**Middle East buyers — mainly in Saudi Arabia, the UAE, Qatar and Kuwait — remain the deepest demand pool for Indonesian gaharu, favoring Arab Super and CIP Arab chips plus distilled oud oil for perfume and bakhoor. Reference reports put chip grades around USD 500-7,000/kg; premium oud oil runs far higher.**
Why do Gulf buyers drive Indonesian gaharu demand?
Oud — the Arabic word for agarwood — sits at the center of Gulf gift-giving, hospitality and personal fragrance. Households in Saudi Arabia, the UAE, Qatar and Kuwait burn gaharu chips as bakhoor to scent homes and clothing, and distill the resin into perfume oil. That daily ritual, not speculation, is what keeps orders flowing to Indonesian suppliers, which is why Middle East gaharu buyers anchor most serious export planning out of Kalimantan and Papua.
The numbers behind that demand are large. Several 2024-2025 market reports value the global agarwood and oud market at roughly USD 23.47 billion by 2033, growing near 7.12% CAGR across 2026-2033, with Asia-Pacific forecast as the fastest-growing region at about 47.8% share and China around 22.4%. The Gulf is the demand engine; Indonesia, alongside a handful of Southeast Asian origins, is a supply engine.
What is dehn al-oud, and why does Gulf ritual keep demand steady?
In the Gulf, gaharu reaches people in two refined forms. Dehn al-oud is the pure distilled oil, dabbed on the skin before prayer, a wedding or a meeting; attar blends that oil with florals such as rose for a lighter, layered scent. Alongside the oil, split chips are burned over charcoal as bakhoor, sending fragrant smoke through a majlis to welcome guests. Ramadan and Eid gifting, wedding seasons and returning pilgrims pull oud and bakhoor off the shelves in waves, and premium dehn al-oud remains a high-status gift between families and partners. Because the scent is tied to identity rather than fashion, Gulf buyers reorder year after year — which makes Indonesian gaharu a repeat trade, not a novelty.
Which gaharu grades do Middle East buyers ask for?
Gulf buyers grade by resin content, sinking behavior and aroma. The dense, dark, resin-saturated heartwood — gubal in Indonesian — commands the top prices; the lighter, lower-resin kemedangan sits well below it. Export price lists even carry grade names aimed straight at this market.
According to zonakeren.com’s July 2025 export list (USD/kg), the Arab-oriented and related grades span a wide band:
| Export grade name | Indicative USD/kg (Jul 2025) | Typical Gulf use |
|---|---|---|
| AB Super | 5,469 | High-sinking, distillation |
| Sabak Ulir | 2,735 | Mid-grade chips |
| Arab Super | 1,954 | Premium bakhoor, gift boxes |
| CIP Arab | 547 | Everyday bakhoor chips |
| Tri Arab | 235 | Volume bakhoor, blends |
Buyers rarely order by a single label. A Riyadh perfumer might take small lots of high-sinking chips for distillation while a Dubai gift house wants uniform, aromatic chips for bakhoor gift boxes. Matching the grade to the end use — burn, distill, or display — is where most negotiation happens.
What do Middle East buyers actually pay in 2026?
Published references vary widely because “gaharu” spans powder to museum-grade gubal. Treat every figure as indicative and grade-dependent, not a quote.
| Source (dated) | Product | Reference price |
|---|---|---|
| Kumparan / banjarhits (S. Kalimantan) | High-quality oud oil | USD 20,000-50,000/liter (~Rp 266-666 million) |
| Gaharu Export band (2026, indicative) | Plantation chips | USD 500-7,000/kg |
| Gaharu Export band (2026, indicative) | Oud / agarwood oil | USD 30,000-80,000/kg |
For context, Kumparan’s banjarhits desk reported South Kalimantan high-quality agarwood oil at USD 20,000-50,000 per liter (about Rp 266-666 million), driven by Middle East perfume and bakhoor demand. Gaharu Export’s reference band is USD 500-7,000/kg for plantation chips and USD 30,000-80,000/kg for oud oil, indicative and grade-dependent as of 2026; a final quote always confirms grade and scope.
What 2026 signals point to a stronger 2027?
