A kilogramme of wood that costs Dh100,000 may sound unbelievable, but in the world of oud, it’s a price many are willing to pay. Known for its warm, woody, and long-lasting fragrance, oud is more than a scent and is a symbol of heritage and prestige.
From Indonesia to India, the rarest forms of this aromatic wood are fetching high prices, captivating perfume lovers and collectors.
At the recent Emirates Perfumes and Oud Exhibition at Expo Sharjah, traders, perfume makers, and collectors from across the region gathered to showcase and source the finest forms of this ancient aromatic treasure. Amid the shiny display bottles and wafts of smoke rising from burning oud chips, one fragrance stood out: Tarakan, from Indonesia, prized at Dh105,000 per kilogramme.
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“This is one of the most exclusive and rare oud chips in the world,” said Farooq Dawood from Ajmal Perfumes holding up a small wooden box lined with silk. “It has a distinct cinnamon base and sweetness that can last for days. Even after washing your clothes, the scent doesn’t fade away.”
Oud chips has been a part of Arabian culture for centuries. It’s burned in homes to welcome guests and used to scent clothes before special occasions. Across the Middle East, the fragrance carries prestige.
What makes oud different from any other scent is its natural origin. It comes from trees infected by a particular type of fungus. When trees like Aquilaria or Gyrinops are wounded or attacked by this fungus, they respond by producing a dark, resinous heartwood, the part that becomes oud. The infected wood emits the rich, earthy fragrance people pay thousands for.
But this transformation doesn’t happen overnight. It can take 20 to 25 years for the resin to mature and develop its signature complexity.
The fragrance of Tarakan sets it apart. “This one is incredibly strong. It stays on the fabric for days and can be used even for scenting homes and majlis,” said Dawood. “It’s not just perfume, it’s a piece of art from nature.”
Close behind in value are the Imphal Super from India, costing around Dh85,000, and Malino from Malaysia, priced at Dh70,000. Each has its own distinct fragrance, from the sharp and spicy to sweet undertones.
At another stall, Abdul Rashid, a perfume retailer, displayed what he called “ouds on the verge of extinction.” These near-vanished varieties are now sold for over Dh100,000 per kilogramme. “This price was unimaginable for this oud just a decade ago,” said Rashid.
“Back in 2017, this particular oud used to cost Dh10,000 per kg,” said Rashid. “Today, the same variety sells for twenty times that amount. It comes from the Philippines and is known for its smooth, long-lasting scent. The best ones are extracted from trees that are at least 25 years old.”
Rarity and time are not the only reasons behind the skyrocketing prices. Environmental restrictions and deforestation have made wild agarwood trees even scarcer, while the demand for natural oud continues to rise, especially from the Gulf region. “The supply is limited, and the market is full of collectors who want the best,” said Rashid.
Transforming infected wood into fragrant oud oil or chips is a long and delicate process. The wood is carefully harvested, cleaned, and dried in the sun. Then it is soaked in water, sometimes for weeks, to soften and enrich its resin.
After that, the wood is distilled to extract the precious oil, which is then aged for several months or even years to deepen the scent. A single ton of agarwood may yield just one or two kilogrammes of high-quality oud, making it one of the most expensive natural materials in the world.
“Oud oil isn’t like regular perfume,” said Mohammed Salah from Ateej Fragrances. “It’s pure, potent, and long-lasting. You only need a small drop to fill an entire room.”
The oil’s chemical composition changes with temperature, meaning that as your body warms up, the fragrance evolves. This quality makes oud so addictive to collectors and perfumers.
The exhibition also saw a number of local entrepreneurs, particularly Emirati women, who are taking traditional oud-making to the next level.
Mariam Alari, founder of Oudess, runs a small home-based perfume lab. What started as a personal hobby in 2021 has blossomed into a thriving business with more than six fragrance variants.
“We started from home because, as Arabs, perfumes are in our blood,” she said. “We make home mists, oud blends, attars, lotions, everything from scratch. We use premium oils from around the world, and we have even begun producing perfumes for other brands.”
Her creations combine the woody depth of oud with floral and musky undertones, giving them authentic Arabian charm.
Another exhibitor, Shuaib Abdullah Al Suwaidi, said his fascination with oud began as a child. “I used to carry a small bottle of oud to school every day. When my father bought perfumes from shops, I used to fight with him, because I wanted to make them myself.”
That childhood obsession turned into a business in 2019. Today, Al Suwaidi’s brand offers 30 different types of oud for men and women, using oils extracted from tree wood sourced from China, Indonesia, and Vietnam.
“My fragrances are different from what you find in the market,” he said. “They have a soul, a depth that comes only from natural extraction and patience.”
