GCC fertilizer exports achieve record volumes amid rising global trade tensions
Fertilizer exports reached 20.4 million tons in 2017, growing by 5.3% year on year
Dubai, United Arab Emirates, September 16, 2018 – GCC fertilizer exports have reached historical record levels, as rising market protectionism continues to dominate global markets, new figures by the Gulf Petrochemicals and Chemicals Associations (GPCA), the voice of the chemical industry in the Arabian Gulf, have revealed.
According to figures by GPCA, fertilizer exports from the Arabian Gulf reached 20.4 million tons in 2017, growing by 5.3% year on year, and at a 6% CAGR between 2007-2017. Growth in regional fertilizer trade comes in stark contrast to escalating market tensions and changing trade policies between major economic powers such as the United States, European Union and China.
The GCC fertilizer industry remains heavily export-oriented, shipping its products to 80 countries from across the globe, with India, Brazil and the US revealed as the top three GCC export destinations. Asia accounted for 55% of total exports in 2017, followed by South America (21%), North America (15%), and Africa (7%).
GCC fertilizer production capacity is expected to reach 38.9 million tons in 2018 and an estimated 47 million tons by 2025, growing at a CAGR of 7.7% between 2007-2017. At 46%, Saudi Arabia accounts for almost half of GCC fertilizer production in 2018, followed by Qatar (25%) and Oman (12%), which has increased its share from 11% in 2017.
Sales revenues have also been growing at a CAGR of 5.7% between 2010 and 2017, standing at USD 5.9 billion in 2017, albeit down from a peak of USD 7.2 billion in 2014 due to a drop in global fertilizer prices. As a key contributor to socio-economic development in the region, the GCC fertilizer industry accounts for 54,900 direct and indirect jobs, growing at a CAGR of 7.2% over the past decade. In 2017, the industry generated USD 6.7 billion in indirect economic activity in the region, from support services, to warehousing and distribution, to packaging and others.
The key role of fertilizers in ensuring food security, innovations in regional agriculture and new trade developments from across the globe will take the stage at the 9th GPCA Fertilizer Convention taking place on 18-20 September at the Kempinski Hotel, Muscat, Oman.
Held under the patronage of H.E. Dr. Fuad Bin Jaafar Bin Mohammed Al-Sajwani, Minister of Agriculture and Fisheries, Oman, under the theme “New frontiers and opportunities”, the convention will open with a welcome address from H.E. Eng. Salim Al-Aufi, Undersecretary of Ministry of Oil and Gas, Oman, and opening remarks by Dr. Abdulrahman Jawahery, President, GPIC and Vice Chairman, GPCA.
Dr. Abdulwahab Al Sadoun, Secretary General, GPCA, commented: “Despite a continuing rise in global market protectionism, the Arabian Gulf region has enjoyed record high fertilizer exports in 2017, thus, cementing its position as a globally recognized hub for the production and export of fertilizers. To sustain and increase this growth, the industry would need to continue to explore new markets globally, and free trade will play a key role in ensuring its profitability and the sustainable development of the region, to which the industry is an important contributor.”
“We are proud to be holding the GPCA Fertilizer Convention for the first time in the Sultanate of Oman – the third largest producer and exporter of fertilizers in the Arabian Gulf, and one of the fastest growing markets in the region – and look forward to another successful edition with the support of Oman India Fertiliser Company (Omifco), a subsidiary of Oman Oil Company, and the valuable participation of local government officials, industry leaders and international experts.”