Dr Al Sadoun: need to explore new markets globally

Dr Al Sadoun: need to explore new markets globally

GCC fertiliser output to hit 47mt by 2025

October 2018

The GCC fertiliser production capacity is likely to reach 38.9 million tonnes this year and poised to hit an estimated 47 million tonnes by 2025 growing at a CAGR (compound annual growth rate) of 7.7 per cent between 2007 and 2017.

At 46 per cent, Saudi Arabia accounts for almost half of GCC fertiliser production in 2018, followed by Qatar (25 per cent) and Oman (12 per cent), which has increased its share from 11 per cent in 2017, said a report by the Gulf Petrochemicals and Chemicals Associations (GPCA).

According to GPCA, the fertiliser exports in the Gulf region have surged to historic levels of 20.4 million tonnes, up 5.3 per cent in 2017 compared to the previous year as rising market protectionism continues to dominate the international markets.

The figures grew 5.3 per cent year-on-year registering a CAGR of 6 per cent between the 2007-2017 period, stated GPCA, the voice of the chemical industry in the Arabian Gulf region.

The GCC fertiliser industry remains heavily export-oriented, shipping its products to 80 countries from across the globe, with India, Brazil and the US emerging the top three GCC export destinations. GPCA said the sales revenues have also been growing at a CAGR of 5.7 per cent 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 fertiliser prices.

As a key contributor to socio-economic development in the region, the GCC fertiliser industry accounts for 54,900 direct and indirect jobs, growing at a CAGR of 7.2 per cent over the past decade, said the GPCA in its report.

The key role of fertilisers were in the spotlight at the ninth GPCA Fertilizer Convention which was held in Muscat, Oman, last month.

 At the event, GPCA Secretary General Dr Abdulwahab Al Sadoun said: “Despite a continuing rise in global market protectionism, the Gulf region has enjoyed record high fertiliser exports in 2017, thus, cementing its position as a globally recognised hub for the production and export of fertilisers.”

“To sustain and increase this growth, the industry would need to continue to explore new markets globally,” he added.

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