The Middle East ammonia market share is likely to increase extensively in the forthcoming years. The primary factor benefitting the industry growth is the significant rise in demand for nitrogen-based fertilizers across the agriculture sector.

As per the latest research conducted by Global Market Insights Inc., the Middle East ammonia market size is likely to be valued at USD 8.6 billion by 2028.

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The Middle East fertilizers industry struggled through price hikes and supply chain disruptions during the initial months of the pandemic. However, a series of factors, including banned phosphate exports from China, storm-dented US production, and soaring natural gas prices, resulted in plant shutdowns across Europe and significantly improved the exports in the region, which, in consequence, may propel the industry outlook in the years to come.

Another factor largely contributing to the proliferation of the Middle East ammonia industry is the increasing processed meat and dairy production and imports in countries like Egypt and Saudi Arabia. As per estimates by the Food and Agriculture Organization, Saudi Arabia produced over 1200 thousand tons of meat in 2020 compared to 1075 thousand tons in 2019. Besides, the low-cost availability of natural gas, a key ingredient in ammonia, in line with the growing product utilization as a refrigerant in cold chain facilities and the manufacture of explosives, plastics, textiles, dyes, pesticides, and other chemicals in the region, may positively influence the market forecast.

Listed ahead are some crucial factors supporting the industry progression.

Increasing sales of nitrogen-based fertilizers 

Middle Eastern countries, including Saudi Arabia, Iran, and Qatar, are among the leading urea and nitrogen fertilizers manufacturers across the globe. The production is majorly driven by the low-cost availability of natural gas, easing the construction of integrated export-oriented urea plants in the region. 

In addition, the changing demographics due to the ongoing Ukraine-Russia war has added new momentum to the industry growth.

With the conflict and western sanctions choked supply from Russia, the world's largest exporter of fertilizers, the Middle East is in the center of percussion with these supply shocks and has a lucrative opportunity to improve its dependability as a supplier to crucial markets.

The factors, along with the growing concerns about solid yield, fertility, and crop quality, may boost the Middle East ammonia industry landscape in the times ahead.

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Rising demand for dairy products

Ammonia is extensively used as a refrigerant in cold chain facilities. The increasing cross-border trade and demand for less labor-intensive milk-derived products and processed meat in countries like Egypt and Saudi Arabia may drive significant revenues to the Middle East ammonia market in the years to come.

As per recent facts and figures by the Food and Agriculture Organization, despite the COVID-19 disruptions, the annual dairy imports in Saudi Arabia rose by almost 13.5% in 2020.

Such optimistic scenarios are likely to fuel the Middle East ammonia market trends in the years to come.

Extending green initiatives

In May 2022, the Suez Canal Economic Zone took steps to lay the foundation for the production of green fuels for bunkering and the export market. The SCEZ signed six MoUs with international organizations and consortia, including Scatec, the Abu Dhabi Future Energy Alliance, the French EDF Renewables, Maersk, the Egyptian Enara Capital, UAE’s AMEA Power, and many more for the production of green ammonia and green hydrogen in Sokhna with an investment worth USD 10 billion.

The rollout of more such initiatives and increasing emphasis on clean energy production may bolster the Middle East ammonia market forecast in the years ahead.

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Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.