Fertilizer exports from the Gulf Cooperation Council (GCC) states have hit a historic record, reaching 20.4 million tons in 2017, growing by 5.3 percent year over year, according to Gulf Petrochemicals and Chemicals Association (GPCA).
“Certainly, these growth figures contradict with what may result in the aggravation of tension in world markets and the changes imposed by trade policies among great economic powers such as the United States, the European Union and China,” GPCA said.
The GCC fertilizer industry remains heavily export-oriented, shipping its products to 80 countries in the world, with India, Brazil and the US as the top three export destinations.
Asia accounted for 55 percent of total exports in 2017, followed by South America with 21 percent, North America (15 percent) and Africa (seven percent).
According to figures by GPCA, the GCC fertilizer production capacity is likely to reach 38.9 million tons this year and poised to hit an estimated 47 million tons by 2025 growing at a CAGR (compound annual growth rate) of 7.7 percent between 2007-2017.
Saudi Arabia produces about half of the GCC's fertilizer production for 2018, at 46 percent.
GPCA said the sales revenues have also been growing at a CAGR of 5.7 percent between 2010 and 2017, standing at $5.9 billion in 2017, albeit down from a peak of $7.2 billion in 2014 due to a drop in global fertilizer prices.
As a key contributor to socioeconomic development in the region, GCC fertilizer industry provides 54,900 direct and indirect jobs. In 2017, the industry generated $6.7 billion in indirect economic activity in the region.
The figures came ahead of the 9th GPCA Fertilizer Convention set to be held on Sept. 18-20 in Muscat, Oman.
The three-day forum will highlight the key role of fertilizers in ensuring food security, innovations in regional agriculture and new trade developments in the world.
“Despite a continuing rise in global market protectionism, the 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,” said GPCA Secretary-General Dr. Abdulwahab al-Sadoun.
"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," he explained.
