GCC countries’ fertiliser exports achieve record volumes
The GCC countries’ fertiliser exports have reached historical record levels, as rising market protectionism continues to dominate global markets, new figures by the Gulf Petrochemicals and Chemicals Association (GPCA) have revealed.
According to figures released by GPCA, fertiliser exports from the Gulf reached 20.4mn tons in 2017, growing by 5.3 per cent year-on-year, and at a six per cent compound annual growth rate (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 US, European Union and China, GPCA said in a press release.
GCC fertiliser production capacity is expected to reach 38.9mn tons in 2018 and an estimated 47mn 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 US$5.9bn in 2017, albeit down from a peak of US$7.2bn in 2014 due to a drop in global fertiliser prices.
In 2017, the industry generated US$6.7bn 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 Fertilizer Convention taking place on 18-20 September at the Kempinski Hotel Muscat.
Dr Abdulwahab al Sadoun, secretary general of GPCA, 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, 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.”