from local governments, many of which operate under significant strain and may have motivations to misrepresent economic and trade information. Consequently, data from conflict-affected areas should be regarded as synthesised estimates derived from the best available references.
Overall, the findings indicate increasing economic divergence within the region. Wealthier countries are cultivating a consumer tissue market comparable to European standards, while others are falling further behind. Relying solely on regional averages can present a misleading perspective on the development of the tissue sector in the Middle East.
Table 1: Middle East Economic Statistics Table (2024–2025)
Key Data Sources Used:
- World Bank – MENA Economic Updates (October 2025, April 2025)
- IMF – Regional Economic Outlook for Middle East & Central Asia (May 2025, October 2025)
- National Statistical Agencies – Saudi GASTAT, UAE FCSC, and others
- CIA World Factbook – December 2025 update
Table 1, click to expand
Figs 2-13, click to expand
Figure 2 shows tissue import trends by exporting country over the past twenty years. Data from conflict regions are best estimates. Indonesia, Türkiye, and China are leading suppliers, with a significant increase in imports from China in 2025. Importing country reports show total volumes about 50% lower than exporter data – likely due to countries overstating exports and understating imports for political reasons. Major importers include Saudi Arabia, Qatar, and Jordan; Bahrain, Egypt, Kuwait, and Iran report smaller or infrequent amounts.
Figure 3 shows tissue exports by country of origin, excluding intra-regional trade. Egypt is the sole major exporter outside the region, mainly sending products to Africa, Europe, and the United States. There are frequent shipments to the United Kingdom, continuing a trend seen in past export reviews.
Changes in internal production capacity in the Middle East are reflected by the installation or removal of tissue machines, as shown in Figure 4. Most countries added more machines than they decommissioned, with new equipment generally providing higher capacity. Egypt led replacements over the past twenty years, while the UAE and Saudi Arabia have recently expanded or planned additions. Qatar’s 2026 plans require further review, and data from conflict zones should be monitored for updates.
The region’s overall tissue capacity CAGR is 3.74%. Iran (13.17%), Saudi Arabia (6.05%), Iraq (4.73%), and Bahrain (4.42%) showed notable growth, whereas Syria, Jordan, Kuwait, Israel, and Lebanon had minimal or negative changes.
Figure 5 summarises tissue capacity across different countries in the region. Egypt, UAE, Saudi Arabia, and Iran account for 77% of this total capacity, reinforcing that Egypt continues to lead exports at present. There are about 62 tissue machines running in the Middle East at about 42 sites.
Figure 6 presents the types and quantities of tissue products produced by mills in each country. Egypt leads in total tissue output, with consumer bath tissue comprising 52% of its production. Approximately 20% of Egypt’s overall output is allocated to commercial tissue markets, likely reflecting Egypt’s position as a primary tissue exporter.
In most other countries, consumer bath tissue constitutes a smaller share of production. In the United Arab Emirates, facial tissue accounts for 46% of total production, and similar high levels of consumer facial tissue are observed among other producers. Commercial tissue grades represent a comparatively low volume for the majority of these markets. This may indicate that consumer facial tissue is favoured for its portability in small packages, catering to the need for tissue products outside the home. Such trends align with patterns seen in Asian markets during their development phase and suggest that tissue consumption culture continues to evolve in the Middle East.
Previous studies indicate that the Middle East experiences limitations in fibre recovery, which restricts the use of recycled fibre in tissue production. Figure 7 illustrates the proportion of recycled fibre utilised by each country, represented by the yellow bar segments. Among the producers, only Lebanon and Israel achieve approximately 50% recycled content.
Figure 8 presents production data by country, with an emphasis on the breakdown by furnish type. The blue bar stacks denote eucalyptus fibre imports. Egypt, UAE, Jordan, and Bahrain utilize a substantial proportion of eucalyptus fibre in their operations. The considerable quantities of tropical hardwoods indicated for UAE, Iran, Jordan, Syria, and Qatar are likely acacia pulp sourced from Indonesia.
Figure 9’s bubble chart displays each country’s tissue machine quality, with bubble size indicating production capacity. The X-axis shows average technical age, and the Y-axis, average machine speed. Saudi Arabia, UAE, Bahrain, Jordan, and Egypt operate the fastest machines, while Qatar and Iraq, though small producers with the newest equipment, have narrow and slower machines. One of the machines in the United Arab Emirates is an advanced technology machine built in 2015 using Valmet NTT equipment.
Figure 10 presents average tissue production costs by country, with cash cost per ton shown by bar height and capacity by bar width. Egypt sits in the middle for cash costs. Iraq, Lebanon, Saudi Arabia, Bahrain, and UAE have lower costs, while Jordan, Israel, and Syria are higher-cost. Iran leads in energy costs, followed by Israel. Freight and Duties make up the top portion of average cash costs.
Figure 12 shows how the average viability of tissue machines compares across different countries. The FisherSolve Next algorithm considers factors such as estimated capital needs, cash production costs, machine size, technical age, local economic risk related to grade, internal company risk, manufacturing competitiveness, tons produced per unit trim, and export charges. By considering these elements, the analysis goes beyond current cash costs to assess overall viability for the next five years. Kuwait, Lebanon, Israel, Qatar, and Syria have the worst viability scores in the region, mainly due to older tissue equipment and low productivity based on trim width. In contrast, Saudi Arabia, UAE, and Egypt score highest for tissue operations viability.
Figure 13 shows Scope 1 (on-site fuel) and Scope 2 (electricity) carbon emissions per ton of finished tissue. Saudi Arabia, Syria, Lebanon and Kuwait have the highest Carbon emissions per ton of tissue produced. Saudi Arabia, Syria, and Isreal all have very high scope 2 carbon emissions from purchased electricity. Qatar has the lowest overall carbon emissions followed by Iraq, Bahrain, Iran, Egypt, and the UAE.
Summary
This report offers an in-depth analysis of the Middle East tissue industry, covering production data, machine quality, cash costs, operational viability, and carbon footprint for multiple countries. Key findings include:
- Extensive use of eucalyptus fibre and acacia pulp in several nations.
- Notable variation in tissue machine speeds and technical ages across the region.
- Production costs differ, with Egypt and UAE showing competitive strengths.
- Saudi Arabia, UAE, and Egypt have the highest viability for tissue operations.
- Kuwait and Lebanon encounter challenges due to older machinery and lower productivity.
- Environmental impacts, particularly carbon emissions, range widely – Qatar and Iraq record the lowest emissions.
A detailed understanding of tissue producers and their individual machines is crucial for analysing the competitive landscape. This article presents an overview of the current tissue industry in the Middle East. Fluctuations in fibre prices, exchange rates, and environmental regulations create both opportunities and challenges for industry participants. Moreover, changes in ownership and consolidations are expected to persist among tissue mills in the Middle East, while investments in tissue-making capacity from neighbouring countries may impact imports and exports.
