Muscat, SEPT 16 - GCC fertiliser 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, fertiliser exports from the Arabian Gulf reached 20.4 million tons in 2017, growing by 5.3 per cent year on year, and at a 6 per cent CAGR between 2007-2017. Growth in regional fertiliser 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 fertiliser 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 per cent of total exports in 2017, followed by South America (21 per cent), North America (15 per cent), and Africa (7 per cent). GCC fertiliser 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 per cent between 2007-2017. 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.
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. In 2017, the industry generated $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 fertilisers in ensuring food security, innovations in regional agriculture and new trade developments from across the globe will take the stage at the 9th GPCA Fertiliser Convention taking place on September 18 – 20 at the Kempinski Hotel, Muscat, Oman.
Held under the patronage of Dr Fuad bin Jaafar al Sajwani, Minister of Agriculture and Fisheries, Oman, under the theme “New frontiers and opportunities”, the convention will open with a welcome address from Eng Salim al Aufi, Under-Secretary of the 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 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, 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 Fertiliser Convention for the first time in the Sultanate of Oman — the third largest producer and exporter of fertilisers 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.”
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