This is an outlook, not a prediction. A few dated 2026-era signals suggest Gulf demand for Indonesian gaharu holds firm or firms up into 2027:
- The market-size forecasts above run through 2033, implying steady multi-year Gulf and Asia-Pacific pull rather than a one-off spike.
- Bank Indonesia cut its policy rate to 5.25% in July 2025, easing working-capital costs for exporters preparing 2027 shipments.
- Plantation (inoculated) supply from Kalimantan and Papua keeps maturing on the typical 7-15 year cycle, so more legal, traceable stock reaches export age.
None of that guarantees higher prices. Currency swings, buyer inventory cycles and quota changes can move the market, so treat 2027 as a planning horizon, not a promise.
How does plantation-first Indonesian supply meet Gulf grade preferences?
Gulf buyers concentrate at the top of the quality curve. Perfumers want high-resin heartwood that sinks in water for distillation into dehn al-oud, while gift houses want uniform, aromatic sinking chips for premium bakhoor boxes. Both preferences point to dense, resin-saturated gubal rather than lighter kemedangan — and both can be met, legally and repeatably, from cultivated Aquilaria. This is where a plantation-first supply matters for a 2027 outlook, not a promise: inoculated trees in Kalimantan and Papua are managed for resin formation, then sorted by sinking behaviour and aroma, so a buyer can specify a grade band and expect consistent lots. Cultivated, documented stock also carries a clearer legal-origin trail than wild wood — the practical foundation for the CITES paperwork any Gulf shipment needs. Within the 2026 indicative, grade-dependent band above, the final quote still turns on the confirmed grade and scope.
How does the CITES permit pathway work for Gulf shipments?
Aquilaria — the tree that produces gaharu — is listed under CITES Appendix II. That means legal export requires a CITES permit and a BKSDA (Balai Konservasi Sumber Daya Alam) recommendation, plus proof of legal origin through KLHK and, in practice, ASGARIN membership. Guidance from 2023-2025 notes a CITES export permit is typically valid up to about six months, with processing taking up to roughly 60 days for some destinations.
Gaharu Export is a sourcing broker and information hub — not a permit authority. It does not sell permit certainty or a customs guarantee. Before any Gulf shipment, confirm current requirements with the CITES Management Authority (Indonesia) and your import country, and prioritize plantation-grown, documented material over wild-harvested wood.
Frequently Asked Questions
Do Gulf buyers prefer Indonesian gaharu chips or distilled oud oil?
Both, for different uses. Chips (gubal) are burned as bakhoor and given as gifts, while distilled oud oil goes into perfume. Oil carries far higher per-kilogram value — Gaharu Export’s 2026 indicative band is USD 30,000-80,000/kg — but chips move in larger volumes, so most Gulf buyers order both, sorted by grade.
Which Gulf country imports the most Indonesian agarwood?
No single public dataset ranks Indonesian gaharu imports by Gulf country. Saudi Arabia, the UAE, Qatar and Kuwait are the consistently cited buyers, with Saudi and Emirati households and perfumers driving the largest bakhoor and oud volumes. Because reliable per-country figures are thin, treat any ranking as directional rather than exact.
How can a Middle East buyer confirm Indonesian gaharu is CITES-legal?
Ask for the CITES export permit, the BKSDA recommendation and proof of legal, cultivated origin through KLHK, and check that the supplier is an ASGARIN member. Permits are typically valid up to about six months. Always verify current rules with the CITES Management Authority in Indonesia and your own import country before shipping.
Work with the Gaharu Export trade desk
Gaharu Export is a plantation-first sourcing broker and information hub within Juara Holding Group; enquiries are handled by the Bali Premium Trip trade desk. If you are a Middle East buyer scoping grades, sample lots or a 2027 supply plan, share your target grade band, volume and destination country, and the desk will map a documented, plantation-first sourcing route, with CITES and BKSDA steps flagged early.
Reach the trade desk on WhatsApp at 6281128590000, by email at sales@balipremiumtrip.com, or through the enquiry form on this site. We aim to reply within 24 business hours with an indicative, grade-dependent range and the next steps to confirm grade and scope. No permit certainty or customs clearance is guaranteed — but an honest starting point is one message away.