UAE Overtaken as Key Naphtha Supplier to Korea

Algeria achieved a new milestone in Asian energy markets, leading the list of naphtha suppliers to South Korea during the first half of 2026. This positioned Algeria ahead of competitors, including the United Arab Emirates. Data from the Korea International Trade Association (KITA), as reported by the Embassy of the Republic of Korea, indicates that Algeria secured 17.2 percent of South Korea's total naphtha imports during the first six months of 2026, making it the primary supplier of this essential raw material for the Korean petrochemical industry.

This leading position reflects a clear upward trajectory in Algerian naphtha's presence within the Korean market. Algeria's share increased from 12.9 percent in 2024 to 15.6 percent in 2025, before exceeding 17 percent in the first half of 2026. Naphtha holds strategic importance for South Korea as a hydrocarbon derivative and a fundamental raw material for petrochemical industries, suggesting that Algeria's increased market share extends beyond a simple rise in energy material exports. This development opens avenues for broader industrial and energy cooperation, especially given Korea's need for stable raw material supplies.

Algeria benefits from its geographical location on the Mediterranean Sea, which allows Algerian naphtha to be shipped to Asian markets via maritime routes that do not necessitate passage through the Strait of Hormuz. This provides Algerian exports with crucial logistical flexibility, particularly for East Asian markets. This geographical advantage, combined with Algeria's hydrocarbon reserves and export capabilities, strengthens its position in international energy and raw material supply chains. Seoul has expressed readiness to support the development of economic cooperation with Algeria, particularly in the energy sector, acknowledging the special importance of Algeria's Mediterranean location and hydrocarbon potential.

This economic alignment offers opportunities to enhance Algerian-Korean relations in energy trade, industry, and petrochemicals. The figures from recent years confirm Algeria's trajectory towards solidifying its presence in the Korean market as a significant naphtha supplier. With sustained Asian demand for petrochemical raw materials, Algeria possesses significant potential to further expand its exports, leveraging its energy resources, Mediterranean location, and port network. Algeria's leading position in naphtha supply to South Korea thus serves as an indicator of its growing presence in Asian markets and its ability to transform its geographical location and energy wealth into a competitive advantage in international trade of energy and raw materials.